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Total compensation for some of the highest-paid CEOs in the healthcare industry increased faster than their companies' profits last year, a Modern Healthcare analysis of the first firms to report executive pay found.
Increasingly, companies use performance—rather than simply length of time since the grant of stock or options—to determine whether executives can cash in on these awards. Performance measures are applied not only to one-time awards, but more commonly to vesting annual equity payouts as well, said Steven Sullivan, Vice President at Pearl Meyer & Partners, a compensation consulting firm. “Performance shares are kind of everywhere.”