Nrc Health DEF 14A, filed Apr 11, 2024

Nrc Health (NRC)

DEF 14A 2024-04-11 For: 2024-05-08

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Added on June 12, 2026

About this DEF 14A

Nrc Health filed this DEF 14A on April 11, 2024.

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☐	Preliminary Proxy Statement
☐	Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
☑	Definitive Proxy Statement
☐	Definitive Additional Materials
☐	Soliciting Material Pursuant to §240.14a-12

☑	No fee required
☐	Fee paid previously with preliminary materials
☐	Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11

	Page

General Information about the Annual Meeting	1
Proposal No. 1 – Election of Directors	3
Principal Shareholders	14
Proposal No. 2 – Ratification of the Appointment of Independent Registered Public Accounting Firm	15
Compensation Discussion and Analysis	16
Proposal No. 3 – Non-Binding, Advisory Vote on Executive Compensation	33
Fees Paid to Independent Registered Public Accounting Firm	34
Proxy Card	A-1

Board Diversity Matrix
		As of April 11, 2024				As of April 6, 2023
Total Number of Directors		6				6
		Female	Male	Non- Binary	Did Not Disclose Gender	Female	Male	Non- Binary	Did Not Disclose Gender
Part I: Gender Identity
	Directors	2	4	0	0	2	4	0	0
Part II: Demographic Background
	African American or Black	0	1	0	0	0	1	0	0
	Alaskan Native or Native American	0	0	0	0	0	0	0	0
	Asian	1	0	0	0	1	0	0	0
	Hispanic or Latinx	0	0	0	0	0	0	0	0
	Native Hawaiian or Pacific Islander	0	0	0	0	0	0	0	0
	White	1	3	0	0	1	3	0	0
	Two or More Races or Ethnicities	0	0	0	0	0	0	0	0
	LGBTQ+	1				0
	Did Not Disclose Demographic Background	0				0

Director	Fees Earned or Paid in Cash		Option Awards⁽¹⁾		All Other Compensation			Total
Donald M. Berwick	$	50,000	$	100,006		-		$	150,006

Parul Bhandari	$	50,000	$	100,006	$	31,150	⁽²⁾	$	181,156

Stephen H. Lockhart	$	50,000	$	100,006		-		$	150,006

John N. Nunnelly	$	75,000	$	100,006		-		$	175,006

Penny A. Wheeler	$	50,000	$	100,006		-		$	150,006

	Shares Beneficially Owned
Name of Beneficial Owner	Shares			% ⁽¹⁾
Directors and Named Executive Officers ⁽²⁾
Michael D. Hays		113,910	⁽³⁾⁽⁴⁾		*
Kevin R. Karas		65,349	⁽⁴⁾⁽⁶⁾		*
Helen L. Hrdy		81,565	⁽⁴⁾		*
Jona S. Raasch		11,263			*
Donald M. Berwick		40,753	⁽⁴⁾		*
Parul Bhandari		31,542	⁽⁴⁾		*
Stephen H. Lockhart		33,575	⁽⁴⁾		*
John N. Nunnelly		80,485	⁽⁴⁾		*
Penny A. Wheeler		33,575	⁽⁴⁾		*
All directors, nominees, and executive officers (as of the Record Date) as a group (eleven persons)		480,754	⁽⁵⁾		2.0	%

Other Holders
Amandla MK Trust and Patrick E. Beans, as the Special Holdings Direction Advisor under this Trust ⁽⁷⁾		4,755,317			19.9	%
Common Property Trust, Common Property Trust LLC and Thomas Richardson, as Trustee of Common Property Trust and Manager of Common Property Trust LLC⁽⁸⁾		3,854,284			16.1	%
Kayne Anderson Rudnick Investment Management LLC ⁽⁹⁾		3,191,401			13.4	%

	✔	Conservative pay policy with total Named Executive Officer and director compensation positioned below the median

	✔	Direct link between pay and performance that aligns business strategies with shareholder value creation

	✔	Annual say-on-pay votes

	✔	No tax gross-ups

	✔	No excessive perquisites for executives

	✔	No re-pricing or back-dating of stock options or similar awards

	✔	Appropriate balance between short- and long-term compensation that discourages short-term risk taking at the expense of long-term results

	✔	Clawback Policy

Name	Position
Michael D. Hays	Chief Executive Officer
Kevin R. Karas	Senior Vice President-Finance, Chief Financial Officer, Treasurer, and Secretary⁽¹⁾
Helen L. Hrdy	Chief Customer Officer⁽²⁾
Jona S. Raasch	Former Chief Operating Officer⁽³⁾

Base Salary as a Percentage of Total Compensation
Michael D. Hays	65	%
Kevin R. Karas	65	%
Helen L. Hrdy	65	%
Jona S. Raasch	62	%

Name and Principal Position	Year	Salary ($)		Option Awards ($)⁽²⁾		Non-Equity Incentive Plan Compensation ($)		All Other Compensation ($)⁽³⁾		Total ($)

Michael D. Hays	2023	$	127,400	$	64,455		--	$	3,711	$	195,566
Chief Executive Officer	2022	$	127,400	$	49,527		--	$	4,246	$	181,173
President	2021	$	127,400	$	49,595	$	35,672	$	4,427	$	217,094

Kevin R. Karas	2023	$	285,000	$	144,181		--	$	7,417	$	436,598
Former Senior Vice President-	2022	$	285,000	$	110,792		--	$	7,814	$	403,606
Finance, Chief Financial	2021	$	285,000	$	110,954	$	79,800	$	6,798	$	482,552
Officer, Treasurer, and
Secretary⁽¹⁾

