Where do not-for-profit health systems stand on board compensation?
Prevalence remains low, but interest is growing…
Health care governance is increasingly complex as organizations continue to grow in size and scope. This is leading to intense competition for skilled board members.
While board pay is still a minority practice among not-for-profit systems, some are considering compensation in an effort to:
- Attract and retain the most qualified candidates – particularly those with experience in digital transformation, consumerism, financial risk, strategy, commercialization, transformation, and other related fields.
- Signal the importance of the board’s role amidst growing operational complexity.
- Recognize the significant time commitment and expertise that modern board roles demand.
- Mitigate competition from for-profit boards and other major not-for-profits that often offer board compensation.
Is it the right fit for your organization?
In this article from the The Governance Institute, SullivanCotter experts Renee Stolis and James Ferguson offer a data-driven perspective on what pathways nonprofits can follow and provide six helpful considerations for organizations as they think through their approach.
Want a snapshot of the data?
Prevalence of Board Compensation Programs
- ~15% of organizations with more than $1 billion in revenue
- ~30% of organizations with more than $5 billion in revenue
- ~40% of organizations with more than $10 billion in revenue
