“And as far as compensation, the Compensation Committee looks at the CEO’s job performance, as well as the salaries of other CEOs around the state,” he said.
“It’s important that the salary is competitive with other institutions because it’s difficult to attract professional leaders who will improve the quality of care.
“It’s difficult being CEO,” Johnston continued, “because you’re the head of a complex and multi-faceted institution.”
And being a rural hospital plays a role in CEO recruitment as well, since not everyone may want to live in a less metropolitan setting.
“The recruiter has been very helpful with that because they match people to the opportunity you have,” he said. “But it can create a smaller (talent) pool.”
Johnston said Alice Hyde tries to keep its compensation in the 50th percentile — “not too high or low but what we feel is appropriate and necessary to attract a candidate who will make the hospital better.”
CVPH MEDICAL CENTER
Hospital President Stephens Mundy has been at CVPH for 10 years and was paid $749,563 in salary, bonuses and other compensation in 2010.
His base salary for 2013 is $478,421, said Paul Sands, chair of Community Providers Inc., the facility’s parent company.
“Because last year was a difficult year, and we expect this year to be better, Stephens will be paid no bonus this year,” Sands said.
“The board also decided across that board that no one at the management level will be getting bonuses this year.”
Sands said the hospital board does not take its responsibility lightly when selecting and compensating its CEO.
He said the board appoints a Compensation Committee made up of the board chair, a second board member, the hospital’s treasurer and a member of the Executive Committee, who work with a national consulting firm to review hospitals around the country that are comparable to CVPH in size, economic status, population mix and other factors.