Good Afternoon Corporate Teammates,

Our goal at NorthStar is to be a destination employer and, as such, we’re always evolving based on employee feedback and business need. As part of that evolution as an organization, we are excited to announce a meaningful change to the 2023 Corporate Bonus structure.   

Historically, NorthStar Anesthesia has paid out corporate bonuses based upon Corporate EBITDA performance. EBITDA is a key indicator of a business’s performance, profitability, and value and is a very common metric used by companies to assess their financial performance. In years where NorthStar exceeded its EBITDA target, bonus payouts could be 125%. In years such as 2022 when NorthStar did not achieve its EBITDA target, the payout was 75%. In essence, the budget (75% payout) controlled the individual bonus amounts (75% of target).  

Having the corporate team aligned around a shared EBITDA goal did incentivize us to work together; however, as we grow and evolve as a company this approach limits our ability to recognize members of the team and their unique contributions.  

NorthStar believes in a pay for performance culture – where individuals are rewarded based on their contributions.  To support this, 2023 Corporate Bonuses will be based on individual performance. The budget will still be based on Corporate EBITDA, meaning the bonus pool could be 125% if NorthStar exceeds its EBITDA goal, or 100% if NorthStar achieves its EBITDA goal.   

Once the bonus pool has been established at the department level, department leaders will assign bonuses based on your individual contributions over the 2023 calendar year. So, a 100% funding pool does not mean everyone will receive a 100% bonus payout. A teammate whose Performance Rating is “Far Exceeds Expectations” could see a higher payout depending on the available budget and performance across the team. This will allow us to reward those teammates who consistently go above and beyond! 

What are your next steps? We want to have all corporate teammates’ goals in Workday by this Wednesday, May 24th. Please ensure your 2023 goals are aligned with your department and are entered into Workday.  

I know this is a lot to digest, which is why this is the first step in an ongoing education process. We will be reviewing the philosophy behind this decision at tomorrow's Corporate Townhall (May 23rd), and the HR team will have follow-up Q&A sessions the first week in June.  More details to come… 

Kind Regards, 

Chad Chow

Chief Human Resources Officer