Wesleylife

“The executive committee is comprised of the chair of the board, the vice chair, the past chair, the chair of the planning committee, the chair of the finance committee, and the president/ceo. Except for the president/ceo, all members of the executive committee must be members of the board of directors. The executive committee has all the authority of the board (except as noted below) but limits itself to matters that require immediate action and cannot wait until the next scheduled board meeting. The executive committee shall have no authority to amend the articles of incorporation, the bylaws, or adopt a plan of merger of consolidation. The executive committee shall report on its actions at the next meeting of the board of directions and such actions shall be subject to revision and alteration of the board.”

“The form 990 was prepared by an independent accounting firm. The ceo, cfo and the director of finance reviewed the document internally. The form 990 was then reviewed by the board's finance committee, approved and made available to all voting board members prior to filing.”

“The corporation communicates the conflict of interest policy annually to board members and requires board members to complete an annual statement describing actual or perceived conflicts of interest. If any conflicts arise the board must follow the procedures specified in the policy to resolve the matter. With respect to the board members, a person who has a conflict of interest is deemed an interested director. The interested director shall not participate in the vote regarding his/her potential conflict and, depending upon the circumstances, may not be permitted to participate in the discussion regarding the issue. No interested director shall be permitted to vote in matters in which he/she has a conflict of interest. With respect to employees, the president, in consultation with other unbiased managers, shall determine whether a conflict of interest exists. After exercising due diligence, including investigating alternatives to a transaction or arrangement that gives rise to a conflict of interest, the president shall determine whether the corporation is able to obtain with reasonable efforts, a more advantageous transaction or arrangement from another individual or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not available, the arrangement or transaction may go forward if the president determines that the transaction is fair and in the best interest of the corporation.”

“The executive committee of the board of directors is empowered by the board of directors, according to article vii of the organization's by-laws, to determine performance goals and monitor and evaluate performance of the chief executive officer. The executive committee includes in its evaluation, feedback from other board members and others not associated with the committee or the board. The committee monitors performance of the organization and ceo throughout the year and provides ongoing assessments to the ceo using an evaluation and rating tool. The committee utilizes an annual independent compensation survey to assist in determining compensation. The organizations of chief executive officers of multi-site organizations and leading age, formerly known as the american association of homes and services for the aging provide an annual survey of compensation for ceos and other officers. (wesleylife has searched for other surveys to supplement this one but no other survey provides the same degree of comparability.) the survey includes only senior living organizations and is sorted by geographic regions, revenue volume, full-time equivalent employees, and asset size. In 2015, the executive committee of the board engaged an independent, third party to take a deeper analysis into the compensation design as compared to similar organizations. The intent was to go beyond the industry benchmarked study and drill into appropriateness, competitiveness, and overall design. It was determined, through this second opinion, that compensation was appropriate for the size and complexity of the organization. The executive committee discloses to the full board of directors, in closed session, the results of the performance evaluation and compensation decisions. Minutes of meetings are maintained and the board chairman provides written notification to both the ceo and the corporate finance department regarding compensation decisions. The evaluation and compensation setting process is much the same for the other officers as for the ceo with some exceptions. The ceo determines the performance goals and monitors results. The same survey as described above is used to assist in determining compensation. The ceo discloses annually to the executive committee the compensation decisions and reasons for those decisions in regards to other officers. The last review process was conducted in 2015 and is done annually.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”