Report highlights ten Chief Executive Officers who are overpaid in healthcare in U.S

BY PAUL JUNOR

Canadian citizens and permanent residents have access to free public healthcare, while private healthcare can be obtained by anyone with the financial means to pay for it. This universal coverage for medically necessary healthcare services ensures that it is freely available to anyone on the basis of need and not on financial capability.

On the other hand, the United States is considered the world’s most expensive healthcare system according to an article by David J. Stewart titled, “A stark contrast between American and Canadian health care,” (2022). The article outlines some stark differences between the profit-driven American system and the government-funded Canadian system.

Dr. Stewart notes in the article that the U.S spends 200% more each year on Canadians compared to Canada, as well as more on drugs per capita. In addition, it has far more: health care capacity, with more specialists, nurses, hospital beds, CAT scanners, MRI scanners, PET scanners, and radiotherapy treatment units per capita than Canada. This higher capacity can be useful, but it costs a lot of money.

Furthermore, medical procedures in the U.S are higher, which increases healthcare spending and the amount of administrative work in the system drive up costs to nearly five times higher. The fact that insurance companies have to ensure that non-emergency tests, procedures or treatments are approved before they are carried out creates additional costs.

An article in the Canadian Medical Association (2022) reveals that Canada spends more than $300 billion annually on health, which translates to about 13% of GDP; that is the second highest among OECD countries. According to a report from Peter. G. Peterson Foundation (January 2023) the U.S spends about $4.3 trillion, which works out to about $12,900 per person.

In its annual report on February 15^th, 2023, “As You Sow” identified 100 Most Overpaid CEOs among the companies in the S&P 500 index. It analyzed the voting practices of large financial managers, mutual funds and pension funds and noted that shareholder votes on CEO packages provide a critical and underutilized tool for restraining the worst excesses.

In a follow-up article by Moly Gamble titled, “10 Overpaid’ CEOs in Healthcare,” (2023) it analyzed CEO pay relative to total shareholder return to calculate excess pay and enumerate the ratio of CEO pay to that of the median employee.

The ten lists of the healthcare CEOs who made You Sow list include the following:

Ari Bousbib (IQVIA Holdings)

$28.61 million with a CEO-to-worker pay ratio: 205:12

Rosalind Brewer (Walgreens Boots Alliance)

$28.3 million with a CEO-to worker pay ratio of:1,084: 1

Ari Bousbib (IQVIA Holdings)

$28.61 million with a CEO-to-worker pay ratio: 205:1

Alex Gorsky (Johnson & Johnson)

$26.74 million with a CEO-to-worker pay ratio: 297:1

Robert Ford (Abbott Laboratories)

$24.91 million with a CEO-to worker pay ratio: 254:1

Richard Gonzalez (AbbVie)

$23.91 million with a CEO-to-worker pay ratio: 160:1

Marc Casper (Thermo Fisher Scientific)

$21.23 million with a CEO-to-pay ratio: 254:1

Karen Lynch (CVS Health)

$20.38 million with a CEO-to-pay ratio: 458:1

David Cordani (Cigna)

19.87 million with a CEO-to-pay ratio: 297:1

Marc Miller (Universal Health Services)

$14.02 million with a CEO-to-pay ratio: 309:1