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Issues with Executive compensation and benefits - Research Paper Example

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Issues with Executive Compensation and Benefits Introduction Executive compensations and benefits are often considered to be one of the most debated topics relating to the field of Human Resource Management (HRM). It basically deals with the issue relating to the remuneration offered to the top-level management personnel in an organization…
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Download file to see previous pages Moreover, assessing the strategies adopted by those organizations to mitigate such challenges, recommendations for the management of EL Camino Hospital will be drawn on how to resolve the situation. Historical View of El Camino Hospital El Camino Hospital is regarded as one of the oldest non-profit healthcare organizations operating in the state of California, the United States. The construction of the hospital building started in the year 1958 with a total investment of around US$ 7.3 million. It is worth mentioning that the funds invested were generated though issuance of funds to the general public. The hospital started operating in the year 1961 with a total of 300 beds, which gradually increased over the years. The hospital often been regarded to be the first to implement computerized medicinal information system. This particular development attracted a larger volume of people to avail the services offered by the hospital. Since its establishment, the hospital has also acquired a substantial number of well-known medical institutions under its name, making it one of the biggest as well as oldest non-profit healthcare organizations in the state of California (El Camino Hospital, 2013). Assessment of Current Challenges As revealed in the article, i.e. ‘El Camino Hospital Officially Files Lawsuit over Executive Pay Cap’, the hospital has filed a lawsuit against Service Employees International Union (SEIU). SEIU is a form of international labor union, which aims to protect employee welfare and to mitigate the problems faced by the labors while conducting various sorts of operational functions (SEIU, n.d.). The prime intention of the lawsuit can be interpreted as to negate a voter-backed initiative that would limit the compensation of the executives of the hospital. Thus, from this particular notion, it can be affirmed that the current challenge faced by El Camino Hospital is linked with executive compensation. Relating to the article, it can further be observed that the people or the individuals within the hospital county voted to support the clause measure M taken to restrict the compensation obtained by the top-level management of the hospital, which was then accounted to be less than twice the salary of California’s governor. The lawsuit of the hospital identified two officials named Kary Lynch and Laura Huston as defendants, stating that they were found to be the main individuals who supported the clause (measure M). It is worth mentioning that the hospital also filed a suit against the chief Human Resource Manager of the hospital for being equally liable in motivating the employees to support the clause under the guidance of SEIU. Lawyers were also appointed by the non-profit healthcare organization to restrict the measures into healthcare districts, which were being supported by the SEIU. It is worth mentioning that although the hospital did not mention the name of SEIU, Mr. Lynch and Ms. Huston were directly addressed in the lawsuit (Herman, 2013; Modern Healthcare, 2013; Embarcadero Media, 2013). Review of Other Organizations That Had Similar Situation and the Strategy They Used To Address the Issue In the current phenomenon, there are certain organizations, which have to face similar issues concerning the arrangements of executive compens ...Download file to see next pagesRead More
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