Shifting List of Top-Paid Skilled Nursing CEOs Shows Industry Volatility
What a difference a year makes.
In 2017, Skilled Nursing News profiled the salaries of the seven highest-paid CEOs at the biggest skilled nursing companies for the previous year.
Of those executives, three didn’t make it to the 2018 roundup of the highest-paid CEOs — but that’s mainly a function of the upheaval that’s shaken the skilled nursing industry since last summer.
Benjamin Breier, the president and CEO of Kindred Healthcare (NYSE: KND), was included last year because of the company’s significant skilled nursing assets at the time. But the company struck a deal to sell its skilled nursing assets in 2017, and in December announced a definitive agreement to be acquired by TPG Capital; Welsh, Carson, Anderson & Stowe (WCAS); and Humana Inc. (NYSE: HUM) for about $4.1 billion in cash.
As a result, Breier — who took home the highest baseline salary of $1,045,098 in 2016 — isn’t on the list this time around.
Quality Care Properties (NYSE: QCP), whose then-CEO Mark Ordan had the highest overall compensation package in 2016, also didn’t make the list this year. His company was acquired in April by a joint venture between Welltower Inc. (NYSE: WELL) and non-profit health system ProMedica in a $1.95 billion all-cash deal.
Care Capital Properties CEO Raymond Lewis is also gone from this year’s roster, after the company merged with Sabra Health Care REIT, Inc. (NASDAQ: SBRA) last year. Lewis made $5,482,225 in total compensation in 2016, No. 4 on the list overall.
Finally, SNN left Paul Ormond, the former CEO of HCR ManorCare, off the list, despite his being set to receive a settlement of more than $100 million related to deferred pension obligations — but not his ongoing employment. He exited the company in September, before the struggling provider filed for Chapter 11 bankruptcy protection; ProMedica now owns ManorCare as part of the Welltower-QCP deal.
This year, SNN focused on companies that are either skilled nursing operators or real estate investment trusts (REITs) that are focused on health care with skilled nursing as a core investment. As a result, the list excludes companies that have significant assets across a wide range of industries.
Both lists draw from the most recent annual proxy statements filed by public senior living companies and investors with the Securities and Exchange Commission (SEC).
Here’s a complete breakdown of the top earners:
C. Taylor Pickett, the CEO of REIT Omega Healthcare Investors (NYSE: OHI), made the most overall in 2017 at approximately $5.98 million.
In terms of 2017 base salary, George Hager Jr., the CEO of Genesis Healthcare (NYSE: GEN) carried the day with $888,908 — the highest of any of the eight executives listed.
It’s important to note that tracking executive pay isn’t an exact science, with some room for variation: For instance, the valuation for stock awards and options is determined on the day they’re awarded, rather than cashed out, The Wall Street Journal has noted.
Written by Maggie Flynn