Aligning Executive Compensation with the New Health Care Paradigm

The skills of reform-era chief executives must blend and balance proven capabilities in leadership, strategy development and execution with the capacity to guide their hospitals and health systems through unprecedented transformational change.  A carefully constructed, performance-based incentive compensation program, overseen by an engaged and informed board executive compensation committee, can support success in this role.

The Center’s new report, Aligning Executive Compensation with the New Health Care Paradigm, brings together several resources developed by Sullivan, Cotter and Associates, Inc. that provide insight and action items for executive compensation committees.

This three-part publication focuses first on the changing role of incentive compensation as a tool to focus executive attention on the organization’s most important priorities. Putting more executive pay at risk, expanding the types of measures used to evaluate incentive compensation and combining use of annual and longer-term incentive plans are some steps boards are taking to ensure effective management of day-to-day operations and accomplishment of multi-year strategies and goals. Part two lays out a 10-point agenda for the executive compensation committee to ensure it adopts best practices, aligns compensation with the changing environment and meets regulatory requirements.  The third section dives into a contemporary challenge for these committees, selecting and maintaining an appropriate peer group to use as a benchmark in making executive compensation decisions.

For more information or to order, contact the Center at 888-540-6111, email info@americangovernance.com, or visit the AHA Online Store.

CHG Members can download a PDF by clicking here »