1. If a CEO of a not-for-profit hospital is doing an excellent job, should she be rewarded by the governing board with a substantial pay increase? If she is, what are some of the potential legal ramifications? What if the CEO's pay has traditionally been very low, and this increase now puts her compensation in line with other similar not-for-profit hospitals?
2. A new hospital is in the process of developing bylaws. Included in the document will be a description of the composition of its governing board. Who should be on the governing board? What types of factors should be considered?
3. Apex Hospital is in need of major renovation of its electrical system. One of the Apex's governing board members, Willy Watt, is an electrical contractor who is a partial owner of an electrical restoration company. He would like to bid on the project. May he? If he does, what must he do? What must the governing board do? Is there a problem with Mr. Watt's fiduciary duty? Is there a problem with the governing board's fiduciary duty? What would you recommend?
4. Dr. Walters agreed to have his office painted by a local painter. They did not sign a formal contract; instead, they formalized the project with a handshake. Is this a contract? What type of contract is this? Was it a good idea to formalize it this way? Why or why not? What problems might arise?

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1 Rewarding the CEO with a substantial pay increase Whether the CEO of a notforprofit hospital should be rewarded with a substantial pay increase is a decision that should be made by the governing boa... View the full answer