Performance-based pay gains traction in veterinary practice
Bottom line
EquiManagement is spotlighting a practical example of performance-based compensation in veterinary medicine, featuring Christine Staten, DVM, MBA, who said she introduced a tiered compensation structure at her mixed animal practice to create clearer advancement pathways, strengthen motivation, and improve care quality. The article, adapted from The Business of Practice podcast and conference remarks, frames performance-based pay less as a pure commission model and more as a structured system that ties compensation growth to defined skills, responsibilities, and performance benchmarks. (equimanagement.com)
Why it matters: Compensation design is a workforce issue as much as a financial one. For veterinary professionals, especially in mixed and equine practice, pay models can shape recruitment, retention, culture, and after-hours coverage. Industry resources from AAEP and AVMA-linked reporting suggest production-plus-base and other incentive models are now common, but they work best when practices clearly explain how compensation is calculated, what behaviors are rewarded, and how pay aligns with quality care rather than volume alone. (aaep.org)
What to watch: Expect continued discussion around hybrid compensation models, transparency, and whether incentive pay can support retention without undermining team culture or clinical decision-making. (aaep.org)
EquiManagement’s latest Business of Practice coverage zeroes in on a question many clinics are actively revisiting: how to pay veterinarians and staff in a way that supports growth without creating confusion or burnout. In the piece, Christine Staten, DVM, MBA, describes how she implemented performance-based compensation in her mixed animal practice using a tiered structure designed to clarify wage decisions, reward development, and strengthen motivation. (equimanagement.com)
The topic lands at a time when compensation has become one of the profession’s most sensitive workforce levers. In equine and mixed practice, employers are competing not only with neighboring clinics, but also with small animal employers that may offer different schedules, compensation packages, and emergency expectations. AAEP says emergency duty remains a major reason equine veterinarians leave practice or avoid the field, and it has encouraged practices to think carefully about compensation policies that support recruitment and retention. (aaep.org)
What appears to distinguish Staten’s approach is the emphasis on tiers and advancement pathways, rather than a narrow revenue-only formula. According to EquiManagement’s report, she presented the system as a way to simplify pay decisions while encouraging employee growth. Her broader professional background also adds context: Staten says she has tested business systems in a 10-doctor, 50-team-member, two-location practice in Tucson, Arizona, suggesting the model comes from an operator dealing with real staffing and management pressures, not just theory. (equimanagement.com)
That nuance matters because performance-based compensation in veterinary medicine can mean very different things in practice. AVMA-linked reporting cited by the National Association of Federal Veterinarians says base salary plus production, often called ProSal, has gained popularity and accounted for more than half of associate veterinarian compensation models in 2024. At the same time, that reporting cautioned that practices considering production-based pay should explain exactly how the formula works, including inclusions, exclusions, and the effect on income stability. (members.nafv.org)
Industry discussion also shows why the subject remains unsettled. AAEP has published ethics-focused discussion on whether compensation models align with practice values, including questions about salary versus production pay, benefits, motivation, and culture. Older EquiManagement podcast coverage captured a more skeptical view from equine practice consultant Mike Pownall, DVM, MBA, who argued that traditional production pay may be losing favor. Taken together, the conversation suggests the field is moving away from one-size-fits-all commission structures and toward more customized hybrids that try to balance incentives with predictability and team cohesion. (aaep.org)
Why it matters: For veterinary professionals, compensation structure affects much more than payroll expense. It influences whether associates feel secure early in their careers, whether emergency work is fairly recognized, whether support staff see a path for advancement, and whether clinical priorities stay aligned with patient care. In mixed animal practice especially, where caseload, margins, and on-call demands can vary widely across service lines, a tiered or hybrid model may offer a way to reward contribution without relying solely on raw production. That said, the success of any model likely depends on transparent formulas, regular performance reviews, and guardrails that prevent pay incentives from distorting medical judgment. (aaep.org)
What to watch: The next phase of this conversation will likely center on implementation details: how practices define measurable performance, how they compensate emergency and nonbillable work, and whether new models improve retention over time. Expect more attention from practice managers, consultants, and professional groups as clinics look for compensation systems that appeal to today’s associates and support sustainable care delivery. (aaep.org)