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Committee typical for positions of nature

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Illcrest Long-Term Care is a private, not-for-profit retirement community located in a medium-sized market. It is a 60-year-old facility offering three levels of care for its elderly residents: independent living, assisted living, and skilled/full nursing care. Hillcrest's administration has recently identified a strategic initiative to aggressively pursue the area of memory care. In order to pursue this new strategic initiative, Hillcrest is attempting to recruit a marketing director for the organization to market the new program.

The board of directors has contracted with an executive recruitment firm to conduct the search for the new marketing director. The first step in the recruitment firm's process was to determine a market-competitive compensation and benefits package for the position. Their market research determined the following:

Starting salary range: $150,000 to $175,000

Incentive bonus potential: 10 percent to 15 percent of base salary

Special perks: travel allowance, conference funds, and expense account

Benefits: fully paid health, dental, life, and disability insurance

Pension: 10 percent contribution to a 403(b) plan

Questions

1. Is the package that is recommended by executive search committee typical for positions of this nature? Explain your position on this package.

2. How could the board of directors be confident that the compensation package recommended by the executive search committee is market competitive?

Reference no: EM133358305

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