Executive Compensation Statement
All not-for-profit organizations are required to complete the IRS Form 990, “Return of Organization Exempt From Income Tax,” each year. It provides detailed information on the organization’s operations, such as its revenue, contributions received, community benefit inventory, and the compensation provided to top executives.
All not-for-profits are required to make the Form 990 available for public inspection in their offices. Form 990s are available by contacting the chief compliance officer.
In regard to our executive compensation program:
- Our executives are accountable for ensuring that UPMC Hamot’s mission is carried out at the highest levels of safety and quality, service, and stewardship within the communities that we serve.
- Our Board of Directors determines executive compensation under its Executive Compensation Committee. The committee is composed of Board members who are independent of UPMC Hamot management, have no personal interest in the compensation arrangements, are not related to nor under the control of any individual whose compensation arrangement is being reviewed, have no material business relationship with UPMC Hamot, and are not paid for their services as Board members.
- The committee retains an independent consultant to conduct an annual compensation analysis to help ensure that UPMC Hamot compensation practices and compensation levels are reasonable. This consultant provides only advisory services related to compensation to UPMC Hamot.
- To attract and retain the highest caliber of health care professionals needed to sustain the quality of the health care this institution provides to the communities that we serve, compensation must be competitive with that provided by the organizations we compete with in the job market. When senior management positions are filled, UPMC Hamot typically conducts national and regional searches.
- We benchmark ourselves against organizations of comparable size and mission across the region and the nation. Market data are assembled for all elements of executive compensation (i.e., cash compensation, benefits, and perquisites).
- Compensation levels reflect the scope of each executive’s responsibilities, educational background, experience, and industry standing, as well as individual and organization performance.
- It is the obligation of the committee to assess the performance of UPMC Hamot’s CEO, determine his/her compensation, and report its finding in this regard to the Board. The committee is also responsible for reviewing and approving the performance assessments and compensation recommendations for the executive management staff.
All compensation decisions are made in a manner that is consistent with UPMC Hamot’s Board-approved compensation philosophy.
