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Approach to CEO Compensation

The Chief Executive Officer (CEO) is the only employee of the District who is hired directly by the Washington Township Health Care District Board of Directors. In 2019, the District’s longtime CEO, Nancy Farber, elected to retire. As Ms. Farber’s successor, the Board appointed Kimberly Hartz as the District’s new CEO.

Previously, Ms. Hartz served as the Senior Associate Administrator. Her duties included financial and operational oversight of the following: Strategic Management, Contracting, Community Relations, Governmental Relations, Off-Site Facilities, Women’s Center, Inpatient/Outpatient Ancillary Services, the Washington Township Medical Foundation and the Development Corporation which includes the Washington Outpatient Surgery Center, the Washington Outpatient Rehabilitation Center, Washington Billing, Washington On Wheels, Washington Urgent Care, Washington Sports Medicine Program, and the Ohlone Student Health Center. In her previous role, Ms. Hartz also played a vital role in the establishment and ongoing growth of the District’s affiliation relationship with UCSF.

In setting the CEO’s compensation, the Board considers data provided by an independent health care compensation consultant, Integrated Healthcare Strategies/Arthur J. Gallagher & Company (IHS), and any other factors the Board considers important.

The District has a long-standing philosophy of wage parity for all employees, which includes the CEO. Wage parity means the CEO is not paid at the top of the scale nor compensated towards the bottom. The District’s compensation philosophy of marketplace parity establishes a base salary for the CEO at around the 65th percentile of the CEO’s peer group with a possible “at-risk” award of up to 25% of base salary. Benchmarking executive compensation based on peer group data is standard practice for establishing reasonable compensation for executives working for non-profits.

In the first year of the Chief Executive Officer’s employment, the Board decided that Ms. Hartz’ base salary would be set at 80% of the 65th percentile ($712,000) which the Board believed was appropriate as she gained experience in her new role as CEO.

The CEO’s base salary for subsequent years will be adjusted as she gains experience as CEO of the District. Any adjustment to base salary will also reflect her performance and a review of compensation provided at peer organizations.

With regard to the award of “at-risk” compensation, the District’s compensation philosophy has been to target an “at-risk” award of up to 25% of base salary, which is consistent with the median target opportunity for chief executive officers in the California peer group.

Historically, the Board has considered several factors in determining the amount of the “at-risk” portion of the CEO’s compensation. These factors include consideration of various accomplishments during the past fiscal year.

To review the CEO's contract, click on the link below:

CURRENT CEO CONTRACT