ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
Neil E. de Crescenzo | ||
Age: 60 Director since: 2017 Other Public Boards: 0 |
Occupation: • President and Chief Executive Officer, Change Healthcare Inc.Director Highlights: Mr. de Crescenzo brings significant management and leadership experience as a member of our Management team and from his service in multiple management and leadership positions within large providers of software and technology products and services, as well as his many years of experience in the healthcare software and information technology industries. Experience: • Mr. de Crescenzo has served as President and Chief Executive Officer of Change Healthcare since 2017. Prior to joining Change Healthcare, he served as Chief Executive Officer and a member of the board of directors of Legacy Change Healthcare from 2013 to the closing of the Joint Venture Transactions in 2017. Prior to Change Healthcare, he served as Senior Vice President and General Manager of Oracle’s Global Health Sciences business from 2006 to 2013. Prior to that, he spent a decade at IBM Corporation from 1996 to 2006.• He currently serves on the Advisory Board of the Middle Tennessee American Heart Association, the board of directors of the Nashville Health Care Council and the executive committee of the board of directors of the Healthcare Leadership Council. |
Howard L. Lance | ||
Age: 66 Director since: 2017 Independent Chairman of the Board Other Public Boards: 3 |
Occupation: • Former President and Chief Executive Officer, Maxar Technologies Inc.Director Highlights: Mr. Lance brings over three decades of extensive management and leadership skills developed in his many years as a senior executive officer, and director of large, public companies. This experience provides an informed perspective on industry matters, technology, government and regulatory concerns pertinent to Change Healthcare’s business. Experience: • Mr. Lance was appointed Chairman of the Board of Directors of Change Healthcare in 2020, following the completion of the split-off of McKesson Corporation’s ownership interest in Change Healthcare. He also serves as Chairman of the board of directors of Summit Materials. He began serving on the board of Summit Materials in 2012 and was appointed Chairman of the board of directors in 2013. In February 2021, Mr. Lance was appointed as a director of New Vista Acquisition Corp., a special purpose acquisition company focused on emerging technologies for aerospace and defense markets. In June 2022, Mr. Lance was appointed to the board of directors of Mercury Systems, a leading defense electronics firm. In addition, Mr. Lance served on the board of directors for legacy Change Healthcare from 2012 to 2013 and was chairman of the board from 2013 to 2017.• Mr. Lance served as Executive Advisor to Blackstone between 2012 and 2016.• He previously served as President and Chief Executive Officer of Maxar Technologies from 2016 to 2019. He also served as Chairman, President and Chief Executive Officer of Harris Corporation from 2003 to 2011.• Mr. Lance served as a director on the boards of Ferrovial S.A. from 2014 to 2016, Eastman Chemical Company from 2005 to 2014, Stryker Corporation from 2009 to 2014, and Aviat Networks from 2007 to 2009.• Mr. Lance has been widely recognized for his business achievements and civic engagement. He received honorary Doctor of Science degrees from the University of Central Florida and the University of Florida, and an honorary Doctor of Humane Letters from Bradley University. He was appointed to the National Security Telecommunications Advisory Committee by President George W. Bush. He has been nationally honored by the American Business Awards, the American Electronics Association, and Ernst & Young. |
Nella Domenici | ||
Age: 61 Director since: 2020 Independent Committee Assignments: • Audit, Compliance Other Public Boards: 1 |
Occupation: • Former Chief Financial Officer, Dataminr Director Highlights: Ms. Domenici is a C-suite executive, board director, and philanthropist.Experience: • During 2020 and 2021, Ms. Domenici was the Chief Financial Officer and a member of the Executive Committee at Dataminr, a leading high-growth artificial intelligence company that is late-stage venture backed. In her senior executive role, Ms. Domenici was responsible for legal, compensation, strategy, accounting, financial planning and analysis, investor relations, corporate finance, fundraising, capital structure, tax M&A and partnership, and real estate and workplace operations.• Ms. Domenici serves on the board of directors of AllianceBernstein and on AllianceBernstein’s Audit and Risk committee, a position she has held since early 2020.• She previously served as Chief Financial Officer and a member of the Operating Committee from 2015 to 2018 at Bridgewater Associates, a hedge fund with more than $140 billion in assets under management. Her responsibilities included accounting, budgeting, revenue management, corporate finance and capital structure, tax, shareholder services, strategic initiatives, compensation, and technology investment. From 2012 to 2015, Ms. Domenici was a strategic advisor to Bridgewater’s Management Committee focusing on evolving governance, board and leadership initiatives.• Prior to joining Bridgewater, she held senior managerial, investment banking and strategic positions including: Citadel Investment Group, where she was a member of the Management Committee focusing on strategy and planning; Credit Suisse, where she was Head of Middle Market Mergers and Acquisitions; and The Monitor Consulting Group, where she focused on healthcare. In addition, she is a proven entrepreneur, having founded a successful consulting firm that advised family-owned, private equity, venture-backed and real estate companies.• Ms. Domenici is a dedicated advocate and champion in the areas of education, healthcare, and economic development. She co-founded the Excellent Schools of New Mexico, a leading nonprofit organization that supports charter schools in underserved communities, and serves on the Board of Regis High School in New York City, the county’s premier full-scholarship Jesuit college preparatory institution. In addition, she is on the board of Los Alamos National Laboratory Foundation, which is dedicated to improving education. Ms. Domenici previously served on the Board of One World Surgery, which provides access to quality surgical care globally. She was also a member of the Bipartisan Policy Center Behavioral Health Integration Task Force, where she championed initiatives addressing mental illness across the country. She currently serves on the advisory board of the International Folk-Art Market, which generates economic opportunities for folk artists worldwide, particularly women in developing countries.• Ms. Domenici graduated with an M.B.A. from Harvard Business School, where she was a Baker Scholar, and earned her J.D. from Georgetown University Law Center. |
Nicholas L. Kuhar | ||
Age: 36 Director since: 2019 Independent Committee Assignments: • Compensation, Nominating & Corporate Governance Other Public Boards: 0 |
Occupation: • Managing Director, Blackstone Inc. Director Highlights: Mr. Kuhar has significant financial and investment experience and strategic skills gained through his experience with Blackstone portfolio companies. Experience: • Mr. Kuhar is a Managing Director at Blackstone in the Private Equity Group, a position he has held since 2021. From 2014 until 2021, he was a Principal at Blackstone in the Private Equity Group.• He serves on the board of directors of private companies MB Aerospace and Signature Aviation.• Prior to Blackstone, Mr. Kuhar was at Bain Capital, where he evaluated and executed private equity investments across several industries in the U.S. and Japan.• Mr. Kuhar’s previous experience includes McKinsey & Company, where he was a member of the Corporate Finance practice.• He served on the board of directors of privately-held HealthMarkets, Inc. |
Diana McKenzie | ||
