Executive Compensation of the Most Highly Compensated at Advent Health (2022)

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 more than 50 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 so the primary source of income is from the related/affiliated organizations.  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 $300 million in net assets (down from $400 million at the beginning of the year primarily due to unrealized losses on investments).

AHSSHC reported total revenue of $1.6 billion, most of which came from related/affiliated organizations who paid management and other fees.

In 2022, AHSSHC reported having 6,808 employees who received $777 million in compensation (up from 6,074 employees who received $694 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 7,000 employees to oversee 52 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 130 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?

It is also important to point out AHSSHC paid $133 million to CSI for staffing services in 2022.

1,965 employees received more than $100,000 in compensation with the 22 most highly compensated employees listed below:

• $5,678,983:  Terry D Shaw, Director/President/CEO
• $3,906,271:  David Ottati, SEVP/CEO W Florida Division
• $2,853,096:  David Banks, EVP, Chief Strategy Officer
• $2,747,966:  Paul Rathbun, SEVP/CFO
• $2,610,276:  Randall L Haffner, Director/SEVP/CEO Central Florida Division
• $2,027,198:  Todd Goodman, SVP/CFO Central Florida Division
• $1,911,910:  Kenneth Bacon, SEVP/CEO Multi-State Division
• $1,870,874:  Patricia Celano, SVP/Assoc Chief Clinical Officer
• $1,787,263:  Herb Keller, SVP, Applications and Tech AIT
• $1,769,015:  David Moorhead, SEO, Chief Clinical Officer
• $1,631,184:  Bruce Christian, CEO, Bolingbrook/Glen Oaks (end 10/22)
• $1,555,637:  Jeffrey Bromme, EVP, Chief Legal Officer
• $1,510,244:  Brent G Snyder, Director/ EVP, CIO
• $1,459,929:  Bruce Bergherm, CEO, West Florida Division
• $1,410,088:  Edward Laue, VP, CMO THH Mansfield (end 7/22)
• $1,314,783:  Bryan Stiltz, EVP, Physician Enterprise
• $1,221,848:  Olesea Azevedo, SVP, Chief People Officer
• $1,112, 951:  Sandra K Johnson, EVP/Chief Admin Officer (end 12/21)
• $  792,136:  Daryl Tol, SEVP/CEO Central Florida Division (former)
• $  772,254:   Vickie White, SVP,Chief Brand and Consumer Officer
• $  724,470:  Eddie Soler, Former EVP/Senior Finance Officer
• $  576,808:  Michael Schultz, SEVP, CEO West Florida Division (end 12/21)

The 22 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%).

The 22 most highly compensated employees received $180 million in compensation from 2016-2022 (note: highly compensated employees in 2016-2021 but not in 2022 are not listed below):

Terry Shaw:  Total Compensation 2016-2022: $28.5 million

• 2022:  $5,678,983:
• 2021:  $4,728,689
• 2020:  $3,198,492
• 2019:  $4,712,219
• 2018:  $4,495,072
• 2017:  $3,538,936
• 2016:  $2,113,738

David Ottati:  Total Compensation 2022:  $4 million

• 2022:  $3,906,271

David Banks:  Total Compensation 2016-2022:  $13 million

• 2022:  $2,853,096
• 2021:   $2,230,701
• 2020:  $1,676,366
• 2019:  $1,448,579
• 2018:  $1,565,029
• 2017:  $1,317,278
• 2016:  $1,908,554

Paul Rathbun:  Total Compensation 2016-2022:  $17 million

• 2022:  $2,747,966
• 2021:  $2,805,436
• 2020:  $4,569,104
• 2019:  $1,843,957
• 2018:  $1,949,110
• 2017:  $1,576,022
• 2016:  $1,274,006

Randall Haffner:  Total Compensation 2016-2022:  $20 million

• 2022: $2,610,276
• 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:  Total Compensaion 2016-2022:  $13 million

• 2022:  $ 792,136
• 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:   Total Compensation 2016-2022:  $12 million

• 2022:  $  576,808
• 2021:  $2,081,308
• 2020:  $1,639,497
• 2019:  $1,908,196
• 2018:  $2,471,106
• 2017:  $1,919,025
• 2016:  $1,592,650

Todd Goodman:  Total Compensation 2022:  $2 million

• 2022:  $2,027,198

Kenneth Bacon:  Total Compensation 2021-2022:  $3 million

• 2022:  $1,911,910
• 2021:  $1,279,995

Patricia Celano:  Total Compensation 2020-2022:  $3.5 million

• 2022:  $1,870,874
• 2021:   $  775,844
• 2020:  $  707,200

Herb Keller  Total Compensation 2022:  $1.8 million

• 2022:  $1,787,263

David Morehead:  Total Compensation 2017-2022:  $9 million

• 2022:  $1,769,015
• 2021:   $1,844,686
• 2020:  $1,613,817
• 2019:  $1,439,068
• 2018:  $1,146,165
• 2017:  $1,931,858

Bruce Christian:  Total Compensation 2022:  $1.6 million

• 2022:  $1,631,184

Jeffrey Bromme:  Total Compensation 2016-2022:  $8 million

• 2022:  $1,555,637
• 2021:  $1,556,259
• 2020:  $1,310.505
• 2019:  $1,198,912
• 2018:  $1,284,866
• 2017:  $1,133,449
• 2016:  $  961,350

Brent Snyder:  Total Compensation 2016-2022:  $11 million

• 2022:  $1,510,244
• 2021:   $1,828,275
• 2020:  $1,436,268
• 2019:  $1,479,981
• 2018:  $1,665,667
• 2017:  $1,491,499
• 2016:  $1,407,470

Bruce Bergherm:  Total Compensation 2022:  $1.5 million

• 2022:  $1,459,929

Edward Laue:  Total Compensation 2022:  $1.4 million

• 2022:  $1,410,088

Bryan Stiltz:  Total Compensation 2020-2022:  $3.5 million

• 2022:  $1,314,783
• 2021:   $1,242,256
• 2020:  $1,051,552

Olesea Azevedo:  Total Compensation 2017-2022:  $6 million

• 2022:  $1,221,848
• 2021:   $1,183,933
• 2020:  $  970,346
• 2019:   $  903,777
• 2018:  $  783,771
• 2017:  $  733,724

Sandra K Johnson:  Total Compensation 2016-2022:  $9 million

• 2022:  $1,112,951
• 2021:  $1,568,575
• 2020:  $1,319,748
• 2019:  $1,681,059
• 2018:  $1,690,747
• 2017:  $1,555,017
• 2016:  $1,081,272

Vickie White:  Total Compensation 2022:  $0.8 million

• 2022: $772,254

Eddie Soler:  Total Compensation 2016-2022:  $10 million

• 2022:  $  576,808
• 2021:  $1,591,928
• 2020:  $1,397,998
• 2019:  $1,491,785
• 2018:  $1,685,648
• 2017:  $1,572,556
• 2016:  $1,330,961

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 (2022), click here.