CEOs and their boards must build and sustain vibrant, trust-based relationships in order to be successful in today’s complex and fast-paced health care world. That trust requires leadership excellence and clear performance accountabilities that are appropriately rewarded using responsible compensation assessment policies and procedures.
Questions Your Board Should Ask
The board should consider the following questions about the CEO compensation and performance evaluation process:
- Does the board have a clear CEO compensation and evaluation process in place?
- Does the board have clearly defined CEO goals and expectations that are tied to the organization’s mission and vision? Are they linked to the CEO’s compensation?
- Is the board confident that the CEO is appropriately compensated compared to his or her peers?
- Is the CEO’s compensation tied to his or her performance in meeting specific goals? Does the CEO know those goals in advance, and measure progress throughout the year?
- When it is time for the CEO’s annual review, is the board or CEO is surprised by the outcome?
- Is the board confident about its “rebuttable presumption”?
- Finally, when the board thinks about its overall compensation and evaluation process, does it use the process as an opportunity to strengthen the relationship between the board and CEO and help improve the CEO’s performance?
| BoardBRIEF – CEO Compensation and Evaluation |
| BoardBRIEF – Critical Conversations: Leadership Discussions the Board Should Have Now |
| Sample Policies and Procedures – Executive Compensation |
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