Age: 57 Director since: 2019 Independent Committee Assignments: • Audit, Compliance Other Public Boards: 2 |
Occupation: • Former Global Chief Information Officer, Workday, Inc. Director Highlights: Ms. McKenzie brings over three decades of significant management, technology, and healthcare industry experience to the Board. She is a technology leader and innovator with deep digital, technology, cybersecurity, regulation, and global operations experience and has directed teams for large biotechnology and pharmaceutical companies. Experience: • Ms. McKenzie has served as a Special Advisor of Brighton Park Capital since 2019. She has been an Executive in Residence at Metis Strategy, a management and strategy consulting firm since 2019. Ms. McKenzie is an Executive Advisor to World50’s CIO community and remains active as a CIO advisory council member for several VC firms.• She was appointed to the board of directors of Vertex Pharmaceuticals in June 2020 and also serves on the board of MetLife and on MetLife’s audit and finance and risk committees, a position she has held since 2018. She also joined the board of directors of Paradox, a private company, in July 2020.• She previously served as the first ever Global Chief Information Officer of Workday from 2016 to 2019 where she led the global business technology (IT) and security organization on a best-in-class • She served in leadership positions at Amgen for over a decade as Senior Vice President and Chief Information Officer and Vice President of Information Systems, responsible for leading Amgen’s Global IS Infrastructure, Enterprise Architecture and Information Systems Security and Compliance organizations from 2010 to 2016.• She served as Group Director at Eli Lilly and Company as the Information Officer, Product Development and Commercialization IT and a variety of Information Systems Leadership roles for over 17 years supporting Research & Development, Corporate Engineering, Human Resources, and IT Architecture, Strategy, and Planning.• She has been recognized by the National Diversity Council in 2015 as one of the nation’s Most Powerful Women in Technology and by the San Francisco Business Times on their Forever Influential Women’s list. |
Bansi Nagji | ||
Age: 57 Director since: 2017 Independent Committee Assignments: • Compensation, Nominating & Corporate Governance Other Public Boards: 0 |
Occupation: • President, Healthcare, GoodRx, Inc. Director Highlights: Mr. Nagji brings over 25 years of experience in healthcare, global strategic planning and development, growth management, innovation, and corporate M&A, and is a recognized thought leader. Experience: • Mr. Nagji previously served as Executive Vice President of Corporate Strategy and Business Development for McKesson Corporation, a position he held from 2015 to 2020. He was responsible for guiding strategy development with McKesson’s business unit leaders, leading mergers and acquisitions, and helping to foster innovation across the company.• Prior to joining McKesson, he served as a principal of Deloitte Consulting, LLP and Global Leader, Monitor Deloitte from 2013 to 2015.• He also served on the board of directors of Deloitte LLP between 2013 and 2015.• Prior to that, Mr. Nagji served at Monitor Group, a global strategy consulting firm, for 20 years where he was a senior partner and its President when the firm merged with Deloitte.• Mr. Nagji has authored several papers and articles on the topic of innovation, including articles for Harvard Business Review, Pharmaceutical Executive, The Conference Board Review, Rotman Magazine. • Mr. Nagji has been recognized multiple times by EMpower as a senior executive role model for minorities in the workplace. He is also an active supporter of several not-for-profit |
Philip M. Pead | ||
Age: 69 Director since: 2017 Independent Committee Assignments: • Audit, Compliance (Chair)Other Public Boards: 1 |
Occupation: • Managing Partner, Beacon Point Partners, LLC Director Highlights: Mr. Pead is an industry veteran with more than 25 years of experience in the software industry. As the former chairman and chief executive officer of several publicly traded healthcare companies, Mr. Pead brings significant leadership skills and intimate knowledge of the healthcare industry. He has extensive management experience, developed through years of integrating acquired companies, improving operating efficiencies and margins, managing complex regulatory compliance matters, and growing businesses. Experience: • Mr. Pead serves as Managing Partner at Beacon Point Partners, LLC a position he has held since 2007.• Mr. Pead served on the board of legacy Change Healthcare from 2012 to 2017, and from 2009 to 2011.• In March 2021, Mr. Pead was appointed as a director of Agile Growth Corp, a special purpose acquisition company, and also serves as chair of the audit committee. In addition, Mr. Pead serves on the board of Modernizing Medicine, Inc., a private company, a position he has held since 2018, where he is the chair of the compliance committee and a member of the compensation committee.• He served as Executive Chairman, President and Chief Executive Officer of Progress Software Corp. from 2012 until 2016.• Prior to that, he served as Executive Chairman and Interim Chief Executive Officer of Progress Software Corp., a position he briefly held in 2012 and as non-executive chairman beginning in 2012, having joined the Progress Software Corp. board of directors as Non-Executive Chairman in 2011.• Prior to that, Mr. Pead served as Chairman of the board of directors of Allscripts Healthcare Solutions, Inc. from 2010 to 2012 following Allscripts’s acquisition of Eclipsys Corporation where he had served as President and Chief Executive Officer since 2009.• Mr. Pead serves on the board of directors and as Secretary of the Posse Foundation, a non-profit that is focused on expanding the pool from which top colleges and universities can recruit young leaders from diverse backgrounds. He is the founding Chairman of the Posse Foundation in Atlanta. |
Phillip W. Roe | ||
Age: 61 Director since: 2017 Independent Committee Assignments: • Audit (Chair), ComplianceOther Public Boards: 0 |
Occupation: • Senior Advisor, Investment Committee, Martin Ventures, LLC Director Highlights: Mr. Roe brings over 20 years of experience in the healthcare industry as a former chief executive officer and chief financial officer. He brings to Change Healthcare extensive leadership, financial, and accounting experience. Experience: • Mr. Roe serves as Senior Advisor and a member of the Investment Committee at Martin Ventures, a position he has held since 2018. Martin Ventures is a private family-owned venture capital fund focused on healthcare technology.• Previously, he served as Chief Executive Officer of Martin Ventures from 2015 to 2018.• He served on the board for legacy Change Healthcare from 2015 to 2017.• Mr. Roe served as Senior Vice President of Finance at Tenet Healthcare from 2013 to 2015, following Tenet’s acquisition of Vanguard Health Systems. At Vanguard Health Systems, he served as the Executive Vice President, Chief Financial Officer and Treasurer from 2007 to 2013 until it was acquired by Tenet.• Prior to that, he was the Chief Accounting Officer of Vanguard Health Systems. | |
|
Neil P. Simpkins | ||
Age: 55 Director since: 2017 Independent Committee Assignments: • Compensation (Chair), Nominating & Corporate GovernanceOther Public Boards: 2 |
