Our Clients & Case Studies

CASE STUDY #3

HCSC Overhauls Executive and
Non-Executive Compensation

Challenge
Healthcare Service Corporation (HCSC) needed to provide its Compensation Committee with annual compensation reviews of its CEO and other elected officers. It also needed to develop non-executive compensation pay rates and practices.

Solution
Due to mergers and business expansion, HCSC had expanded its geographic range significantly. Because of this, ORF tapped into multiple sources of market data that HCSC could use for comparison purposes. First, it compiled an industry peer group to track both CEO compensation and company performance. It also used published national and local salary survey data to develop salary, annual incentive and total annual compensation data, and benchmark officer and non-officer pay. Finally, ORF used nationally published geographic data to determine non-officer pay rates in a number of local markets.

Results
HCSC provided the Compensation Committee with a thorough, solid compensation analysis. This analysis, combined with peer group information, provided a comprehensive picture. Based on the overall findings, the organization established competitive pay rates, annual incentives, and total annual compensation for both officers and non-officers. It also reduced the number of non-management, geographically based pay plans to a more manageable number.

©2007 Organizational Research Forum Inc.