Executive Performance and Compensation

Executive Performance and Compensation / en Sat, 26 Apr 2025 00:07:04 -0500 Tue, 08 Apr 25 06:11:50 -0500 The Reimagined CEO: Leading Health Care into Its Next Era /aha-center-health-innovation-market-scan/2025-04-08-reimagined-ceo-leading-health-care-its-next-era <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/The-Reimagined-CEO-Leading-Health-Care-into-Its-Next-Era.png" data-entity-uuid="479cd75f-fccd-4fbe-abe6-c31d78f9cbb9" data-entity-type="file" alt="The Reimagined CEO: Leading Health Care into Its Next Era. A CEO's head in profile with the brain containing gears connected to outside gears supplying all the data being input into the brain." width="1200" height="646">Health care CEOs are leading in a time unlike any other in recent memory — where complexity is the norm and the expectations are extraordinary. The role, once steeped in operational oversight and incremental improvement, has evolved rapidly into a multifaceted, future-facing leadership challenge. From managing rapid consolidation to engaging political stakeholders, from cultural stewardship to digital transformation, the modern CEO’s mandate is not just to steer the ship — but to redesign the vessel while in motion.According to WittKieffer’s 2025 report <a href="https://wittkieffer.com/insights/healthcare-ceo-reimagined" target="_blank" title="WittKeiffer: Healthcare CEO Reimagined: Leading Healthcare’s Next Chapter">“Healthcare CEO Reimagined,”</a> the traditional CEO archetype is being redefined fundamentally. Drawing on extensive interviews with top health system leaders, the report highlights a set of paradigm shifts and leadership tenets for CEOs to consider and offers a road map for navigating health care’s accelerating transformation.<h2>1 | From Visionary to Agile Architect</h2>Strategic agility now defines effective leadership, according to the report. While a long-term vision remains important, CEOs increasingly are required to flex their strategies in real time — responding to both evolving market conditions and internal dynamics. “We must be willing to act quickly, learn fast and be comfortable with occasional missteps,” said Tom Gessel, CEO of Oregon-based Asante health system, in the report. Leaders are expected to lead transformative initiatives while maintaining operational discipline and rallying stakeholders around a shared sense of purpose.<h2>2 | Scaling Strategically, Not Just Structurally</h2>Health care consolidation has created vast, complex systems that span geographies and service lines. Yet, as CEOs like Dennis Murphy of IU Health note, growth without focus can lead to inertia. “Goal setting is not just about driving the organization forward; it is about decluttering it from negative inertia,” Murphy said.The real challenge lies in balancing scale with agility, according to the WittKieffer report. CEOs must align systemwide advantages — like technology investments and operational efficiencies — with local relevance. “Essentiality” — becoming an indispensable provider in a given community — emerges as a critical goal. Tailored strategies that account for regional needs, consumer preferences and competitive dynamics no longer are optional but are essential for long-term viability, the report concluded.<h2>3 | Culture as a CEO’s Most Enduring Legacy</h2>Perhaps no responsibility looms larger than cultural leadership, according to the report. “Culture starts with the CEO,” Christopher Howard, CEO of Sharp HealthCare, told WittKieffer. “My most significant impact is dedicating myself to our organization’s culture.”Today’s CEOs must navigate cultural tensions — accountability vs. mission, excellence vs. agility, scale vs. identity. These aren’t opposites to resolve but dynamics to balance. As organizations grow, CEOs increasingly are held accountable not just for preserving culture, but also for strengthening and spreading it across their networks, the report states.Michael Slubowski, CEO of Trinity Health in Michigan, envisions a culture where “120,000 team members improve the care experience without waiting to be asked or having to be told.” That kind of empowerment requires relentless communication, trust-building and authenticity from the top.