HEALTH INDUSTRY CHIEFS HIGHEST PAID IN 1989

HEALTH INDUSTRY CHIEFS HIGHEST PAID IN 1989

Health care chief executives were the nation's highest paid bosses in 1989, according to a survey of executive compensation compiled by Forbes Magazine and reported by the Associated Press Monday.

But the information may be misleading, according to Ron Kovernor, vice ppresident of the Healthcare Financial Management Association, an association of financial managers and health care providers based in Washington, D.C.Mr. Koverner said that the "health care" executives referred to in the survey are chiefs of pharmaceutical and hospital supply companies and not health care providers like hospital and nursing home personnel.

"That amount of money is ludicrous for health care providers. They (providers) wish they could make that much," he said.

The survey, to be released Monday for the May 28 issue said that median compensation for health care executives surveyed was $1.42 million.

That edged out entertainment chief executive officers, who earned a median of $1.31 million.

The survey covered 20 industries with 11 of them reporting annual compensations over $1 million. The lowest ranked industry was electrical utility executives with median compensation of $466,000.

The 20 industries surveyed, ranked from highest to lowest paid, were: health at $1.42 million; entertainment, $1.31 million; business services, $1.28 million; aerospace and defense, $1.27 million; energy, $1.15 million; consumer non-durables, $1.14 million; food, drink and tobacco, $1.14 million; forest products, $1.09 million; chemicals, $1.06 million and retailing, at $1.05 million.

Insurance industry executives ranked eleventh, at a $1.05 million median compensation.

Other sectors included in the survey ranked as follows: consumer durables, $982,000; travel, $971,000; computers and communications, $939,000; materials, $936,000; transportation, $915,000; capital goods, $901,000; construction, $857,000; financial services, $645,000; electric utilities, $466,000.

A separate comparison by Forbes ranked the top 10 headquarter cities and their median chief executive income.

The survey showed Stamford, Conn., was the home of the nation's highest paid chief executives.

Other headquarters cities listed and their median chief executive compensation ranked as follows: Stamford, $1.71 million; New York, $1.47 million; Washington, D.C., $1.25 million; Los Angeles, $1.24 million; Houston, $1.24 million; Pittsburgh, $1.22 million; St. Louis, $1.19 million; Columbus, Ohio, $1.16 million; Philadelphia, $1.14 million; and Chicago, $1.11 million.