How CFOs can help compensation committees make better decisions

Members of hospital board compensation committees face growing risks in making executive compensation decisions. These risks include scrutiny from outside regulators, pressure to ensure that executives live up to performance expectations, and the need to craft compensation packages capable of attrac...

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Bibliographic Details
Published in:Healthcare financial management 2010-09, Vol.64 (9), p.128, 130, 132-132
Main Authors: Bolster, C J, Quirk, Bill
Format: Article
Language:English
Subjects:
Business metrics
Chief financial officers
Decision Making
Executive compensation
Financial Management, Hospital - economics
Governing Board
Health administration
Hospital Administrators
Hospitals
Humans
Leadership
Professional Role
Salaries and Fringe Benefits - trends
United States
Online Access:Get full text
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Summary:Members of hospital board compensation committees face growing risks in making executive compensation decisions. These risks include scrutiny from outside regulators, pressure to ensure that executives live up to performance expectations, and the need to craft compensation packages capable of attracting, retaining, and motivating the most talented leaders. Some of the highest performing hospital CFOs have already become significant contributors to compensation discussions, but CFOs can add even more value to the process by working with their colleagues in the C-suite to expand their role as trusted advisers to their compensation committees. As board compensation committees turn their attention to performance issues. CFOs can play an important role by ensuring that the highest performing leaders are rewarded commensurate with their achievements, while potential recruits know their accomplishments will be measured accurately and compensated fairly. Healthcare CFOs occupy a unique and privileged organizational position that allows them to add immense value to board deliberations on compensation issues.
ISSN:0735-0732
0735-0732