Over the next few months, the Ontario Hospital Association (OHA) will be using this space to discuss various aspects of hospitals operations, including:
- What they are
- What they cost
- How they compare to hospital operations in other provinces
Executive Compensation in Ontario Hospitals
Executive compensation in Ontario's 151 hospital corporations has come under understandable scrutiny in recent years. Media representatives, members of the public and elected officials have raised questions about pay levels, the various components of executive compensation, performance expectations, and accountabilities for the use of public funds.
In the summer of 2011, the Board of Directors of the OHA agreed on the need for a thorough and thoughtful review of hospital executive compensation. To ensure the review was comprehensive, well-informed, arm's length and objective, the OHA Board created an Independent Expert Panel on Executive Compensation in the Hospital Sector.
Three prominent and respected individuals agreed to serve on the Independent Expert Panel:
- The Panel Chair, the Honourable John Manley, P.C.,O.C., is the President and Chief Executive Officer of the Canadian Council of Chief Executives. In addition to his private sector experience, he has served as Deputy Prime Minister of Canada and federal Minister in the portfolios of Industry, Foreign Affairs and Finance.
- William Anderson, FCA, is currently Chair of Nordion Inc., and a Director of TransAlta Corporation, Gildan Activewear Inc. and Sunlife Financial Inc. Mr. Anderson is a former Chief Financial Officer of BCE/Bell Canada. He is a Fellow of the Institute of Corporate Directors.
- Peter Barnes served the Ontario Government as Secretary of Cabinet, Clerk of the Executive Council, Deputy Minister of Economic Development and Trade, and Deputy Minister of Community and Social Services.
The Panel's mandate was to provide recommendations to the OHA Board about appropriate, sustainable executive compensation policy and practice guidelines for the range of hospitals in Ontario. The Panel was also asked to assess the potential impact the recent government initiatives could have on the recruitment and retention of Ontario hospital executives.
The report was made public on December 9, 2011. Click here to access it.
The OHA Board unanimously accepted the Panel's recommendations, and will communicate and work closely with the Government of Ontario to implement them in the time ahead.
To access the Independent Panel on Executive Compensation in the Hospital Sector's Media Release - Independent Panel Recommends New Guidelines for Determining CEO Compensation in Ontario Hospitals - click here.
To access the OHA's Media Release - Ontario's Hospitals Welcome Report of Independent Panel on Executive Compensation, Commit to Implement Recommendations Immediately - click here.
Click here to access Tom Closson's CBC radio interview where he discusses the OHA's plans to take a closer look at hospital compensation.
UPDATE: On March 23, 2012, the OHA proposed a Hospital Executive Compensation Framework and associated recommendations. The Framework and recommendations are outlined here.
A media release and backgrounder with more information about the proposed Hospital Executive Compensation Framework are also available in the News section of www.oha.com.