2021/2022 Health Insurance Executive Total Potential Remuneration Insights Report

December 2021

BY

Judy CanavanManaging Director, Global Employer Services

Keolani BradleyManager, Global Employer Services

2021-2022-TPR-Insights_Report_Webheader.jpg
 

Strategically Leveraging Compensation to Drive Business Results

Executive compensation programs should reinforce the strategic goals of the organization and reward executives for their success. Recent economic disruption has required management and boards to increase the frequency and level of communication, which is not only good for the health of the organization but also helps to avoid year-end surprises.

The 2021 BDO Health Insurance Industry Executive & Management Total Potential Remuneration Survey is a valuable source of information about executive compensation relied upon by boards and management to make well-informed executive compensation decisions.

This summary report highlights key findings from the full survey report, which contains extensive data that allows health insurance companies to address critical issues, including:
  • Should companies redesign pay and delivery to attract and retain an executive leadership team that will drive the business strategy?
  • Should current performance metrics be adjusted to support the behaviors that will achieve the goals of the business?
  • How much of an executive’s pay should be at risk (i.e., variable pay that is only earned if specific performance metrics are achieved) and does it effectively align with business objectives?
  • How much pay should be allocated to Supplemental Executive Retirement Plans (SERPs) and Change of Control (COC) agreements?
  • Is there adequate communication between management and the board to ensure awareness and preparedness for the impact of external influences?