Your Board no longer has to guess how your executive compensation levels stack up against your organization's performance. With just a few simple clicks, our new proprietary benchmarking tool provides your Board Compensation Committee and executive leaders with answers to questions such as:
- How does our CEO's cash compensation compare to a group of peers selected by HCHAPS scores similar to ours?
- If we looked at other organizations with similar financial performance to our own, would our COO's pay look high, low, or in line with our performance-based peer group?
- We consider ourselves "best in class". Does our executive compensation reflect the premium that "Iconic Brands" routinely pay? Are we at risk of not attracting the best talent if we don't incorporate the premier value of our brand in our compensation philosophy and program design?
This tool has the capability to reduce uncertainty that can creep into pay decisions when relative performance data is not available. By reducing uncertainty, organizations can reduce risks associated with:
- Overpaying for poor performance
- Not attracting top talent as a first-class brand without the total rewards package to show it
- Comparing your pay to peer organizations that don't enjoy the same strong financial performance as you do
After extensive research and data collection, Aon Hewitt has developed the first tool to tie together system-level compensation data from publicly available 990 tax filings with relevant quality, financial, and operational measures specifically designed for the not-for-profit health care industry. The Health Care Pay and Performance Modeler is unprecedented with its interactive, real-time, state-of-the-art features.
Your Compensation Committee and executives can model a multitude of "What if" scenarios, including:
- What if we selected a peer group based solely on size without regard to quality outcomes—how would our pay compare?
- What if we added a screen for quality outcomes—how does our pay now compare?
- What if we included an additional screen for financial performance—does our compensation still tell the "right" story?
Whether you need to evaluate the alignment of executive pay and performance, adjust peer groups for performance-based benchmarking scopes, modify incentive plan measures, or attract new talent, this tool gives you access to the relevant data your Compensation Committee and executives need to make the best decisions possible. After all, isn't making great decisions what leadership is all about?
Important facts about the tool:
- Peer group selection from more than 400 organizations
- Performance criteria based on Financial, Quality, and Operations Outcomes
- System-level compensatino data updated annually
- Customized reports created quickly
- Easy-to-understand "Dashboard" scoring
- Informs critical decisions on compensation design, executive performance, succession planning, productivity improvements, and much more