Future of Work
Top Considerations for Healthcare Compensation Committees Today
To retain top leadership, tax-exempt healthcare organizations need to reevaluate their incentive plans. Learn the top things for boards to consider.
The job of a compensation committee has become increasingly complicated in today’s world—especially in the tax-exempt healthcare sector. Committee members are tasked with crafting short- and long-term incentive plans that motivate top leadership to perform their best and guide their organization in offering premier healthcare services.
However, in reality, these plans often end up focusing on the operational aspects of the business. These metrics merely maintain the status quo, while putting much of the pressure to perform on lower management.
Healthcare is in a state of flux right now. To stay relevant and offer the best quality of care to consumers, compensation committees should reevaluate how leadership development, assessments, and expectations are defined in an incentive plan.
The Top Issues for a Compensation Committee to Consider
In this report, we’ll explain the specific components that a committee can explore to create a culture of transformational, progressive leaders who enact long-term change within an organization. These include reassessing:
- Clawback policies: Should your organization consider a clawback policy? If so, does the policy apply to only top executives? What actions constitute a clawback policy?
- Retention awards: How can they be awarded in a fair and equitable way? Are there additional ways to make sure other leaders (who don’t receive any financial incentives) are also acknowledged?
- Including ESG/DEI-specific metrics: How can ESG (environmental, social, and governance) and DEI (diversity, equity, and inclusion) components be woven into incentive plans? What’s the best way to strike a balance of effective quantitative and qualitative metrics?
- The “right” market for drawing data: Could it be beneficial to identify multiple views of market data rather than just one? How can you identify if your data is defensible to stakeholders?
- CEO succession vs. progression: What would it take to create a development track for rising leaders within your organization? Would a team of complementary leaders benefit your company?
Download our report to learn:
- How to avoid stumbling on CEO transitions
- The importance of creating an environment built on trust, professional development, and purpose when it comes to retaining top talent
- Why incentive plans are particularly important for tax-exempt healthcare organizations
