Greetings from my hometown of Gettysburg and the opening day of The 2019 OPEN MINDS Leadership Retreat. To open the institute, I presented the results of our just-released survey, Trends In Specialty Provider Organization Executive Compensation & Retention: The OPEN MINDS 2019 Survey.
Each year we take a look at current salaries among executives of specialty provider organizations. My takeaway this year – the workforce challenge isn’t only for direct service staff. If you’re running a smaller organization and/or an organization in the long-term care or intellectual/developmental disability (I/DD) service space, your executive compensation rates probably make it difficult to compete for talent.
What do I mean? Median chief executive officer (CEO) compensation varies by market. Median compensation in all markets among respondents from both 2018 and 2019 was $159,500. Behavioral health and I/DD and long-term services and support CEOs fell below the median at $156,000 and $145,000 respectively. Child and family services CEOs had compensation at $165,000 and primary care executives had the highest salary at $208,000.
The differences in compensation are even more striking when compared to organizational size. Among 2019 respondents, the median salary for CEOs at organizations with less than $10 million in revenue was $137,000 and 67% made less than $150,000. For organizations with $10-50 million in revenue, only 18% of CEOs make less than $150,000 and have a median salary of $196,650. At organizations with more than $50 million in revenue, the results are even more striking. No CEO made less than $150,000 and median salary was $285,000.
These shifts in compensation trends for CEOs parallel compensation differentials across the c-suite executive teams. And, they are yet another factor for consideration in strategies about market expansion and scale. For organizations below $10 million, are they going to be able to adequately attract and compensate c-suite executives? If you’re organization decides to scale, are you going to be able to raise compensation for your c-suite team? Will growth help your organization attract talent?
For more, check out: Trends In Specialty Health & Human Services Executive Compensation & Retention: The OPEN MINDS 2019 Survey Executive Summary. The survey report is available at no cost to the field thanks to the generous sponsorship of Core Solutions. The survey provides information on executive compensation by market and organizational size, the number of executives planning to leave their organization by market and size, why executives are planning to leave their organization, and whether or not they believe they are replaceable at the same pay. Additionally, the survey contains a comparison of 2018 and 2019 respondents for trends.
For more on how to successfully lead your organization, stay tuned over the next few days as we discuss leadership in the context of value-based reimbursement, changing regulations, and organizational challenges. You can follow us on twitter @openmindscircle #OMLeadership.