Does Executive Compensation Structure Need an Overhaul?

Greg Pagliuzza
Vice President and CFO
Trinity Regional Health System
Rock Island, Ill.

Our major focus for executives is a base salary with incentives built into it. The core of what we have been doing is very effective. On an annual basis we look at it and say, "What do we need organizationally throughout the whole system to get the outcomes we are focusing in on?"

It is very focused on a grand scale, which means Iowa Health System in total. We set targets of what we need from a quality perspective, from a patient satisfaction perspective. As we progress into population health we are getting incentives tied into that target also.

We are also looking at our benefits package to make it a cafeteria approach. If you know you are going to be five or 10 years in the system you have greater latitude to select certain benefits that would fit someone who doesn't plan on staying within the system. On the other hand, if you think you are going to be a long-termer, then you have options to select your benefits accordingly.

We are trying to create that flexibility to attract different people from the outside while maintaining and supporting people from the inside to stay within the system from a compensation and benefits and opportunity standpoint. All executives are talked about with the CEOs and the head of the system in a very open process so people know who is lined up for the future, who is a keeper.