LINCOLNSHIRE, Ill., July 9, 2013 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), today announced the launch of the industry’s first modeling tool that provides not-for-profit health care organizations with the ability to compare and analyze executive compensation information against organization performance.

Aon Hewitt’s Pay and Performance—Health Care solution ties together compensation data from publicly available IRS Form 990 tax filings with relevant financial and operational measures specifically designed for the not-for-profit health care industry. Through a user-friendly interface, organizations can easily benchmark their executive compensation information against more than 200 financial and operational measures, including three-year compound annual growth rates and three-year averages.

“Not-for-profit health care organizations have historically compiled executive compensation peer group data manually from 990 tax filings or special survey studies, which is complex, time consuming and often incomplete. In addition, most available financial data in the not-for-profit health care sector is extremely hard to gather, analyze and interpret, which often limits a meaningful analysis of readily available data,” said Bill Dixon, executive compensation leader for health care at Aon Hewitt. “Aon Hewitt’s solution combines compensation, financial and operational information together to provide health care organizations with a simple and accurate picture of compensation information so they can make better decisions and assess the effectiveness of their total compensation programs.”

Specifically, Aon Hewitt’s Pay and Performance—Health Care solution enables organizations to:

■  Create Peer Groups that accurately represent their competition. According to Aon Hewitt, measuring performance relative to a peer group remains a key benchmarking tool to answer pressing “pay-for-performance” compensation questions in the health care industry. Aon Hewitt’s solution provides data that is job-matched to a specific role so executive compensation information can be easily compared across organizations and job levels.

■  Analyze Pay and Performance to help them validate the compensation delivered to an executive aligns with how well the company has performed. “As the scrutiny of executive compensation provided by not-for-profit organizations increases, compensation committees are increasingly feeling the depth of accountability and risk for their decisions,” said Dixon. “Aon Hewitt’s tool provides organizations with the accurate information they need to make thorough and well-justified decisions by demonstrating the link between pay and performance. We think that this dramatically enhances governance and risk mitigation.”

■  Evaluate Incentive Plan Design and show how an organization has performed versus a group of companies so they can identify and test measures and targets to set for their incentive plan. According to Aon Hewitt data, incentive compensation (both short- and long-term) is becoming a larger part of the compensation package delivered to executives, as it pays a variable amount in response to certain levels of financial and operational performance. Aon Hewitt’s data shows that approximately 80 percent of not-for-profit health care organizations currently offer incentive compensation to their executives.

“In today’s heath care environment, executives must produce more value with less cost, while increasing the quality of patient care to sustain the financial viability of the organization. Within this demanding environment, executive compensation levels are routinely linked with an individual’s successes and/or failures and their impact on the organization,” said Dixon. “Our Pay and Performance—Health Care solution is unique in that it provides insight into the amount of incentive compensation paid to executives for the most recently disclosed year, aside from just base salary.”

■  Strengthen Recruitment and General Benchmarking Capabilities to enable organizations to better assess the competitiveness of a compensation package for existing incumbents or new hires. It also can help organizations convey their performance success to new candidates.  

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About Aon Hewitt

Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.

Media Contacts:
Maurissa Kanter, 847-442-0952, maurissa.kanter@aonhewitt.com
Amy Ochalski, 847-771-4225, amy.ochalski@aonhewitt.com