Executive Compensation
Northumberland Hills Hospital has a comprehensive and rigorous executive performance management program for its senior executives. Each year, members of the senior executive team have their performance measured through metrics that are tied directly to their annual compensation. A special sub-committee of the Hospital's Board of Directors reviews the compensation and performance of the Chief Executive Officer (CEO) and Chief of Staff (COS) and makes an assessment of whether or not they have succeeded in achieving annual goals and objectives. This yearly evaluation is also tied to compensation.
Performance Management Program Components
The performance management program integrates and aligns the following key components into one program:
1. Evaluation & Compensation Committee of the Board
The Evaluation & Compensation Committee of the Board of Directors oversees activities related to the performance and compensation of the CEO and the COS. The CEO is responsible and accountable for the performance and compensation of the senior executive team.
2. Performance Evaluation Program
Annually the performance of each senior leader is measured against leadership competencies and annual goals. The performance evaluation process includes a 360-measurement component that solicits feedback from superiors, subordinates and peers.
3. Compensation Program
CEO and COS compensation are reviewed and recommended by the Evaluation & Compensation committee and approved by the Board of Directors. Compensation for senior executives is determined by the CEO. In all cases, compensation is determined through performance metrics as well as a robust extenral benchmarking analysis.
4. Performance-based Compensation
As required by the Excellent Care for All Act, a portion of the executive compensation is tied to the achievement of goals within the annual Quality Improvement Plan. Quality improvement initiatives have been specifically linked to executive compensation, with at least one initiative from each quality dimension of Safety, Effectiveness, Access and Patient-Centred.
The purpose of performance-based compensation is to:
-
Drive performance and improve quality care
-
Establish clear performance expectations
-
Create clarity about expected outcomes
-
Ensure consistency in application of the performance incentive
-
Drive transparency in the performance incentive process
-
Drive accountability of the team to deliver on the Quality Improvement Plan
-
Enable team work and a shared purpose
Specific details of the performance-based compensation component can be found in the annual Quality Improvement Plan.