Designing compensation programs for the growing number of multiaffiliate health care corporations is a complex task. Compensation structures should be based on responsibility, not organization affiliation, to avoid the perception that corporate-level positions are always worth more than affiliate-level ones. To accomplish this, administrators must identify characteristics shared by key corporate and affiliate positions, including having direct responsibility for implementing board policies and taking actions that directly affect the organization's viability. Position titles and salary structure should reflect similar responsibility levels. When analyzing salary surveys, administrators must determine affiliates' autonomy within the corporation; institutions with direct corporate supervision may have lower compensation levels than free-standing ones. Corporate executive compensation may emphasize fringe benefits rather than base salary; differentials here should also reflect position responsibility. Incentive awards, a growing factor in executive compensation, should be based on predetermined, quantifiable objectives. Awards may vary because corporate, affiliate, and proprietary executives have different goals. The responsibility for the organization's compensation program belongs to the corporate board. It can best discharge this responsibility through an executive compensation committee. The committee's duties include evaluating the CEO, establishing a compensation philosophy, ensuring consistency in program application, and integrating compensation with long-range plans. Committee members must be objective, recognize the organization's need for executive talent, have corporate experience, and view executive compensation in "global" rather than local terms.

Employee Incentive Plans↗

PubMed1986

How trustees' attitudes affect executive compensation decisions.

It's important to examine trustee and CEO attitudes toward executive compensation if the hospital is to retain effective management people and avoid conflicts among members of the board and between the board and the CEO.

Attitude↗

PubMed1985

Career planning for the newly appointed health care supervisor.

Explore the source record for details and available documents.

Administrative Personnel↗

PubMed1985

Tips for tailoring an incentive compensation plan to your employees' needs.

Although trustees usually are not involved in the day-to-day details of executive compensation matters, they do have an important role to play in determining the program's philosophy and in helping to develop specific eligibility and payment criteria.

Economics, Hospital↗

PubMed1984

The impact of trustees on the health care supervisor.

Explore the source record for details and available documents.

Accreditation↗

PubMed1982

Executive compensation committees: an idea whose time has come?

Because executive and managerial talent is a hospital's most valuable asset in a highly competitive climate, boards should be concerned with matters of executive compensation. The major responsibilities of an executive compensation committee are outlined here, including evaluation of the CEO's performance, determination of his compensation level, and establishment of the institution's basic compensation philosophy.

Governing Board↗

PubMed1980

The CEO: ...paying him what he's worth.

With competent hospital executives in increasing demand, boards of trustees can no longer base executive compensation levels on the traditional view of the market. This article reviews the changing forces affecting executive compensation in hospitals and the elements that make up a sound executive compensation program.

Health Facility Administrators↗

PubMed1980