Occupation: • Executive Advisor, Blackstone Inc.Director Highlights: Mr. Simpkins brings over two decades of significant financial and investment experience and executive management and strategic skills gained through his experience with Blackstone portfolio companies, along with deep institutional knowledge coupled with his additional board experience with several private and public companies. Experience: • Mr. Simpkins is an Executive Advisor at Blackstone. Prior to that role, he served as a Senior Managing Director at Blackstone in the Private Equity Group from 1998 to 2022 and had global responsibility for portfolio management activities and investments in the healthcare services and industrial sectors.• Mr. Simpkins serves as Chairman of the board of directors of Gates Corporation in addition to serving on the board of Team Health, a private company.• Previously, he served on the board of directors for legacy Change Healthcare from 2011 to 2017, and he was Chairman of the Board from 2011 to 2013.• Before joining Blackstone, Mr. Simpkins was a Principal at Bain Capital. Prior to joining Bain Capital, Mr. Simpkins was a consultant at Bain & Company in the Asia Pacific region and in London.• He serves as Chairman of Americans for Oxford, Inc., Oxford University’s primary charitable organization in North America. Mr. Simpkins is also a Trustee of the Brooklyn Museum and serves as the Treasurer. | |
|
Robert J. Zollars | ||
Age: 65 Director since: 2017 Independent Committee Assignments: • Nominating & Corporate Governance (Chair), CompensationOther Public Boards: 1 |
Occupation: • Senior Advisor, Frazier Healthcare Partners LLCDirector Highlights: Mr. Zollars brings over three decades of management and industry experience, having led a number of healthcare companies. He also has substantial governance experience as a National Association of Corporate Directors Board Leadership fellow and having served on a number of corporate boards of directors. Experience: • Mr. Zollars serves as Senior Advisor at Frazier Healthcare Partners, a position he has held since 2015. He has served as a member of the board of directors at Five9 since 2013 and private companies Kate Farms and Recuro Health since 2015 and 2022, respectively. He has served as chairman of the board of directors at Parata (formerly TCGRx) since 2017 and as lead director at GenapSys, both private companies.• Mr. Zollars served as Chairman and Chief Executive Officer of Vocera Communications, a leading provider of intelligent communication solutions for mobile workers, which focuses on healthcare communications and workflow, from 2007 to 2013.• He served one year as Chief Executive Officer of Wound Care Solutions, an operator of outsourced chronic wound care centers, from 2006 to 2007. Mr. Zollars served as Chairman and Chief Executive Officer at healthcare technology company Neoforma from 1999 to 2006, having arrived after a long career in healthcare technology and services.• He serves as Co-Chairman of the Trustees of Arizona State University. |
Committees |
Diana McKenzie |
Neil Simpkins |
Nicholas Kuhar |
Philip Pead |
Phillip Roe |
Robert Zollars |
Nella Domenici |
Bansi Nagji | ||||||||
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Audit |
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Compensation |
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Nominating & Corporate Governance |
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Compliance |
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indicates the chair of the relevant committee. | ||
✓ | indicates committee membership. |
Audit Committee | ||
Members: Nella Domenici, Diana McKenzie, Philip Pead |
• Engage and monitor independent registered public accounting firm • Review the quality and integrity of the accounting and financial reporting process • Oversee internal audit • Review and approve legal and regulatory requirements applicable to financial statements and accounting | |
Compensation Committee | ||
Members: Nicholas Kuhar, Bansi Nagji, Robert Zollars |
• Set compensation for executive officers and directors • Monitor incentive and equity-based compensation plans • Oversee, approve and evaluate the continuity/succession planning process | |
Nominating and Corporate Governance Committee | ||
Members: Nicholas Kuhar, Bansi Nagji, Neil Simpkins |
• Establish and monitor board selection, composition and evaluation • Recommend, review and establish committee selection, composition and evaluation • Review the adequacy and development of sound corporate governance | |
Compliance Committee | ||
Members: Nella Domenici, Diana McKenzie, Phillip Roe |
• Oversee compliance with applicable laws and regulations • Review the code of business conduct • Review the compliance and ethics program plan • Advise on policies and procedures • Oversee and monitor the compliance, privacy and information security programs • Direct compliance and ethical education and training programs • Manage procedures for receipt, retention, and treatment of complaints • Review the function, organizational structure, and activities of the compliance functions |
Item 11. |
Executive Compensation |
Neil de Crescenzo |
Fredrik Eliasson |
Kriten Joshi | ||
President and Chief Executive Officer | Executive Vice President and Chief Financial Officer | Executive Vice President and President, Network Solutions (1) | ||
Steven B. Martin |
Roderick O’Reilly |
|||
Executive Vice President, Enterprise Technology | Executive Vice President and President, Software and Analytics (2) |
(1) |
Effective as of April 10, 2022, Mr. Joshi was promoted and assumed the role of President, Software and Analytics in addition to continuing in his role as Executive Vice President and President, Network Solutions. |
(2) |
Effective April 10, 2022, Mr. O’Reilly transitioned from his position of Executive Vice President and President, Software and Analytics to a consulting role with the Company. |
• | Attract, Retain, Motivate and Reward. |
• | Pay for Performance. |
• | Competitive Compensation. |
• | Stockholder Alignment. |
Fiscal Year 2022 Peer Group | ||||
Alliance Data Systems Corp. | CoreLogic, Inc. | Nuance Communications Inc. | ||
Allscripts Healthcare Solutions Inc. | Gartner Inc. | Paychex, Inc. | ||
Broadridge Financial Solutions, Inc. | Global Payments Inc. | PTC Inc. | ||
Cadence Design Systems | Jack Henry & Associates, Inc. | Science Applications International Corp. | ||
CDK Global Inc. | Leidos Holdings Inc. | Synopsys, Inc. | ||
Cerner Corp. | ManTech International Corporation | Teradata Corp. | ||
Citrix Systems, Inc. | NortonLifeLock Inc. | Unisys Corp. |
• | base salary; |
• | annual cash incentive compensation; |
• | long-term equity-based awards; |
• | non-qualified deferred compensation plans; and |
• | retirement benefits. |
Threshold 50% Achievement Tier |
Target 100% Tier |
Achievement |
Maximum 200% Tier |
Achievement |
||||||||||||||||||||
Categories |
Revenue |
Adjusted EBITDA |
Revenue |
Adjusted EBITDA |
Revenue |
Adjusted EBITDA |
||||||||||||||||||
Corporate and Corporate Business Units: Network Solutions, Software and Analytics, Technology-Enabled Services |
94.0 | % | 88.7 | % | 100 | % | 100 | % | 105.6 | % | 111.0 | % |
Measure |
Weighting |
Target ($ in millions) |
Actual ($ in millions) |
2022 Payout Percentage (% of Target) |
2022 Achievement Factor (%) |
2022 Weighted Achievement Factor (%) |
||||||||||||||||||
Corporate Adjusted EBITDA |
60 | % | $ | 1,026.1 | $ | 1,071.1 | 104.4 | % | 139.9 | % | 83.9 | % | ||||||||||||
Corporate Revenue |
40 | % | $ | 3,200.4 | $ | 3,269.0 | 102.1 | % | 138.3 | % | 55.3 | % | ||||||||||||
ATTAINMENT |
139.3 |
% |
Measure |
Weighting |
Target ($ in millions) |
Actual ($ in millions) |
2022 Payout Percentage (% of Target) |
2022 Achievement Factor (%) |
2022 Weighted Achievement Factor (%) |
||||||||||||||||||
Corporate Adjusted EBITDA |
30 | % | $ | 1,026.1 | $ | 1,071.1 | 104.4 | % | 139.9 | % | 42.0 | % | ||||||||||||
Corporate Revenue |
20 | % | $ | 3,200.4 | $ | 3,269.0 | 102.1 | % | 138.3 | % | 27.7 | % | ||||||||||||
Network Solutions Adjusted EBITDA |
30 | % | $ | 382.1 | $ | 446.4 | 116.8 | % | 200.0 | % | 60.0 | % | ||||||||||||
Network Solutions Revenue |
20 | % | $ | 788.4 | $ | 868.4 | 110.1 | % | 200.0 | % | 40.0 | % | ||||||||||||
ATTAINMENT |
$ |
169.6 |
% |
Measure |
Weighting |
Target ($ in millions) |
Actual ($ in millions) |
2022 Payout Percentage (% of Target) |
2022 Achievement Factor (%) |
2022 Weighted Achievement Factor (%) |
||||||||||||||||||
Corporate Adjusted EBITDA |
30 | % | $ | 1,026.1 | $ | 1,071.1 | 104.4 | % | 139.9 | % | 42.0 | % | ||||||||||||
Corporate Revenue |
20 | % | $ | 3,200.4 | $ | 3,269.0 | 102.1 | % | 138.3 | % | 27.7 | % | ||||||||||||