<h2>4 | Developing the Next Generation</h2>Leadership development is no longer a human relations function; it’s a CEO imperative. “Building a strong, competent team is the CEO’s most essential skill,” said Brian Erling, M.D., president and CEO of Renown Health. The WittKieffer report underscored that high-performing leaders build succession pipelines, mentor emerging talent and foster environments that balance challenge with support.The report also highlights the need for strategic succession planning and skill set expansion, both of which help leaders bridge the gap between legacy systems and emerging models. The best CEOs create what the report calls “gentle pushes and soft landings,” enabling continuous growth without burnout.&nbsp;<h2>5 | Mastering External Engagement</h2>In an increasingly politicized and interconnected world, external engagement has shifted from a “nice-to-have” to a strategic imperative. WittKieffer suggests that CEOs must build coalitions, not just manage operations. This includes sustained advocacy, community partnerships and brand leadership.“Advocacy work now demands priority status as one of the ‘big boulders’ that must come first,” the report notes. CEOs must be visible in their communities, present with policymakers and trusted by stakeholders — internally and externally. Their reputations now are inseparable from that of the institutions they lead.<h2>6 | Essential Tenets: What Sets Great CEOs Apart</h2>WittKieffer distills the most impactful leadership traits into six essential tenets:<ul><li>Vision across multiple horizons — balancing near-term needs with long-term foresight.</li><li>Catalytic decision-making — making bold decisions amid ambiguity.</li><li>Adaptability and resilience — maintaining focus while embracing change.</li><li>Self-mastery and a learning mindset — committing to personal growth and reflection.</li><li>Emotional intelligence — leading with humility, empathy and listening.</li><li>Galvanizing communication — inspiring action through clarity and consistency.</li></ul>The CEO role never has been more complex or more vital to the future of health care. As leaders confront a world of accelerating change, those who thrive will be the ones who adapt most effectively, lead most authentically and empower their organizations at every level, according to the report.In the words of Advocate Health CEO Eugene A. Woods quoted in the report, the goal is to “culturally unleash a fearless curiosity and unshakable optimism” as the antidote to uncertainty.</div><div class="col-md-4"><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 08 Apr 2025 06:11:50 -0500 Executive Performance and Compensation Transformational Executive Retirement Benefits — TriHealth Shares Its Approach May 26 /education-events/transformational-executive-retirement-benefits-trihealth-shares-its-approach <div class="webreplay"> .webreplay{ border: solid 2px #777; padding: 15px 5px; margin: 0 0 10px 15px; } @media (min-width:360px){ .webreplay{ min-width: 290px; float: right; } } <h2>On-demand Webinar</h2> &nbsp; MktoForms2.loadForm("//sponsors.aha.org", "710-ZLL-651", 1157);</div> Transformational Executive Retirement Benefits — TriHealth Shares Its Approach&nbsp; Wednesday, May 26, 2021&nbsp; 1&nbsp;-&nbsp;2&nbsp;p.m.&nbsp;Eastern;&nbsp;noon -&nbsp;1&nbsp;p.m. Central; 10&nbsp;-&nbsp;11&nbsp;a.m.&nbsp;Pacific&nbsp;&nbsp; Cash compensation — both salary and incentives — may create the lure of attraction, but innovative compensation packages, including transformational retirement benefits, can serve to attract and retain your key leadership execs.&nbsp;&nbsp; During this webinar, you’ll hear how the competitive landscape for qualified senior leadership has changed and why innovative executive benefit packages are crucial. Leading Ohio health care system TriHealth will share how it revamped its executive compensation retirement program to attract and retain its executive staff by offering a significantly larger and income-tax-free benefit.&nbsp;&nbsp;&nbsp; Hear details of the new Loan Regime Split Dollar program, the only type of executive retirement benefit that can provide an entirely income-tax-free benefit to the participant, thus dramatically and substantially increasing their retirement benefits — in addition to immediately shifting employer plan contributions from an expense and a liability to an interest-accruing asset on their books (even on prior plan contributions if done correctly), and allowing the organization to recover 100% of every dollar funded into the program, with interest.