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Garden view Long-Term Care is a private, not-for-profit, retirement community located in a medium-sized market. It is a 50-year-old facility offering three levels of care for its elderly residents: independent living, assisted living, and skilled/full nursing care. Garden view’s administration has recently identified a strategic initiative to aggressively pursue the area of dementia/ Alzheimer’s care. In order to pursue this new strategic initiative, Garden view is at- tempting 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 deter- mined 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
1. Is the package that is recommended by executive search committee typical for positions of this nature?
2. How could the board of directors be confident that the compensation package recommended by the executive search committee is market competitive?
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