Boston Globe Quotes David Williams on Hospital CEO Salaries

It never goes down well with the public when the Globe reports leaders of non-profit organizations making millions of dollars per year. Yet, these are actually large companies that compete for talent nationally and can’t offer stock or other goodies available in the for-profit sector.

David Williams laid out the case in (Most hospital CEO pay packages in Massachusetts rose in 2024, new records show)

“Compensation is high in absolute terms, but these are very large and complex organizations to run,” said David E. Williams, president of Health Business Group, a Boston management consulting firm. “They have to attract talent in a national market, which is the main reason salaries go up.”

It was also the year that Steward Health Care, a for-profit hospital chain, stumbled into bankruptcy in a notorious collapse, leading to the sale of six of its Massachusetts hospitals and the closure of two others.

“This put huge stress on surrounding hospitals contending with the ripple effects, while souring public perception of executive pay across the board, even for nonprofits,” Williams said.