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Long-term care corporate executives took home an average salary increase of 3.69% last year, up slightly from the 3.17% reported salary increase in 2022, according to a new report.

Salaries for the nation’s long-term care CEOs ranged from $341,401 to $861,124, with average total compensation landing at $609,058, according to the 2023-2024 Multi-Family Corporate Compensation Report from Hospital & Healthcare Compensation Service. The report was released Wednesday.

The 40th annual study covers corporate compensation of top executives of multi-site continuing care retirement communities, assisted living/personal care communities, independent living communities and nursing homes. 

The average CEO salary, excluding bonuses or benefits, was $487,729 across all categories, with bonuses averaging $40.03%.

The average salary for CEOs of companies reporting revenue of less than $40 million was $385,033. CEOs’ average salary was $420,391 for companies reporting revenues between $40 million and $99 million, and it was $598,729 for those reporting revenues of more than $100 million.

Fringe benefits

Most responding companies (62.1%) reported offering executive retirement benefits in the form of 457(b) plans. All participants indicated that they offered 401(k)/403(b)/defined  contribution plans, with 89.5% saying they matched employee contributions.

When it came to incentive plans, 40% of respondents said they have a formal short-term incentive plan for the CEO, with the most prevalent metrics used to determine bonuses including revenue growth and operating margin, followed by quality metrics and employee turnover. Only 28.1% of respondents said they had formal long-term incentive plans. 

Approximately 54% of respondents indicated that they provide severance pay, although only 33.3% indicated that it was contingent on years in service. Professional association dues were provided by 90.9% of respondents. Only 15.6% of respondents said they provided a car, and 33.3% reported they provided a car allowance.

Long-term care insurance is not a popular benefit, with only 23.1% of respondents indicating that they offer it, and among those companies that do, the employee pays the premiums (57.1%). 

The report includes data from 88 multi-facility companies on salaries and total compensation for long-term care, hospital/health systems and home health/hospice agencies. New this year is data from all healthcare types reported together, providing a border perspective on industry trends. The full 90-page report is available for purchase on the HCS website.