Executive compensation programs are evolving to meet the needs of business transformation in hospitals and health systems, according to a 2017 SullivanCotter survey.
The survey provides benchmarking data on executive compensation trends and pay practices, the largest of its kind for nationwide hospitals and health systems.
The data draws from over 2,000 organizations, representing nearly 30,000 executives and managers.
Here are four findings:
1. Executives with skills to lead transformation face greater demand. Organizations record higher increases in compensation for health system leaders focusing on transformation.
2. Value-based incentives are on the rise. Annual incentive programs are placing increased emphasis on value-based measures.
3. Long-term incentive plans are becoming more prevalent. Organizations, particularly among larger health systems, are increasingly using long-term incentive plans.
4. Organizations are trying to strike a balance between market practice and business needs in their compensation programs. Programs utilizing monetary and non-monetary approaches, such as special retention awards, individualized performance-based incentives and talent development activities, are increasingly incorporated to support executive team stability, talent management and succession.