Software and Analytics Adjusted EBITDA |
30 | % | $ | 555.9 | $ | 562.0 | 101.1 | % | 110.0 | % | 33.0 | % | ||||||||||||
Software and Analytics Revenue |
20 | % | $ | 1,594.0 | $ | 1,612.9 | 101.2 | % | 121.2 | % | 24.2 | % | ||||||||||||
ATTAINMENT |
126.9 |
% |
• | For Mr. de Crescenzo: |
• | For Mr. Eliasson: |
• | For Mr. Joshi: |
• | For Mr. Martin: |
• | For Mr. O’Reilly: |
Name |
Eligible Base Salary ($) |
Target AIP Award (% of Base Salary) |
Target AIP Opportunity ($) |
Combined Performance Factor (%) |
Actual Payout ($) |
|||||||||||||||
Mr. de Crescenzo |
$ | 892,500 | 150 | % | $ | 1,338,750 | 200.0 | (1) |
$ | 1,785,000 | (1) | |||||||||
Mr. Eliasson |
$ | 682,500 | 85 | % | $ | 580,125 | 139.3 | $ | 808,114 | |||||||||||
Mr. Joshi |
$ | 560,000 | 85 | % | $ | 476,000 | 254.4 | $ | 1,210,944 | |||||||||||
Mr. Martin |
$ | 630,000 | 85 | % | $ | 535,500 | 139.3 | $ | 745,952 | |||||||||||
Mr. O’Reilly |
$ | 564,739 | (2) |
85 | % | $ | 480,028 | 126.9 | $ | 609,156 |
(1) | Mr. de Crescenzo’s AIP payout is capped at 200% of base salary under the terms of his employment agreement. The Compensation Committee elected to pay Mr. de Crescenzo a discretionary bonus of $79,879 that would otherwise have been payable under the AIP without the 200% cap and based upon his combined performance factor. |
(2) | This amount reflects Mr. O’Reilly’s base salary in US dollars converted from Canadian dollars using an exchange rate of $0.79948 as in effect on March 31, 2022. |
Name and Principal Position |
Year |
Salary ($) |
Bonus ($) (4) |
Stock Awards ($) (5) |
Option Awards ($) |
Non-Equity Incentive Plan Compensation ($) (6) |
All Other Compensation ($) (7) |
Total ($) |
||||||||||||||||||||||||
Neil E. de Crescenzo |
2022 | 881,875 | 79,879 | 6,481,300 | — | 1,785,000 | 101,708 | 9,329,762 | ||||||||||||||||||||||||
President and Chief Executive Officer |
2021 | 850,000 | 625,409 | 6,283,183 | — | 1,700,000 | 64,507 | 9,523,099 | ||||||||||||||||||||||||
2020 | 850,000 | — | 7,496,062 | — | 1,124,805 | 30,981 | 9,501,848 | |||||||||||||||||||||||||
|
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Fredrik J. Eliasson |
2022 | 674,375 | — | 3,510,707 | — | 808,114 | 10,532 | 5,003,728 | ||||||||||||||||||||||||
Executive Vice President, Chief Financial |
2021 | 650,000 | — | 3,403,388 | — | 1,007,677 | 9,975 | 5,071,040 | ||||||||||||||||||||||||
Officer |
2020 | 650,000 | — | 2,607,338 | — | 487,416 | 10,612 | 3,755,366 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Kriten J. Joshi (1) |
2022 | 532,721 | — | 1,350,274 | — | 1,210,944 | 42,061 | 3,136,000 | ||||||||||||||||||||||||
Executive Vice President and President, |
2021 | 450,883 | — | 1,308,986 | — | 998,559 | 9,975 | 2,768,403 | ||||||||||||||||||||||||
Network Solutions |
2020 | 450,883 | — | 1,303,654 | — | 477,913 | 9,800 | 2,242,250 | ||||||||||||||||||||||||
|
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Steven B. Martin |
2022 | 622,500 | — | 1,350,274 | — | 745,952 | 8,556 | 2,727,282 | ||||||||||||||||||||||||
Executive Vice President, Enterprise |
2021 | 581,818 | 250,000 | 2,928,984 | — | 942,420 | 15,234 | 4,718,456 | ||||||||||||||||||||||||
Technology |
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|
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Roderick O’Reilly (2)(3) |
2022 | 558,016 | — | 1,350,274 | — | 609,156 | 4,505 | 2,521,951 | ||||||||||||||||||||||||
Executive Vice President and President, |
2021 | 508,895 | 102,846 | 1,308,986 | — | 712,911 | 536,452 | 3,170,090 | ||||||||||||||||||||||||
Software and Analytics |
2020 | 392,440 | 90,627 | 1,499,185 | — | 237,150 | 891,547 | 3,110,949 | ||||||||||||||||||||||||
|
(1) | Effective as of April 10, 2022, Mr. Joshi was promoted and assumed the role of President, Software and Analytics in addition to continuing in his role as Executive Vice President and President, Network Solutions. |
(2) | Effective April 10, 2022, Mr. O’Reilly transitioned from his position of Executive Vice President and President, Software and Analytics to a consulting role with the Company. |
(3) | The base salary amount for Mr. O’Reilly is his base salary in Canadian dollars as converted to U.S. dollars using an exchange rate of $0.79948, as in effect on March 31, 2022. |
(4) | For Mr. de Crescenzo, the Bonus amount reflects a discretionary cash bonus of $79,879 that would otherwise have been earned under the AIP, but for the cap of such bonus equal to 200% of Mr. de Crescenzo’s base salary as set forth in his employment agreement. The terms of the AIP are described more fully under “Compensation Discussion and Analysis —Annual Cash Incentive Program—Fiscal Year 2022” |
(5) | The amounts reported in this column reflect the aggregate grant date fair value of the awards. We calculate the grant date fair value of these awards in accordance with FASB ASC Topic 718, using the assumptions discussed in Note 18: Incentive Compensation Plans of the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2022. |
(6) | The amounts reported in this column represent the amounts earned by our named executive officers under the AIP, which a portion of the AIP payments were paid in calendar year 2021. The terms of the AIP and the acceleration of a portion of the AIP payment are described more fully under “Compensation Discussion and Analysis —Annual Cash Incentive Program—Fiscal Year 2022” Potential Payments Upon Termination or Change in Control—Severance Benefits-Employment Arrangements. |
(7) | The amounts reported in the “All Other Compensation” column reflect the sum of: (i) the amounts contributed by the Company to the 401(k) Savings Plan and the Supplemental 401(k) Plan, or the Group Registered Retirement Plan, as applicable. The narrative following the table below describes these components of All Other Compensation. As Mr. O’Reilly’s employment terminated after the end of fiscal year 2022, his severance amounts are not included in the Summary Compensation Table. For information regarding the payments and benefits that Mr. O’Reilly received upon his termination, see “ Potential Payments Upon Termination or Change in Control—Severance Benefits—Employment Arrangements. |
Name |
Defined Contribution Plan Matching Contribution ($) (a) |
Supplemental 401(k) Plan Contributions ($) (b) |
Total ($) |
|||||||||
N. de Crescenzo |
12,381 | 89,327 | 101,708 | |||||||||
F. Eliasson |
10,532 | — | 10,532 | |||||||||
S. Martin |
8,556 | — | 8,556 | |||||||||
K. Joshi |
10,972 | 31,090 | 42,061 | |||||||||
R. O’Reilly |
4,505 | — | 4,505 |
(a) | Amounts disclosed in this column reflect Company contributions to our 401(k) Savings Plan and/or, in the case of Mr. O’Reilly, the Group Registered Retirement Plan, our defined contribution plan that we sponsor for our Canadian employees. |
(b) | Amounts disclosed in this column reflect Company contributions to the Supplemental 401(k) Savings Plan. |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) |
All Other Stock Awards: Number of Shares or Units (2) |
Grant Date Fair Value of Stock and Option Awards |
||||||||||||||||||||||
Name |
Grant Date |
Threshold ($) |
Target ($) |
Maximum ($) |
(#) |
($) |
||||||||||||||||||
N. de Crescenzo |
||||||||||||||||||||||||
AIP |
0 | 1,338,750 | 1,785,000 | |||||||||||||||||||||
RSUs |
4/1/2021 | 289,473 | 6,481,300 | |||||||||||||||||||||
F. Eliasson |
||||||||||||||||||||||||
AIP |
0 | 580,125 | 1,740,375 | |||||||||||||||||||||
RSUs |
4/1/2021 | 156,798 | 3,510,707 | |||||||||||||||||||||
K. Joshi |
||||||||||||||||||||||||
AIP |
0 | 476,000 | 1,428,000 | |||||||||||||||||||||
RSUs |
4/1/2021 | 60,307 | 1,350,274 | |||||||||||||||||||||
S. Martin |
||||||||||||||||||||||||
AIP |
0 | 535,500 | 1,606,500 | |||||||||||||||||||||
RSUs |
4/1/2021 | 60,307 | 1,350,274 | |||||||||||||||||||||
R. O’Reilly |
||||||||||||||||||||||||
AIP |
0 | 480,028 | 1,440,085 | |||||||||||||||||||||
RSUs |
4/1/2021 | 60,307 | 1,350,274 |
(1) | The amounts reported in these columns reflect the full year annual cash incentive award opportunity range under our AIP for fiscal year 2022, the terms of which are summarized under “ Compensation Discussion and Analysis—Annual Cash Incentive Program—Fiscal Year 2022” |
