

Board Director Compensation Trends in Healthcare

Director compensation among middle market public companies is up 12 percent in fiscal year 2013, a significant jump from the 3 percent increase in the previous year, according to an analysis of 600 companies conducted by BDO USA, LLP, a leading accounting and consulting organization.



Average healthcare director compensation climbed to $163,069 in fiscal year 2013, an 11 percent increase over fiscal 2012, when director compensation at $146,636, had remained essentially unchanged over the year before. This year’s healthcare compensation increase is equal to the mode of the increases seen across the eight industries surveyed. Retail and banking directors saw the lowest increases, at 2 percent and 4 percent, respectively, while non-banking financial services director compensation increased at an average of 36 percent.



Healthcare Continues to Rank Third in Overall Compensation

Similar to last year, average total director compensation in the healthcare sector continues to fall just behind that found in the energy and technology sectors. While there is no year-over-year spike in compensation in the sector, the strong overall director compensation levels reflect a need to attract board talent that has the skills and experience to effectively manage a risky business environment that may see increased merger and acquisition activity and continued regulatory compliance challenges.



Pay Mix Favors Equity