It seems there are two choices with regards to executive compensation.
The first is to simply place executives on salary and expect them to do the job they get paid for. That’s how rank and file employees get paid.
The second is to divide compensation, setting out a certain amount as “base” salary, the rest as bonus based on established performance benchmarks.
The Local Health Integration Networks can also claw back a percentage of a hospital CEOs salary if the hospital fails to live up to the terms of its accountability agreement with the LHIN – not that we are aware of this ever taking place.
The LHINs themselves may be a bit gun-shy about using these powers given they themselves are struggling to meet their own performance targets. The Erie-St. Clair LHIN, for example, missed 11 of 14 performance targets for 2010-11.