Does Executive Compensation Structure Need an Overhaul?
CFO and Vice President of Finance
Regional West Health Services
We are a nonprofit organization and the biggest thing we struggle with is we don't have incentive plans like a lot of the for-profit organizations have that would help to initiate some changes or drive people harder toward some of the strategic goals we have in place. Incentive compensation could do a lot to drive those changes and get them here quicker rather than trying to let things evolve the way they naturally have in the not-for-profit world.
We are not quite where we would like to be within the market itself. So when you are talking about trying to introduce a new compensation component, it is hard to do that when you are not really succeeding with your existing compensation plan. If you have something measurable that people can show they accomplished, it does help support the salaries that are paid.
I don't know that we have some of the same compensation issues in our organization that some of the larger ones do. But there could be some more transparency about how these salaries are determined and support what is accomplished for those salaries.
This article appears in the March 2013 issue of HealthLeaders magazine.
John Commins is a senior editor with HealthLeaders Media.
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