(2) | Reflects time-vesting RSUs granted in fiscal year 2022. The grant date fair value of the RSUs was computed in accordance with Topic 718 based on the closing share price on the date of grant. See footnote 5 to the Summary Compensation Table. Note that no PSUs were granted in fiscal year 2022, see the discussion regarding PSUs under “Compensation Discussion and Analysis—Performance Stock Units—Fiscal Year 2022” |
Option Awards |
Stock Awards |
|||||||||||||||||||||||||||||||||||||||
Name |
Grant Date |
Number of Securities Underlying Unexercised Options Exercisable (#) |
Number of Securities Underlying Unexercised Options Unexercisable (#) |
Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
Option Exercise Price ($) |
Option Expiration Date |
Number of Shares or Units of Stock That Have Not Vested (#) |
Market Value of Shares or Units of Stock That Have Not Vested (#) |
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (15) |
||||||||||||||||||||||||||||||
N. de Crescenzo |
3/1/2017 | 792,784 | (1) |
$ | 8.07 | 9/30/2023 | ||||||||||||||||||||||||||||||||||
3/1/2017 | 316,000 | (1) |
19.58 | 9/30/2023 | ||||||||||||||||||||||||||||||||||||
8/8/2017 | 632,000 | (2) |
18.99 | 8/8/2027 | ||||||||||||||||||||||||||||||||||||
8/8/2017 | 632,000 | (4) |
18.99 | 8/8/2027 | ||||||||||||||||||||||||||||||||||||
5/25/2018 | 71,00 | (2) |
23,700 | (2) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||
5/25/2018 | 94,800 | (5) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||||
8/20/2019 | 49,774 | (6) |
1,085,073 | |||||||||||||||||||||||||||||||||||||
8/20/2019 | 199,099 | (9) |
4,340,358 | |||||||||||||||||||||||||||||||||||||
5/1/2020 | 314,595 | (3) |
0.38 | 9/30/2023 | ||||||||||||||||||||||||||||||||||||
6/17/2020 | 131,694 | (10) |
2,870,929 | |||||||||||||||||||||||||||||||||||||
10/29/2020 | 220,264 | (12) |
4,801,755 | |||||||||||||||||||||||||||||||||||||
4/1/2021 | 217,104 | (14) |
4,732,867 | |||||||||||||||||||||||||||||||||||||
F. Eliasson |
5/25/2018 | 695,200 | (2) |
(2) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||
5/25/2018 | 695,200 | (5) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||||
8/20/2019 | 17,313 | (8) |
377,423 | |||||||||||||||||||||||||||||||||||||
8/20/2019 | 69,252 | (9) |
1,509,694 | |||||||||||||||||||||||||||||||||||||
6/17/2020 | 71,334 | (11) |
1,555,081 | |||||||||||||||||||||||||||||||||||||
10/29/2020 | 119,309 | (12) |
2,600,936 | |||||||||||||||||||||||||||||||||||||
4/1/2021 | 117,598 | (14) |
2,563,636 | |||||||||||||||||||||||||||||||||||||
K. Joshi |
3/1/2017 | 181,620 | (1) |
8.07 | 12/5/2023 | |||||||||||||||||||||||||||||||||||
3/1/2017 | 158,000 | (1) |
19.58 | 12/5/2023 | ||||||||||||||||||||||||||||||||||||
8/8/2017 | 189,600 | (2) |
18.99 | 8/8/2027 | ||||||||||||||||||||||||||||||||||||
8/8/2017 | 189,600 | (4) |
18.99 | 8/8/2027 | ||||||||||||||||||||||||||||||||||||
5/25/2018 | 28,440 | (2) |
9,480 | (2) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||
5/25/2018 | 37,920 | (5) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||||
8/20/2019 | 8,656 | (6) |
188,701 | |||||||||||||||||||||||||||||||||||||
8/20/2019 | 8,656 | (7) |
188,701 | |||||||||||||||||||||||||||||||||||||
8/20/2019 | 34,626 | (9) |
754,847 | |||||||||||||||||||||||||||||||||||||
5/1/2020 | 72,070 | (3) |
0.38 | 12/5/2023 | ||||||||||||||||||||||||||||||||||||
6/17/2020 | 41,154 | (10) |
897,157 | |||||||||||||||||||||||||||||||||||||
10/29/2020 | 45,888 | (12) |
1,000,358 | |||||||||||||||||||||||||||||||||||||
4/1/2021 | 60,307 | (14) |
1,314,693 | |||||||||||||||||||||||||||||||||||||
S. Martin |
4/13/2020 | 115,384 | (13) |
2,515,371 | ||||||||||||||||||||||||||||||||||||
6/17/2020 | 41,154 | (11) |
897,157 | |||||||||||||||||||||||||||||||||||||
10/29/2020 | 45,888 | (12) |
1,000,358 | |||||||||||||||||||||||||||||||||||||
4/1/2021 | 60,307 | (14) |
1,314,693 | |||||||||||||||||||||||||||||||||||||
R. O’Reilly |
8/8/2017 | 322,320 | (2) |
18.99 | 8/8/2027 | |||||||||||||||||||||||||||||||||||
8/8/2017 | 322,320 | (4) |
18.99 | 8/8/2027 | ||||||||||||||||||||||||||||||||||||
5/25/2018 | 120,870 | (2) |
40,290 | (2) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||
5/25/2018 | 161,160 | (5) |
18.99 | 5/25/2028 | ||||||||||||||||||||||||||||||||||||
8/20/2019 | 9,954 | (8) |
216,997 | |||||||||||||||||||||||||||||||||||||
8/20/2019 | 39,819 | (9) |
868,054 | |||||||||||||||||||||||||||||||||||||
6/17/2020 | 27,436 | (11) |
598,105 | |||||||||||||||||||||||||||||||||||||
10/29/2020 | 45,888 | (12) |
1,000,358 | |||||||||||||||||||||||||||||||||||||
4/1/2021 | 45,230 | (14) |
986,014 |
(1) | Reflects stock options that were fully vested on the date of grant. These stock options were granted in connection with our “Joint Venture” with McKesson Corporation (“McKesson”) as replacement awards for vested or deemed vested Legacy Change Healthcare stock options. |
(2) | Reflects time-vesting stock options that vest or have vested in equal 25% installments on the first through fourth anniversaries of (i) the March 1, 2017 vesting start date for the options that expire on August 8, 2027, (ii) the April 6, 2018 vesting start date for the options that expire on May 25, 2028, and (iii) the March 19, 2018 vesting start date for Mr. Eliasson’s time-vesting options that expire on May 25, 2028, subject to continued employment through such vesting dates. |
(3) | Reflects fully-vested stock appreciation rights, representing stock options of eRx Network that were rolled over into stock appreciation rights of Change Healthcare Inc. in connection with our acquisition of eRx Network on May 1, 2020. The eRx awards are described more fully below under “Equity Awards–Legacy eRx Replacement RSUs–Omnibus Plan.” |
(4) | Reflects exit-vesting options. The exit-vesting options were granted with an exercise price equal to the fair value of Change Healthcare Inc. common stock on the date of grant and generally vest, subject to the award holder’s continued employment through the vesting date, to the extent affiliates of Blackstone sell more than 25% of the equity interests of the Company (the “exit event”). If the equity interests are sold at a weighted average price in excess of $33.23 per share, the options will fully vest upon the exit event. If sold below the specified weighted average price, one-third of the options will vest on the exit event, and the remaining two-thirds will vest in equal installments on the first and second anniversary of the exit event, subject to continued employment through each date. These exit-vesting options were modified in May 2018 to impose a time-based vesting requirement after the performance vesting requirements described in this paragraph are met. See “Equity Awards–Exit-Vesting Options–2009 Equity Plan |
(5) | Reflects exit-vesting options. The exit-vesting options were granted with an exercise price equal to the fair value of Change Healthcare Inc. common stock on the date of grant and generally vest, subject to the award holder’s continued employment through the applicable vesting date, in three equal annual installments beginning on the date on which affiliates of Blackstone sell more than 25% of the equity interests of the Company. |
(6) | Represents a grant of restricted stock units, which will vest in full on August 1, 2023, subject to continued employment on such date. |
(7) | Due to requirements imposed by the Tax Matters Agreement between McKesson and the Company in order to preserve McKesson’s tax-free exit, certain of our executives could not receive shares of our common stock for two years following McKesson’s exit as an investor in the Company, which occurred in March 2020. Therefore, Messrs. de Crescenzo and Joshi received cash-settled RSUs for awards that will vest within that two-year period. One-third of these cash-settled RSUs vested on August 1, 2020 due to the “McKesson Exit” in March 2020, one-third of the RSUs vested on August 1, 2021 and the remaining one-third will vest on August 1, 2022, subject to continued employment on this date. For Mr. de Crescenzo, the RSUs scheduled to vest on August 1, 2022 were accelerated to vest on December 28, 2021 and are no longer outstanding. See the discussion regarding the vesting acceleration under “Compensation Discussion and Analysis—Acceleration of the Payment of Fiscal Year 2022 AIP Bonuses and the Vesting of Certain Equity Awards |
