executive compensation committee Archives

Addressing DOJ’s New Compliance Focus on Executive Compensation

by Ralph E. DeJong, Michael W. Peregrine, Sarah Walters and Eugene I. Goldman | May 19, 2023 | Executive Compensation

The new compliance focus on executive compensation, as announced by the US Department of Justice (DOJ) on March 3, 2023, has significant implications for how healthcare organizations address both corporate compliance and compensation programs for their executives. It also raises new issues for the board of directors’ oversight of compliance and compensation functions.

In a recent webinar, McDermott’s Ralph E. DeJong, Michael W. Peregrine, Sarah E. Walters and Eugene I. Goldman discussed the new policies, possible responses by management and boards, and potential strategies for responding to the policy goals of the DOJ and the Delaware Chancery Court.

Access the webinar and top takeaways here.

Insights and Challenges for the Executive Compensation Committee

by Michael W. Peregrine and Ralph E. DeJong | Nov 30, 2022 | Executive Compensation, Labor

The board’s executive compensation committee is the focus point for many of the extraordinary financial, economic and operating challenges currently facing healthcare organizations. Executive compensation increases are impacted by both an inflationary economy and significant revenue downturn. In addition, the US Department of Justice has identified executive compensation as an important conduit through by which corporate compliance incentives and deterrence can be implemented. Furthermore, executive recruitment and retention amidst the “Great Resignation” remains a key compensation concern.

These and similar issues have become important agenda items for the board’s executive compensation Committee. Michael Peregrine is joined by industry experts Tim Cotter and Ralph DeJong for the first in a two-part conversation about the impact of the developments on the compensation committee, including:

Key topics for briefing the board’s compensation committee.
Increasing communication between the compensation committee and the C-Suite.
Addressing pressures felt by executive committee members.
Insights from the Sullivan Cotter compensation data survey.
Projections for the impact of inflation on next year’s salary increases.
Expectations for future CEO salary increases and organization departures.
The segmenting approach to leadership plans.
Coordination with the Audit & Compliance Committee on compensation incentives

Access the podcast.

How the Tax Act Upsets the Board/Executive Compensation Committee Dynamic

by Michael W. Peregrine and Ralph E. DeJong | Jan 23, 2018 | Executive Compensation

Michael Peregrine and Ralph DeJong wrote this bylined article about what they called the “enormous consequences” for tax-exempt hospital senior executive compensation due to the new Tax Cuts and Jobs Act provisions that place an excise tax on executive compensation and benefits. “From a corporate governance perspective, the significance of these new provisions carries the potential for recalibrating the relationship between the board and its executive compensation committee,” the authors wrote.

Originally published in Bloomberg BNA’s Health Law Reporter, January 2018.