Most non-profit senior living providers conduct annual reviews to evaluate the pay of executives, with a board of director review serving as the most common way to do so.
That’s according to the latest Ziegler CFO Hotline survey from Ziegler. The survey included feedback from 240 respondents.
The majority of respondents, more than 84%, said they evaluate pay for C-suite level executives annually. A little more than 12% said they do so bi-annually.
“We only revisit executive compensation when we need to replace a leader,” wrote one anonymous respondent.
More than half of the survey’s respondents, 58%, said they have a written plan to assess compensation for C-suite execs.
When it comes to evaluations, CEOs are noted to be the primary subject of periodic evaluation and compensation reviews, with 67% of respondents indicating so. Around 23%, however, said that all C-suite level executives are subject to periodic evaluation and compensation reviews.
Utilizing a board of directors was the most popular method for performing a periodic evaluation, with 93 mentions from respondents; while CEOs evaluating their fellow C-suite executives had 63 mentions. Only nine utilized an outside party, and seven indicated a compensation or governance committee of the board was used.
“CEO determines compensation for CFO and COO, though typically follows the level set by the board for the CEO comp,” another respondent wrote.
For the respondents that did note they used a compensation consultant, there is also the concern with how much the services cost. 86% responded that costs would range under $10,000 up to $25,000, with only 3% being above $40,000.
Additionally, with less than half at 43% of respondents that noted they could specify a compensation consultant that was retained, CliftonLarsonAllen was mentioned 13 times.
When determining the total cash compensation for C-suite level executives, responses largely varied, though the median level saw the most responses at 39%. Only 1% noted compensation compensation was above the 90th percentile.
