Hospital recruiting | Business & Finance homework help
The compensation of the chief executive of the health care organization whose board you are on should be determined by considering multiple factors. Firstly, market rate comparisons should be made to ensure that they are being offered a salary commensurate with their industry peers. This can include analysis of median salaries and benefits among similar positions at other organizations as well as performance-based bonuses that may reflect the individual’s ability to exceed expectations.
In addition, consideration should be given to any experiential advantages or challenges associated with this particular role. For example, if there is a large learning curve or extensive travel involved in this position, then it may warrant additional reward for taking on such an undertaking.
Finally, gauging how much value the executive brings to the organization through past successes and future projections will also influence an appropriate pay scale. This could include rewards for leading initiatives that increase efficiency or save money while also helping to differentiate their candidacy from others who may apply for similar roles in competing organizations. Ultimately, these factors should all help inform decisions regarding what constitutes fair and equitable compensation for a health care organization’s chief executive officer.