(8) | Reflects time-vesting RSUs granted in fiscal year 2020 that vest over four years, with 50% of the RSUs vesting on August 1, 2021 and 25% of the RSUs vesting on each of August 1, 2022 and August 1, 2023, subject to continued employment on each such date; provided, that if the McKesson Exit occurred prior to the second anniversary of our initial public offering, then 25% of the RSUs would vest on August 20, 2020. Since the McKesson Exit occurred in March 2020, 25% of the RSUs vested on August 20, 2020, and the remaining 75% of the RSUs vest in equal installments on each of August 1, 2021, August 1, 2022 and August 1, 2023, subject to continued employment on each such date. The RSUs held by Messrs. Eliasson and O’Reilly that were originally scheduled to vest on August 1, 2022 were accelerated to vest on December 28, 2021. See the discussion regarding the vesting acceleration under “ Compensation Discussion and Analysis—Acceleration of the Payment of Fiscal Year 2022 AIP Bonuses and the Vesting of Certain Equity Awards |
(9) | Reflects PSUs which vest according to revenue and Adjusted EBITDA targets as determined following the end of the three-year performance period and the earned PSUs will vest in July 2023. In the table above, the number and market value of units that vest based on revenue and Adjusted EBITDA reflect target performance, because under terms of the Merger Agreement such PSUs will be converted to time-vesting RSUs of UnitedHealth Group assuming target performance. Note that the PSUs granted in fiscal year 2020 have vested at target and not at the actual performance goals achieved, and are not subject to the additional one-year time vesting after the end of the three-year performance period, and no PSUs were granted in fiscal year 2022, see the discussion regarding PSUs under “Compensation Discussion and Analysis—Performance Stock Units—Fiscal Year 2022” |
(10) | Represents a grant of stock-settled RSUs that vest in equal installments, with one-third vesting on each of June 17, 2022, June 17, 2023 and June 17, 2024, subject to continued employment on such date. For Mr. de Crescenzo, the RSUs scheduled to vest on June 17, 2022 were accelerated to vest on December 28, 2021. See the discussion regarding the vesting acceleration under “Compensation Discussion and Analysis—Acceleration of the Payment of Fiscal Year 2022 AIP Bonuses and the Vesting of Certain Equity Awards |
(11) | Reflects time-vesting RSUs granted in fiscal year 2021 that vest over four years, with 25% vesting on each of June 17, 2021, June 17, 2022, June 17, 2023 and June 17, 2024, subject to continued employment on each such date. In accordance with the vesting schedule, 25% of the RSUs vested on June 17, 2021, and the RSUs originally scheduled to vest on June 17, 2022 for Messrs. Eliasson and O’Reilly were accelerated to vest on December 28, 2021. See the discussion regarding the vesting acceleration under “ Compensation Discussion and Analysis—Acceleration of the Payment of Fiscal Year 2022 AIP Bonuses and the Vesting of Certain Equity Awards |
(12) | Reflects PSUs which vest according to revenue and Adjusted EBITDA targets as determined following the end of the three-year performance period and the earned PSUs will vest in June 2023. In the table above, the number and market value of units that vest based on revenue and Adjusted EBITDA reflect target performance, because under terms of the Merger Agreement such PSUs will be converted to time-vesting RSUs of UnitedHealth Group assuming target performance. |
(13) | Reflects time-vesting RSUs granted in connection with Mr. Martin’s commencement of employment of April 13, 2020 and which vest over four years, with 25% of the RSUs vesting on April 13, 2021, April 13, 2022, April 13, 2023 and April 13, 2024, subject to continued employment on each vesting date. |
(14) | Reflects time-vesting RSUs granted in fiscal year 2022 that vest over four years in equal installments on each of April 1, 2022, April 1, 2023, April 1, 2024 and April 1, 2025, subject to continued employment on each such date. RSUs originally scheduled to vest on April 1, 2022 were accelerated to vest on December 28, 2021 for Messrs. de Crescenzo, Eliasson, and O’Reilly. See the discussion regarding the vesting acceleration under “ Compensation Discussion and Analysis—Acceleration of the Payment of Fiscal Year 2022 AIP Bonuses and the Vesting of Certain Equity Awards |
(15) | Amounts reported are based on the closing price of our common stock of $21.80 as of March 31, 2022 multiplied by the number of reported shares. |
Option Awards |
Stock Awards |
|||||||||||||||
Name |
Number of Shares Acquired on Exercise (#) |
Value Realized on Exercise ($) |
Number of Shares Acquired on Vesting (#) (1) |
Value Realized on Vesting ($) (2) |
||||||||||||
N. de Crescenzo |
— | — | 640,489 | $ | 14,428,914 | |||||||||||
F. Eliasson |
— | — | 145,161 | $ | 3,175,065 | |||||||||||
S. Martin |
— | — | 52,180 | $ | 1,181,100 | |||||||||||
K. Joshi |
— | — | 116,699 | $ | 2,688,020 | |||||||||||
R. O’Reilly |
— | — | 62,423 | $ | 1,363,397 |
(1) | Represents the gross number of shares that vested in fiscal year 2022.Vested stock awards in fiscal year 2022 include 2.5 exit-vesting restricted stock and Legacy eRx Replacement RSUs held by Messrs. de Crescenzo and Joshi with realized value of $7,798,703 and $2,183,624, respectively. 2.5x exit-vesting restricted stock and Legacy eRx Replacement RSUs vested based on the achievement of performance goals that Blackstone certified in June 2021. See “ Equity Awards––2.5x Exit-Vesting Restricted Stock–Omnibus Plan Equity Awards–Legacy eRx Replacement RSUs–Omnibus Plan |
(2) | The value realized upon vesting of RSUs is calculated by multiplying the number of RSUs vested by the closing price of Change Healthcare common stock on the day of vesting. |
Executive Contributions in Last FY |
Registrant Contributions in Last FY |
Aggregate Earnings (Loss) in Last FY |
Aggregate Withdrawals/ Distributions |
Aggregate Balance at Last Fiscal Year End |
||||||||||||||||
Name |
($) (1) |
($) (2) |
($) (3) |
($) |
($) (4) |
|||||||||||||||
Neil de Crescenzo |
||||||||||||||||||||
Supplemental 401(k) Plan |
638,047 | 89,327 | (51,134 | ) | — | 885,484 | ||||||||||||||
DCAP |
164,688 | — | (95,861 | ) | — | 1,814,638 | ||||||||||||||
| ||||||||||||||||||||
Kriten Joshi |
||||||||||||||||||||
Supplemental 401(k) Plan |
53,297 | 31,090 | (3,073 | ) | — | 81,313 | ||||||||||||||
DCAP |
934,997 | — | (14,897 | ) | 920,100 |
(1) | Amounts reported in this column reflect contributions made by the named executive officer with respect to fiscal year 2022 into the DCAP and/or Supplemental 401(k) Plan. The amounts reported as contributions to the Supplemental 401(k) Plan are reported as compensation for fiscal year 2022 under Salary in the Summary Compensation Table above. The amounts reported as contributions to the DCAP are reported as compensation for fiscal year 2022 under Non-Equity Incentive Plan Compensation in the Summary Compensation Table above. |
(2) | Amounts reported in this column reflect contributions by the Company with respect to fiscal year 2022 to the Supplemental 401(k) Plan. There are no employer contributions to the DCAP. The amounts reported are reported as compensation for fiscal year 2022 under “All Other Compensation” in the Summary Compensation Table above. |
(3) | Because amounts included in this column do not reflect above-market or preferential earnings, none of these amounts are reported as compensation for fiscal year 2022 in the Summary Compensation Table above. |
• | a lump sum payment in an amount equal to 12 months of the executive’s base salary in effect on the date of termination; |
