CEOs and chief financial officers at the largest for-profit hospital systems saw their compensation plummet last year, as C-suites across the industry grappled with higher expenses and investment losses.
Dallas-based Tenet Healthcare executives saw the biggest drops in compensation—nearly 48% for CEO Saum Sutaria and about 62% for Chief Financial Officer Daniel Cancelmi, who will retire at the end of 2023.
Executives at Encompass Health, based in Birmingham, Alabama, and specializing in post-acute care, fared the best of the group, with an approximately 6% drop in CEO Mark Tarr's compensation and just over a 7% decrease for CFO Doug Coltharp.
The Securities and Exchange Commission requires publicly held companies to disclose information on executive compensation in their annual proxy statements. Nonprofit organizations that are tax-exempt have no such requirement. Instead, they annually report executive compensation in their tax filings. As a result, information on executive compensation in 2022 for the five largest nonprofit systems by revenue—Kaiser Permanente, CommonSpirit Health, Providence, Ascension and UPMC—was not publicly available.
Among the five largest publicly traded health systems, last year's troubled market also contributed to fewer equity-based incentives for some leaders. There were no bonuses awarded.
Here's a look at how much less executives took home last year.