The GAO has released its survey report on the executive compensation practices at 65 not-for-profit hospital systems, which was requested by William Thomas, chairman of the House Ways and Means Committee. The survey was intended to report on hospital compensation policies, not to draw conclusions about their adequacy or adherence to laws and regulations, said the GAO.
The GAO survey found that most of the 65 not-for-profits had executive compensation committees, had conflict-of-interest policies governing the compensation committees and consultants, hired outside compensation consultants, and relied on market data in determining compensation for executives. Much more varied, however, were practices concerning executive benefits and perquisites. Although 50 hospitals provided supplemental executive retirement plans, 34 hospitals provided 457(f) plans and 46 offered 403(b) plans to top executives. Paying for car expenses and memberships for social and recreational clubs was common, but only 25 reported paying for financial or tax planning for CEOs, seven provided attorney fees, and 13 paid for personal travel expenses for the spouse of the CEO. Less than half (28) paid for their CEOs to attend sporting events, and 17 paid for CEOs’ attendance at theater performances. Thirty-nine hospitals said they require an internal audit of CEO entertainment expenses, but only nine use an external audit.
