Executive Compensation at AdventHealth (2021)

AdventHealth (formerly known as Adventist Health System until 2019 when the 501 (c) (3) “rebranded” itself) is one of the largest non-profit health care providers in the United States with nearly 51 hospitals and hundreds of care sites in 9 states. Based in Altamonte Springs, Florida, AdventHealth is a very large system with dozens of separate 501 (c) (3)’s for the hospitals, physician care, patient care, and more.

This post looks at the executive compensation at  Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), the tax-exempt, non profit organization that provides management, leadership, and oversight to all the subsidiaries.  It is important to note there are dozens of other related and affiliated non-profits and for profit organizations  related to AdventHealth that are not covered in this post.

AHSSHC

AHSSHC provided executive leadership and other professional support services to the subsidiaries and affiliates of its healthcare network.  Consequently, most revenue is from affiliated organizations within the network who pay AHSSHC for management and reimbursement for salaries, wages, and other expenses.  However, it is important to note AHSSHC has more than $404 million in net assets (down from $765 million at the beginning of the year primarily due to purchase of hospital assets).

In 2021, AHSSHC reported having 6,074 employees who received $694 million in compensation (up from 5,089 employees who received $613 million or an average of $120,000 in 2020), which equates to an average compensation of $114,000.

Think about the concept of having nearly 6,100 employees to oversee 51 hospitals (who all have their own CEO, COO, CFO, and administrative staff) and other service centers (who have their own management, billing and administrative staff). If we just consider hospitals, that’s about 120 employees for every hospital over and above the hospital’s own management and administrative staff.  How is it that healthcare has become so complicated that an organization needs additional sets of CEO’s, COO’s, CFO’s and administrative staff to oversee CEO’s, COO’s, CFO’s and administrative staff?

1,740 employees received more than $100,000 in compensation with the 20 most highly compensated employees listed below:

• $4,728,689:  Terry D Shaw, Director/President/CEO
• $3,829,282:  Randall L Haffner, Director/SEVP/CEO Multi-state Division (end 9/20)
• $2,805,436:  Paul Rathbun, Director (beg 9/18; end 9/20). SEVP/CFO
• $2,784,637:  Penny Johnson, President/CEO SW Region
• $2,721,230:  Daryl Tol, SEVP/CEO Central Florida Division, Director (end 9/20)
• $2,327,238:  Douglas Hilliard, SVP, Sr Finance Officer AH Orlando
• $2,230,701:  David Banks, EVP, Chief Strategy Officer
• $2,210,301:  Jayne Bassler, SVP, Epic Transformation
• $2,081,308:  Michael Schultz, SEVP, CEO West Florida Division (end 12/21)
• $1,989,227:  Michael Thompson, CEO, IHS Central Florida Region
• $1,892,657:  Randall Surber, President/CEO AH Sebring
• $1,844,646:  David Moorhead, SEO, Chief Clinical Officer
• $1,828,275:  Brent G Snyder, Director/ EVP/CIO (end 9/20)
• $1,591,928:  Eddie Soler, EVP/Senior Finance Officer
• $1,568,575:  Sandra K Johnson, EVP/Chief Admin Officer (end 12/21)
• $1,556,259:  Jeffrey Bromme, EVP, Chief Legal Officer
• $1,279,995:  Kenneth Bacon, SEVP/CEO Multi-State Division (beg 3/21)
• $1,242,256:  Bryan Stiltz, EVP, Business Units
• $1,183,933  :  Olesea Azevedo, SVP, Chief HR Officer
• $  775,844  :  Patricia Celano, SVP/Assoc Chief Clinical Officer

The 20 most highly compensated employees received $42 million, which equates to an average compensation of $2.1 million.

15 of the 20 (75%) most highly compensated employees are male while 5 of the 20 (25%) are female. Of the 10 most highly compensated employees, 8 are male while 2 are female.  It is also important to note AHSSHC has 22 voting members of a governing body, 15 of whom are independent, although the Form 990 (2021) lists 32 directors (due to timing differences), 29 of whom are male (91%) and 3 of whom are female (9%).

5 of the most highly compensated employees received $79 million in compensation over the past 6 years:

Terry Shaw: $22 million

• 2021:  $4,728,689
• 2020:  $3,198,492
• 2019:  $4,712,219
• 2018:  $4,495,072
• 2017:  $3,538,936
• 2016:  $2,113,738

Randall Haffner:  $18 million

• 2021: $3,829,282
• 2020:  $3,085,628
• 2019:  $3,041,828
• 2018:  $3,273,659
• 2017:  $2,654,661
• 2016:  $1,973,223

Daryl Tol:  $13 million

• 2021: $2,721,23
• 2020:  $2,190,031
• 2019:  $2,150,623
• 2018:  $2,073,454
• 2017:  $1,573,978
• 2016:  $1,413,783

Michael Schultz:   $12 million

• 2021: $2,081,308
• 2020:  $1,639,497
• 2019:  $1,908,196
• 2018:  $2,471,106
• 2017:  $1,919,025
• 2016:  $1,592,650

Paul Rathbun:  $14 million

• 2021: $2,805,436
• 2020:  $4,569,104
• 2019:  $1,843,957
• 2018:  $1,949,110
• 2017:  $1,576,022
• 2016:  $1,274,006

AHSSHC paid for first class or charter travel, travel for companions, health of social club dues or initiation fees, discretionary spending accounts, and gross up payments and tax indemnification. For details on these expenses, see Form 990, Schedule J, Part III, Supplemental Information.  In addition, information on the SERP and SEDB (Senior Executive Dean Benefit) Plans are also detailed.

To read the IRS Form 990 (2021), click here.