• | a lump sum payment in an amount equal to the total amount of the monthly COBRA health insurance premiums that the Company and the executive would pay for employees with similar coverage during the 12-month period following the termination; and |
• | if the termination occurs within 12 months after a change in control, an amount equal to the bonus the executive would have received under the AIP at one-times the executive’s full target payout for the year in which the termination occurs. |
Name |
Payment Element |
Termination by us Without “Cause,” “Good Reason” or Qualifying Termination (b) |
Termination by us Without “Cause,” “Good Reason” or Qualifying Termination within 12 months of Change in Control (c) |
Change in Control Only (d) |
Death (e) |
Disability (e) |
||||||||||||||||
N. de Crescenzo |
Salary Continuation | $ | 1,785,000 | $ | 1,785,000 | — | $ | 1,785,000 | $ | 1,785,000 | ||||||||||||
Bonus Payment | $ | 2,677,500 | $ | 2,677,500 | — | $ | 2,677,500 | $ | 2,677,500 | |||||||||||||
COBRA Payments | $ | 30,355 | $ | 30,355 | — | $ | 30,355 | $ | 30,355 | |||||||||||||
Equity Award Acceleration (a) |
$ | $ | 19,939,888 | $ | 66,597 | $ | 17,830,983 | $ | 8,264,416 | |||||||||||||
|
||||||||||||||||||||||
F. Eliasson |
Salary Continuation | $ | 682,500 | $ | 682,500 | — | $ | $ | ||||||||||||||
Bonus Payment | $ | 580,125 | $ | 580,125 | — | $ | $ | |||||||||||||||
COBRA Payments | $ | 29,088 | $ | 29,088 | — | $ | $ | |||||||||||||||
Equity Award Acceleration (a) |
$ | — | $ | 10,560,283 | $ | — | $ | 8,606,771 | $ | 3,243,651 | ||||||||||||
|
||||||||||||||||||||||
K. Joshi |
Salary Continuation | $ | 560,000 | $ | 560,000 | — | $ | $ | ||||||||||||||
Bonus Payment | $ | $ | 476,000 | — | $ | $ | ||||||||||||||||
COBRA Payments | $ | 24,104 | $ | 24,104 | — | $ | $ | |||||||||||||||
Equity Award Acceleration (a) |
$ | $ | 5,010,427 | $ | 26,639 | $ | 4,344,457 | $ | 2,267,670 | |||||||||||||
|
||||||||||||||||||||||
S. Martin |
Salary Continuation | $ | 630,000 | $ | 630,000 | — | $ | $ | ||||||||||||||
Bonus Payment | $ | $ | 535,500 | — | $ | $ | ||||||||||||||||
COBRA Payments | $ | 17,530 | $ | 17,530 | — | $ | $ | |||||||||||||||
Equity Award Acceleration (a) |
$ | $ | 5,727,579 | — | $ | 5,727,579 | $ | 2,038,676 | ||||||||||||||
|
||||||||||||||||||||||
R. O’Reilly (f) |
Salary Continuation | $ | 564,739 | $ | 564,739 | — | $ | $ | ||||||||||||||
Bonus Payment | $ | $ | 480,028 | — | $ | $ | ||||||||||||||||
COBRA Payments | $ | 3,130 | $ | 3,130 | — | $ | $ | |||||||||||||||
Equity Award Acceleration (a)(g) |
$ | $ | 5,141,322 | $ | 113,215 | $ | 3,669,529 | $ | 1,534,960 | |||||||||||||
|
(a) | Amounts reported assume that PSUs vest at target. |
(b) | For all individuals except Messrs. de Crescenzo and Eliasson, the bonus payment is made only if termination occurs within 12 months following a change in control. Messrs. de Crescenzo and Eliasson also receive the disclosed amounts in this column for termination by the executive for “good reason.” |
(c) | All outstanding equity awards will fully vest in the event of a termination of employment by the Company without cause or a resignation for good reason within 12 months following a change in control. Amounts reported assume that PSUs vest at target. |
(d) | Amounts reported with respect to a Change in Control Only reflect the value of the time-vesting options that fully vest and become exercisable upon a change in control. No amounts have been reported with respect to the exit-vesting options as we have assumed such awards would not have vested upon a change in control because the performance condition would not have been satisfied. |
(e) | RSUs and PSUs granted in August 2019, RSUs granted in June 2020 and PSUs granted in October 2020, and RSUs granted in April 2021 fully vest (based on actual performance for PSUs) in the event of death and prorated amounts will vest in the event of retirement or disability. Only Mr. de Crescenzo is eligible for salary continuation, bonus payment and COBRA payments upon death or disability. |
(f) | The amounts reflected in this table with respect to Mr. O’Reilly are amounts that were actually paid or the value of the benefit provided to him upon his termination of employment, which amounts are in U.S. dollars as converted from Canadian dollars using an exchange rate of $0.79948. In addition, Mr. O’Reilly may take advantage of an executive physical exam paid by the Company during the 12 months following his termination of employment of a value of up to US$11,400. |
(g) | No equity awards were accelerated in connection with Mr. O’Reilly’s termination of employment. He continues to vest in his equity awards, as he is providing services to the Company as a consultant. |
Director |
Cash Retainer Fees |
Stock Awards (1) |
Total |
|||||||||
Howard L. Lance |
$ | 300,000 | $ | 165,198 | $ | 465,198 | ||||||
Nella Domenici |
$ | 120,000 | $ | 165,198 | $ | 285,198 | ||||||
Diana McKenzie |
$ | 120,000 | $ | 165,198 | $ | 285,198 | ||||||
Bansi Nagji |
$ | 120,000 | $ | 165,198 | $ | 285,198 | ||||||
Philip M. Pead |
$ | 150,000 | $ | 165,198 | $ | 315,198 | ||||||
Phillip W. Roe |
$ | 150,000 | $ | 165,198 | $ | 315,198 | ||||||
Robert J. Zollars |
$ | 135,000 | $ | 165,198 | $ | 300,198 |
(1) | Stock awards were granted on June 22, 2021 using the 60-day average closing price ended May 31, 2021 to calculate the number of awards. The amounts reported in this column reflect the aggregate grant date fair value of the awards. We calculate the grant date fair value of these awards in accordance with FASB ASC Topic 718 based on the closing share price on the date of grant. As of March 31, 2022, the aggregate number of outstanding option awards held by each non-employee director was as follows: Mr. Lance: 206,882 stock appreciation rights and 75,596 options; Mr. Pead: 11,439 stock appreciation rights and 60,428 options; Mr. Roe: 11,439 stock appreciation rights and 60,428 options and Mr. Zollars: 31,600 options. In connection with certain joint venture transactions in 2017, a portion of the vested or deemed vested Legacy Change Healthcare stock options awarded to Messrs. Lance, Pead and Roe was cashed out and the remaining portion was replaced with vested stock options of the Company. Similarly, a portion of Mr. Lance’s vested or deemed vested Legacy Change Healthcare stock appreciation rights were cashed out and a portion were replaced with vested stock appreciation rights of the Company. Unvested exit-vesting Legacy Change Healthcare stock appreciation rights held by Mr. Lance were replaced with 2.5x exit-vesting stock appreciation rights of the Company with vesting conditions substantially similar to the original awards. In connection with our acquisition of eRx Networks on May 1, 2020, Messrs. Lance, Pead and Roe elected to roll over vested stock option in eRx Networks into vested stock appreciation rights in the Company. The vesting conditions and other material terms are substantially similar to the vested replacement stock options and unvested replacement 2.5x exit-vesting restricted stock awards described above under “Outstanding Equity Awards at 2022 Fiscal Year-End |
• | Each person who is known by us to own beneficially more than 5% of our common stock; |
• | Each current director and nominee for director; |
• | Each named executive officer; and |
• | All directors and executive officers as a group. |
Name |
Share Beneficially Owned as of July 1, 2022 |
Number of Shares Subject to Option Exercisable as of July 1, 2021 (or which become exercisable within 60 days of this date) |
Number of RSUs that Vest within 60 Days of July 1, 2022(7) |
Total |
Percent of Class |
|||||||||||||||
Blackstone |
59,620,253 | (1) | 59,620,253 | 32.42 | % | |||||||||||||||
UnitedHealth Group Incorporated |
59,046,102 | (2) | 59,046,102 | 32.10 | % | |||||||||||||||
The Vanguard Group |
21,424,231 | (3) | 21,424,231 | 11.65 | % | |||||||||||||||
Clarkston Capital Partners, LLC |
18,886,565 | (4) | 18,886,565 | 10.27 | % | |||||||||||||||
Camber Capital Management LP |
16,978,020 | (5) | 16,978,020 | 9.23 | % | |||||||||||||||
