For Board Members
The work of hospital and health systems boards is increasingly complex. Governing boards need to strengthen their processes and procedures and implement best practices to meet the coming challenges. Below are questions for three areas where the board, rather than the CEO, must take the lead. These questions will help boards begin the discussion of best practices:
Executive Compensation & Contracts
- Is the Philosophy in alignment with the organization’s mission and strategy?
- Does the current process address all steps necessary to establish the rebuttable presumption of reasonableness?
- Does the process evaluate the reasonableness of the total compensation package for all required positions (at a minimum the CEO, COO, and CFO)?
Goal Setting & Performance Evaluation
- Does the Board regularly solicit input from its members and other constituents about the senior executive’s leadership qualities and performance?
- Do the goals move the organization in our strategic direction?
- Is the goal setting process effectively integrated and link mission to action?
Leadership Assessment, Development, & Succession
- How ready are we if the CEO isn’t available to lead tomorrow?
- How deep is our knowledge of internal succession candidates? Not just the executive team, but also one level down.
- Do we know which candidates may be wooed away by the competition?