Eddie Phillips, tax principal, provided expert insight on CEO compensation for an article in the August 2013 issue of Healthcare Finance News. The article, “CEO Compensation is Business Strategy,” discusses the criticism of hospital and health system executive compensation levels that is present in the news, and how hospital boards are responding. For boards, the biggest issue is not “how much is too much or too little,” it is how much is necessary to recruit and retain the needed talent to address the challenges hospitals are now facing.
“Hospitals are incredibly complex organizations to run and you need to pay the position what it deserves to get the right kind of talent because whatever you’re paying the CEOs isn’t nearly as costly as a failed hospital,” said Phillips.
Since the next few years in the healthcare industry are going to be chaotic ones, stability and continuity of hospitals’ and health systems’ leadership will be a critical factor to the organization’s success. That means these organizations will have to balance public concerns and financial challenges as they debate what fair compensation is and what they are willing to do to ensure strong, stable leadership.
To read the full article, click here.
For more information on CEO compensation, please contact Eddie Phillips atephillips@draffin-tucker.com or (404) 220-8494.