Executive Compensation Guidelines

Executive Compensation Guidelines

John Muir Health is committed to compensation principles and policies that are fair, reasonable, competitive, and in keeping with government regulations and sound corporate governance practices, including:

Strong, Independent Governance

  • Reviewed and approved annually by an independent compensation committee of its Board of Directors
  • Informed by comparability data and the analysis of an independent third-party pay expert who reviews "best practices" and market data against a well-defined peer group to set fair and equitable performance-based compensation parameters

Performance- and Results-Based

  • Well-defined performance metrics place between 30-40 percent of executives' pay "at-risk," or contingent upon meeting well-defined performance metrics
  • Incentive payments are aligned with the organization's performance on quality and service, financial, and growth metrics
  • Not only are our executives compensated for delivering results, John Muir Health has a long-standing policy of rewarding all of its employees through Success Sharing, believing that everyone who contributes to the success of the organization deserves to benefit from what their hard work makes possible

Reasonable and Competitive

  • Compensation levels for executives are benchmarked at 50th percentile of their defined peer group, resulting in base compensation that is market-competitive. Only if executives meet aggressive pre-determined stretch goals are they able to achieve up to the 75th percentile of their competitive market salary. This same market-competitive principle is applied to all John Muir Health staff, with pay levels benchmarked at the 50th percentile of their specific competitive market
  • Merit increases are given based on each executive's performance
  • Top executives' incentive pay is capped in order to minimize risk to the organization
  • The supplemental retirement benefit is at-risk until an executive reaches age 65, at which time the benefit, based on a years of service and income replacement formula, is fully paid out

Transparency and Accountability

  • Compensation policy is fully and clearly documented, and meets all reporting requirements for annual disclosure to the IRS and other stakeholders
  • Complies with all state and federal regulations

For More Information

For each tax year, John Muir Health and its subsidiaries file publicly available information with the Internal Revenue Service (IRS) in a document called a "Form 990." The Form 990 is an annual reporting return that certain federally tax-exempt organizations, such as John Muir Health, are required to file. The reports provide information on each organization's mission, programs (such as our community benefit and charity care initiatives), and finances (including executive compensation). It is the primary tax compliance tool used by the IRS for tax exempt organizations. You can view John Muir Health's Form 990 as well as those for our subsidiaries by logging on to the IRS.gov website.