&nbsp;&nbsp;&nbsp;&nbsp; You’ll hear details on this innovative new Executive Retirement Program offering — from concept to financial modeling, to legal considerations, to communication, to plan administration and support — the roadmap from start to finish on how to make a transformation like this happen for your organization.&nbsp; Attendees Will Learn:&nbsp; <ul> <li>The competitive landscape for qualified senior leadership and why executive benefits are crucial for retention.&nbsp;</li> <li>How TriHealth recognized and incorporated this new retirement plan benefit for its executive team.&nbsp;&nbsp;</li> <li>How loan regime split dollar works and how its design has changed from older plans in the past.&nbsp;</li> <li>A step-by-step approach to implementing this executive retirement plan in your organization.&nbsp;</li> <li>How you can shift from 457(f)/SERP plans to this type of plan, to dramatically improve the executives’ benefits as well as your organization’s financials.&nbsp;</li> </ul> Speakers:&nbsp; &nbsp; Andrew DeVoe&nbsp; Executive Vice President &amp; Chief Financial Officer&nbsp; TriHealth&nbsp; Cincinnati, Ohio&nbsp;&nbsp; &nbsp; Jim Hebets, CLU&nbsp; President&nbsp; The Hebets Company&nbsp; Phoenix, Ariz.&nbsp; &nbsp; Jamie Hebets&nbsp; Senior Vice President&nbsp; The Hebets Company&nbsp; Phoenix, Ariz.&nbsp; Thu, 15 Apr 2021 17:50:26 -0500 Executive Performance and Compensation IRS rule would implement excise tax on certain executive compensation /news/headline/2020-06-08-irs-rule-would-implement-excise-tax-certain-executive-compensation The Internal Revenue Service Friday issued a <a href="https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-11859.pdf">proposed rule</a> implementing a provision of the Tax Cuts and Jobs Act of 2017 that imposed a 21% excise tax on certain executive compensation paid by tax-exempt organizations. Under the proposed rule, any deferred compensation arrangement or retention or retirement bonus not vested prior to the first taxable year beginning after Dec. 31, 2017 is subject to the tax. The agency will accept comments on the proposed rule for 60 days after its publication in the June 11 Federal Register. AHA has <a href="/system/files/advocacy-issues/letter/2017/171208-letter-taxbill-conferees.pdf">urged</a> Congress to provide an exception for existing contracts or nonqualified deferred compensation plans for applicable tax-exempt organizations. Mon, 08 Jun 2020 15:21:44 -0500 Executive Performance and Compensation Statement on Tax Proposal /press-releases/2017-11-02-statement-tax-proposal <div class="outlineContent clearfix">Contact: Marie Johnson, 202-626-2351, <a href="mailto:mwatteau@aha.org">mjohnson@aha.org</a>Colin Milligan, 202-638-5491, <a href="mailto:cmilligan@aha.org">cmilligan@aha.org</a># # #Tom Nickels Executive Vice President �� AssociationNovember 2, 2017# # #Today’s tax proposal contains several provisions that have consequences to hospitals, health systems and the patients they serve. For many communities, tax-exempt financing, such as private activity bonds, has been a key to maintaining vital hospital services. If hospital access to tax-exempt financing is limited or eliminated, hospitals’ ability to make investments in new technologies and renovations in the future will be challenged. At the same time, we are pleased the proposal maintains current policy on charitable contributions that are critical to funding the services that patients need.In addition, we are concerned about the proposed 20% excise tax for certain hospital employee compensation. There is already a rigorous process prescribed by the Internal Revenue Service for setting up executive compensation. The process requires an impartial panel drawn primarily from the board of trustees, which is charged with setting CEO compensation based on the marketplace and documenting deliberations to attract the best talent. Finally, we are troubled that the proposal would eliminate an important deduction for people with high medical costs.America’s hospitals and health systems are always open, serving their communities 24 hours a day, seven days a week, 365 days a year. As Congress engages in the important work of reforming the nation’s tax code, we urge them to retain tax code incentives and fair treatment for hospitals that continue to work to provide access to health care in communities all across the country.<h2>About the AHA</h2>The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at <a href="/">www.aha.org</a>.</div> Thu, 02 Nov 2017 00:00:00 -0500 Executive Performance and Compensation