CEOs of not-for-profit multi-site senior living organizations are more likely to be members of their organizations’ boards than are CEOs of single-site providers, according to the results of the latest Ziegler CFO Hotline survey.
Fifty-one percent of multi-site CEOs are on their organizations’ boards, according to the survey, whereas 34% of leaders of single-site organizations are on their boards.
The specialty investment bank said it had no prior data on CEOs as formal members of their boards. This was the first time the question was asked in a CFO Hotline survey.
Data from Ziegler polls tend to be heavily weighted toward continuing care retirement communities. This survey, however, also included some responses from affordable senior housing providers and non-CCRC providers as well, Lisa McCracken, director of senior living research and development at Ziegler, told the McKnight’s Business Daily.
“The difference across the size of the organization stood out to me,” McCracken said. “There is a clear relationship between the size of the organization and the likelihood of the CEO being a full member of the board.”
The poll didn’t collect information on the size of respondents’ multi-site organizations, McCracken noted. She said she suspects, however, that larger multi-site organizations would be more likely to have a higher percentage of CEOs on their respective boards.
In reporting the survey results, McCracken noted that some states have laws that prevent CEOs from being named to their boards. Some states that allow board membership also restrict the role to that of a non-voting member.
“Additionally, this decision can also be one debated by ethicists, so boards should fully process the advantages and drawbacks of their particular structure and assess what is the right model for their organization,” she wrote in the analysis.
This article has been updated from a previous version.