Compensation, Performance, Compliance, and Ethics

Health Care Compliance Association and the Society of Corporate Compliance and Ethics
May 2009

OBJECTIVE:
Research revealed that when it comes to compliance and ethics metrics, little has been done to
incentivize ethical behavior. This survey was conducted in order to investigate the correlation
between ethics and compensation, incentive, and performance evaluation programs.

METHODS USED:
A total of 358 responses were received from compliance and ethics professionals in the database
of the Health Care Compliance Association and Society of Corporate Compliance and Ethics.
Responses were collected and analyzed using Zoomerang, a web-based third party solution.

KEY FINDINGS:

 34% of respondents stated ethics and compliance had some or a great deal of impact on the
compensation process for executives, 29% stated ethics played no role, and 27% stated very
little role.
 When asked if their organization included compliance and/or ethics metrics as a part of its
executive performance evaluation program, 46% stated yes, 36% stated no, and 18% did not
know.
 When asked if their organization included compliance and/or ethics metrics as a part of its
non-executive employee performance evaluation program, 48% stated no, 46% stated yes, and
6% did not know.
 76% did not think compliance and/or ethics metrics have a significant impact on bonuses or
incentive compensation awards.
 Only 1 in 6 companies have tied employee bonuses and incentives to ethical performance.

CONCLUSION:
 Only a small percentage of companies have made ethics and compliance a process for determining how
employees are compensated.
 Even with training efforts made in the area of compliance, employees may still be getting the message
that short-term sale and revenue goals are more important to their company than ethical behavior.
 There is big room for improvement for aligning business practices and ethical behavior.

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