Top Executive Pay Matches or Exceeds Revenue Growth
Boards and management teams hold the important responsibility of making well-informed executive compensation decisions. To effectively make those determinations, decision-makers must carefully consider high-quality, effective data to choose what’s right for their organizations. The findings from the recently published 2023 BDO Health Insurance Industry Executive & Management Total Potential Remuneration (TPR) Survey explore the most recent changes to executive pay packages for health insurers and offer a valuable tool in that determination process.
This summary is the first installment of a two-part series focusing on select high-level insights from the full report. Read the next installment: Using Incentive Compensation to Drive Corporate Results.
BDO’s TPR Survey includes hard data, analysis, and insights related to compensation strategies and performance measures that are intended to drive desired business outcomes. The extensive survey results report contains in-depth data and analysis that can help health insurance companies to address critical issues, including:
- Designing pay programs and delivery mechanisms to attract and retain an executive leadership team that will drive the business strategy.
- Ensuring performance metrics support the behaviors that will achieve the goals of the business.
- Determining how much of an executive’s pay should be at risk (e.g., variable pay that is only earned if specific performance metrics are achieved).
- Effectively designing supplemental executive retirement plans and change of control agreements.