Factors determining compensation at work

compensation level of the CEO.

In every healthcare organization, people have different ranks and roles as well. The increasing number of people or populations in the world also translates to many people getting sick that need treatment. Therefore, the healthcare sector is a crucial part of the economy. Healthcare operations must be transparent in their information, including compensation. The healthcare industry has people that bring unique skills with various roles in every organization. The chief executive officer (CEO) has several responsibilities in ensuring that the hospital organization runs smoothly with transparent operations. Research from journal articles shows that the CEO hove to lead as an example in the organization by preparing meetings that can help address the challenges that members are facing(Walston, Chou, & Khaliq, 2010, p. 414). Therefore, the following determinants are key in gaining insights into the salaries of the chief executive officer. The main determinants that can be used by a board member when considering additional salary for a chief executive include the level of education and experience that the CEO has as well as the past experiences.

It is important to look at different responsibilities while creating the compensation level of the CEO. The duties that are performed by the CEO have to be used in determining the compensation package.The other factor to consider is the experience that the CEO has from previous positions. All the responsibilities that they had from the previous jobs id used to give their salaries and bonuses. There are times that risk that someone faces can be used as a determinant to the amount of compensation that they get (Pynes & Lombardi, 2011). Such factors are crucial because they show the ability of the CEO or someone at the level of compensation.

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Education as a factor

Education has been used for a long time as a primary factor in determining the salary that someone gets. Studies done on various CEO show that the level of education is a key factor in determining the salaries that they have (Walston et al., 2010). In this sample study, research has shown that 20% of people who are in the Healthcare department hold bachelor’s degrees. However, and have a master’s degree, while 2% have a doctorate degree  (Walston et al., 2010). Every CEO has a level of education that also relate to their knowledge and what they represent within an organization. A CEO that has a doctorate degree has to provide proof of the number of years that they have spent in their education as well as the type of experience that they have.  They will have better salaries than people with basic degrees.

The other factor that is crucial in determining the compensation is the experience that an individual has in the job. The job experience for the CEO that comes from the previous positions that they held and where they were holding different responsibilities as well as the amount of time they used in performing such responsibilities determine if they get god salaries or not. An individual that has duties with more experience should have more benefits because they are well aware of the current situation, and they can use their experience to devise the best approach in solving the problem within the institution. The last factor that has to be taken into consideration is past performance within the organization. Performance can also be key to determining the amount of compensation that an individual gets(Reiter, Sandoval, Brown, & Pink, 2009). Those that have a better record should get better salaries.

Financial performance by the Executives should be accessible to determine whether the organization is making a profit or not. This also gives them the ability to determine if they are giving compensations that are comparable to hear the Executives (Reiter, Sandoval, Brown, & Pink, 2009).


The Bible also narrates the Importance of being a responsible member of the organization. The book of Philippians tells people to do everything without necessarily arguing or complaining so thatChristians can remain pure in the heart instead of becoming a crooked generation. If this aim is achieved, Christians will shine like stars in the sky and will also be in a position to give life to the world and to boast of Christ without necessarily running in vain ((Philippians 2:14-16, NIV). It is important to be responsible for an individual is a doctor, a manual laborer, or a CEO within the hospital and to work in a way that is acceptable before god.


Pynes, J. E., & Lombardi, D. N. (2011). Human resources management for health care organizations: A strategic approach. San Francisco, CA: Jossey-Bass.

Reiter, K. L., Sandoval, G. A., Brown, A. D., & Pink, G. H. (2009). CEO Compensation and hospital financial performance. Medical Care Research and Review, 66(6), 725-738. doi:10.1177/1077558709338479

Walston, S. L., Chou, A. F., & Khaliq, A. A. (2010). Factors affecting the continuing education of hospital CEOs and their senior managers. Journal of Healthcare Management / American College of Healthcare Executives, 55(6), 413-428. doi:10.1097/00115514-201011000-00008


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