This special series of the Governing Health podcast, presented in collaboration with SullivanCotter, explores key developments and provides guidance for boards’ executive compensation committees as they navigate complex operational, technical, and strategic challenges. In this episode, Michael Peregrine, Kerrin Slattery, and Jeff Holdvogt examine why innovative compensation incentives have become a pressing topic for health systems and their compensation committees.
The healthcare landscape is evolving – and so must executive compensation strategies. As health systems pursue innovation to drive growth and financial stability, traditional pay models are no longer enough. Organizations are creating centralized innovation centers and launching subsidiary ventures to diversify revenue streams, and these forward-looking structures demand a fresh approach to rewarding leadership.
The US Securities and Exchange Commission recently hosted a roundtable to discuss potential updates to executive compensation disclosure requirements. The roundtable highlighted the need to reevaluate the current executive compensation disclosure framework due to complexity, costs, and potential distortion of corporate behavior. Participants debated the effectiveness of current disclosures, such as pay versus performance and CEO pay ratio, and the classification of personal executive security expenses as perquisites.
The US House of Representatives passed its One Big Beautiful Bill Act on May 22, 2025 (the Act), but nonprofit health systems may not find much about the Act that’s attractive. If passed by the US Senate and signed into law, the Act would threaten already thin operating margins at nonprofit hospitals and health systems by expanding the executive compensation excise tax, taxing parking, and similar employee benefits.
This special quarterly series of the Governing Health podcast with SullivanCotter highlights developments in and offers support to the board’s executive compensation committee as it navigates a range of complex operational, technical, and strategic challenges.
In this episode, Michael Peregrine, Tim Cotter, Bruce Greenblatt, Kathy Hastings, and Jeff Holdvogt offer recommendations for the committee to focus on in 2025, including:
Many countries finalized new regulations and released new guidance in 2024 that will impact global equity plans. This client alert highlights key updates from Canada, the European Union, the United Kingdom, Brazil, and other jurisdictions, and recommends steps companies should take to address them.
A legislative fix to surprise medical billing is not working the way lawmakers imagined it would work. According to this Politico Pro article, private equity groups are disproportionately benefiting from the No Surprises Act, and the law may inadvertently lead to higher health insurance premiums.
On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule, slated for publication in the Federal Register, provides that employers’ use of noncompete agreements amounts to an “unfair method of competition” that runs afoul of Section 5 of the FTC Act.
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For a deeper dive, join our multidisciplinary team of employment and antitrust lawyers for a webinar covering what employers need to know about the Final Rule and what to do next.
FTC’s Final Noncompete Rule: What It Means and Next Steps for Employers
Wednesday, May 8, 2024
Webinar | 2:00 – 3:00 pm (EDT)
Taxes can have a significant impact on family offices, influencing decisions around structure, investing and overall planning strategies. McDermott’s Family Office Tax webinar series explores the latest trends and guidance on tax planning for family offices and identifies opportunities to optimize tax efficiency.
Our first webinar covered the legal, tax and administrative considerations a family office faces when creating incentive and deferred compensation plans for employees. Discussion topics included:
The Internal Revenue Service (IRS) has announced plans to initiate dozens of new audits this spring in an attempt to ground high-flying taxpayers and their personal usage of corporate aircrafts. These audits will focus primarily on “highest risk” corporations and large partnerships, IRS Commissioner Danny Werfel stated. Werfel added that audits of high-income earners will likely follow to “ensure that high-income groups are not flying under the radar.”
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