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Problem Statement
Lower Valley Hospital is a general hospital in Bakersfield, California. The hospital's total revenues run about $1.5 billion a year. Recently, the hospital lost its Executive Director (a position comparable to CEO). The board has decided to promote the second-in-command at the hospital to the post. To proceed with an offer for this person, the board needs to determine the compensation for the job. They feel their compensation strategy may be lagging the market as their former Executive Director left because he was offered more compensation at a competing hospital.
The board asks Jim Murphy, the hospital's Human Resources Director, to provide them with some preliminary figures. He turns to ERI's Nonprofit Comparables Assessor to research executive compensation levels at comparable tax-exempt organizations. To follow along with his research, please click on the Load Step-by-Step button below.
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