Named Executive Officers and Directors |
||||||||||||||||||||
Neil de Crescenzo |
373,000 | 2,077,851 | 230,497 | 2,681,348 | 1.46 | % | ||||||||||||||
Fredrik Eliasson(6) |
240,139 | 926,934 | 85,099 | 1,252,172 | * | |||||||||||||||
Kriten Joshi |
185,603 | 642,980 | 55,127 | 883,710 | * | |||||||||||||||
Steven Martin |
84,732 | 0 | 20,316 | 105,048 | * | |||||||||||||||
Roderick O’Reilly |
37,492 | 644,640 | 39,819 | 721,951 | * | |||||||||||||||
Howard Lance |
218,856 | 225,281 | 0 | 444,137 | * | |||||||||||||||
Nella Domenici |
21,622 | 0 | 0 | 21,622 | * | |||||||||||||||
Nicholas Kuhar |
0 | 0 | 0 | 0 | * | |||||||||||||||
Diana McKenzie |
33,048 | 0 | 0 | 33,048 | * | |||||||||||||||
Bansi Nagji |
31,622 | 0 | 0 | 31,622 | * | |||||||||||||||
Philip Pead |
94,984 | 60,428 | 0 | 155,412 | * | |||||||||||||||
Phillip Roe |
33,048 | 60,428 | 0 | 93,476 | * | |||||||||||||||
Neil Simpkins |
0 | 0 | 0 | 0 | * | |||||||||||||||
Robert Zollars |
33,048 | 31,600 | 0 | 64,648 | * | |||||||||||||||
All Executive Officers and Directors as a Group (19 persons)(8) |
1,599,583 |
5,424,232 |
591,156 |
7,614,971 |
* | Less than 1% |
(1) | Reflects 59,040,668 shares directly held by BCP Summit Holdings L.P., 5,434 shares directly held by BF1P Summit Holdings L.P. and 574,151 shares directly held by GSO COF Facility LLC (together with BCP Summit Holdings L.P. and BFIP Summit Holdings L.P.. the “Blackstone Funds”). The general partner of BCP Summit Holdings L.P. is BCP Summit Holdings GP L.L.C. The general partner of BFIP Summit Holdings L.P. is BFIP Summit Holdings GP L.L.C. The sole member of BCP Summit Holdings GP L.L.C, is Blackstone Management Associates VI L.L.C. The sole member of Blackstone Management Associates VI L.L.C, is BMA VI L.L.C. The managing member of BMA VI L.L.C, is Blackstone Holdings III L.P. The sole member of BFIP Summit Holdings GP L.L.C, is BCP VI Side-by-Side Side-by-Side |
10154. The address of GSO COF Facility LLC and Blackstone Alternative Credit Advisors LP is c/o Blackstone Alternative Credit Advisors LP, 345 Park Avenue, New York, New York 10154. As of July 1, 2021, Blackstone entities have pledged, hypothecated or granted security interests in 59,046,102 of the shares of Change Healthcare Common Stock held by them pursuant to a margin loan agreement with customary default provisions. In the event of a default under the margin loan agreement, the secured parties may foreclose upon any and all shares of Change Healthcare Common Stock pledged to them and may seek recourse against the borrower. |
(2) | Based on the Schedule 13D filed by UnitedHealth Group, UnitedHealth Group may be deemed to share voting and dispositive power with respect to shares owned beneficially or of record by certain investment funds affiliated with Blackstone as a result of certain provisions contained in the Support Agreement dated as of January 5, 2021, by and among UnitedHealth Group and certain investment funds affiliated with Blackstone as described further in the Schedule 13D. As of January 5, 2021, the total number of shares owned beneficially or of record by such investment funds affiliated with Blackstone and subject to the Support Agreement was 59,046,102. The address of the principal executive offices of UnitedHealth Group is 9900 Bren Road East, Minnetonka, Minnesota 55343. |
(3) | Based on the Schedule 13G filed by The Vanguard Group on February 10, 2021, reflects shared voting power over 174,069 shares, sole dispositive power over 19,546,681 shares, and shared dispositive power over 356,488 shares. The business address of The Vanguard Group is 100 Vanguard Blvd., Malvern, PA 19355. |
(4) | Based on the Schedule 13G filed with the SEC on February 16, 2021, Clarkston Capital Partners, LLC, Clarkston Companies, Inc., Modell Capital LLC, Jeffrey A. Hakala, Gerald W. Hakala and Jeremy J. Modell share voting and dispositive power over 19,292,375 shares. The business address of these persons is 91 West Long Lake Road, Bloomfield Hills, MI 48304. |
(5) | Based on the Schedule 13G filed with the SEC on July 13, 2020, Camber Capital Management LP and Stephen DuBois share voting and dispositive power over 16,600,000 shares. The business address of these persons is 101 Huntington Avenue, Suite 2101, Boston, MA 02199. |
(6) | 140,000 shares are held by a trust, of which Mr. Eliasson and his spouse are trustees. |
(7) | Includes the RSUs granted and vesting within the 60-day period following July 1, 2022 in connection with the attainment of the previously granted performance-based incentive awards. |
(8) | Reflects security ownership of our current directors and executive officers, which does not include securities owned by Roderick O’Reilly, who ceased serving as an executive officer of the Company effective April 10, 2022. |
Number of securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted-average exercise price of outstanding options, warrants and rights |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
||||||||||
Plan Category |
(a) |
(b) |
(c) |
|||||||||
Equity compensation plan approved by security holders: |
||||||||||||
Omnibus Plan (1) |
13,311,249 | $ | 0 | 37,978,393 | ||||||||
ESPP (2) |
0 | n/a | 14,582,873 | |||||||||
2009 Equity Plan |
11,910,814 | $ | 17.43 | 0 | ||||||||
Equity compensation plans not approved by security holders |
0 | $ | 0 | 0 | ||||||||
|
|
|
|
|
|
|||||||
Total (3) |
25,222,063 | (4) |
$ | 17.43 | (5) |
52,561,266 | ||||||
|
|
|
|
|
|
(1) | The number of shares available for awards under the Omnibus Plan is automatically increased on the first day of each fiscal year by a number of shares of common stock equal to the lesser of (x) 15,000,000 shares of Common Stock, (y) 5% of the total number of shares of Common Stock outstanding on the last day of the immediately preceding fiscal year, and (z) a lower number of shares of Common Stock as determined by the Board. |
(2) | The ESPP is a tax-qualified Code Section 423 stock purchase plan under which eligible employees are permitted to purchase shares of our Common Stock at a 15% discount. |
(3) | The amounts shown include securities issuable under the Omnibus Plan, ESPP and upon settlement of outstanding awards under the 2009 Equity Plan. |
(4) | Includes an aggregate of 9,243,519 shares of common stock issuable in settlement of outstanding awards of RSUs, 3,885,158 shares of common stock issuable in settlement of outstanding awards of PSUs, 11,761,129 shares of common stock issuable upon exercise of outstanding stock options, 182,572 shares of common stock issuable upon settlement of outstanding deferred stock units (“DSUs”), and 149,685 shares of common stock issuable upon settlement of outstanding stock appreciation rights. The number of shares to be issued in respect of outstanding performance-based awards assumes that the maximum level of performance applicable to awards will be achieved. As discussed above, subsequent to fiscal year end, the Compensation Committee determined that the PSUs granted in fiscal year 2020 would vest at target (100%). |
(5) | Weighted-average exercise price of outstanding options; excludes RSUs, PSUs and DSUs because these awards have no exercise price. |
FY22 |
FY21 |
|||||||
Audit Fees |
$ | 5,544,180 | $ | 4,398,778 | ||||
Audit-Related Fees |
$ | 399,235 | $ | 466,000 | ||||
Tax Fees |
$ | 171,057 | $ | 177,052 | ||||
All Other Fees |
$ | 117,000 | $ | — | ||||
TOTAL |
$ |
6,231,472 |
$ |
5,041,830 |
(a)(1) | Financial Statements – The consolidated financial statements, and related notes, together with the report of 10-K. |
(a)(2) | Financial Statement Schedules – All schedules have been omitted as they are not required, or the required information is shown in the financial statements or notes thereto. |
(a)(3) | Exhibits |
Exhibit No. |
Description | |
31.3 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. | |
31.4 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL). |
CHANGE HEALTHCARE INC. | ||||||
Date: July 29, 2022 | By: | /s/ Fredrik Eliasson | ||||
Fredrik Eliasson | ||||||
Executive Vice President, Chief Financial Officer |