Internal and external forces affecting management compensation.

Abstract

Increasing media scrutiny, eventual implementation of health care reform, and proliferation of TQM/CQI programs are significantly affecting health care management compensation programs. Trustees are insisting that management pay be based on definitive performance standards and are becoming increasingly resistant to the annual increase that is no longer sacrosanct. Philosophical conflicts regarding compensation are developing between CEOs and boards. These external and internal factors will require managers to reassess their attitudes toward their own and subordinate's compensation. Managers, at all levels, will have to adjust to pay determination factors and practices that differ from those to which they have been accustomed.