Board Oversight of Executive and Physician Compensation

Medical professionals in a meeting

An Update on Key Practices and Protocols

Leverage this comprehensive Strategy Toolkit!

Reprinted with permission from The Governance Institute, Lincoln, NE (2026)

Not-for-profit hospitals and health systems are being asked to oversee executive and physician compensation in an environment that looks very different than it did just a few years ago. Regulatory expectations continue to evolve while workforce pressures and public scrutiny have elevated compensation from an administrative responsibility to a strategic governance issue.

As a result, the level of engagement expected from boards in the compensation decision-making process has substantially increased – creating the need for governance processes that are more transparent and capable of supporting programs that stand up to both market realities and regulatory review.

Developed with The Governance Institute, this strategy toolbook examines how leading organizations are strengthening board oversight while adapting to today’s health care environment. It provides a practical governance framework that helps boards establish clear decision-making processes, improve oversight of executive and physician compensation, and better align compensation with organizational strategy.

This guide also contains sample documents and governance resources throughout that organizations can adapt to fit their own needs.

Download the full strategy toolbook to learn how health care organizations are modernizing compensation governance to reduce risk, support leadership, and strengthen long-term organizational performance.

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