Helen L. Hrdy	2023	$	285,000	$	144,181		--	$	6,507	$	435,688
Chief Customer	2022	$	285,000	$	110,792		--	$	6,305	$	402,097
Officer⁽¹⁾	2021	$	285,000	$	110,954	$	79,800	$	6,943	$	482,697

Jona S. Raasch	2023	$	253,846	$	151,770		--	$	6,570	$	412,186
Former Chief	2022	$	300,000	$	116,628		--	$	8,008	$	424,636
Operating Officer⁽¹⁾	2021	$	300,000	$	116,803	$	84,000	$	5,351	$	506,154

		Estimated Future Payouts Under Non-Equity Incentive Plan Awards⁽¹⁾
Name	Grant Date	Threshold ($)⁽²⁾		Target ($)		Maximum ($)		All Other Option Awards: No. of Securities Underlying Options (#)⁽³⁾		Exercise or Base Price of Option Awards ($)⁽²⁾		Closing Price on Date of Grant ($)		Grant Date Fair Value of Stock and Option Awards ($)

Michael D. Hays	1/4/2023								4,909	$	38.93	$	38.36	$	64,455

			--	$	63,700	$	254,800

Kevin R. Karas	1/4/2023								10,981	$	38.93	$	38.36	$	144,181

			--	$	142,500	$	570,000

Helen L. Hrdy	1/4/2023								10,981	$	38.93	$	38.36	$	144,181

			--	$	142,500	$	570,000

Jona S. Raasch	1/4/2023								11,559	$	38.93	$	38.36	$	151,770

			--	$	150,000	$	600,000

⁽³⁾	The stock option awards were granted under the 2006 Equity Incentive Plan. The exercise price of the stock option awards was equal to the closing stock price on January 3, 2023, the day immediately prior to the grant date.

	Option Awards
Name	No. of Securities Underlying Unexercised Options (Exercisable) (#)			No. of Securities Underlying Unexercised Options (Unexercisable) (#)			Option Exercise Price ($)		Option Expiration Date

Michael D. Hays		2,904	⁽¹⁾⁽²⁾		-		$	18.80	01/07/24
		10,014	⁽¹⁾⁽³⁾		-		$	13.17	01/06/25
		9,145	⁽¹⁾⁽⁴⁾		-		$	15.23	01/05/26
		7,478	⁽¹⁾⁽⁵⁾		-		$	18.80	01/04/27
		5,193	⁽¹⁾⁽⁶⁾		-		$	36.80	01/03/28
		-			4,990	⁽¹⁾⁽⁷⁾	$	38.30	01/03/29
		-			2,904	⁽¹⁾⁽⁸⁾	$	65.80	01/03/30
		-			4,452	⁽¹⁾⁽⁹⁾	$	42.92	01/05/31
		-			4,523	^(1)(10)	$	42.25	01/04/32
		-			4,909	^(1)(11)	$	38.93	01/04/33

Kevin R. Karas		20,458	⁽¹⁾⁽⁴⁾		-		$	15.23	01/05/26
		16,728	⁽¹⁾⁽⁵⁾		-		$	18.80	01/04/27
		11,617	⁽¹⁾⁽⁶⁾		-		$	36.80	01/03/28
		-			11,162	⁽¹⁾⁽⁷⁾	$	38.30	01/03/29
		-			6,497	⁽¹⁾⁽⁸⁾	$	65.80	01/03/30
		-			9,960	⁽¹⁾⁽⁹⁾	$	42.92	01/05/31
		-			10,118	^(1)(10)	$	42.25	01/04/32
		-			10,981	^(1)(11)	$	38.93	01/04/33

Helen L. Hrdy		12,346	⁽¹⁾⁽⁴⁾		-		$	15.23	01/05/26
		12,619	⁽¹⁾⁽⁵⁾		-		$	18.80	01/04/27
		8,764	⁽¹⁾⁽⁶⁾		-		$	36.80	01/03/28
		-			8,420	⁽¹⁾⁽⁷⁾	$	38.30	01/03/29
		-			5,699	⁽¹⁾⁽⁸⁾	$	65.80	01/03/30
		-			9,960	⁽¹⁾⁽⁹⁾	$	42.92	01/05/31
		-			10,118	^(1)(10)	$	42.25	01/04/32
		-			10,981	^(1)(11)	$	38.93	01/04/33

Jona S. Raasch		21,535	⁽¹⁾⁽⁴⁾		-		$	15.23	01/05/26
		17,608	⁽¹⁾⁽⁵⁾		-		$	18.80	01/04/27
		12,228	⁽¹⁾⁽⁶⁾		-		$	36.80	01/03/28
		-			11,749	⁽¹⁾⁽⁷⁾	$	38.30	01/03/29
		-			6,839	⁽¹⁾⁽⁸⁾	$	65.80	01/03/30
		-			10,485	⁽¹⁾⁽⁹⁾	$	42.92	01/05/31
		-			10,651	^(1)(10)	$	42.25	01/04/32
		-			11,559	^(1)(11)	$	38.93	01/04/33

	Option Awards
Name	Number of Shares Acquired on Exercise (#)⁽¹⁾		Value Realized on Exercise ($)⁽²⁾
Michael D. Hays		10,938	$	249,386
Kevin R. Karas		-		-
Helen L. Hrdy		-		-
Jona S. Raasch		-		-

	⁽¹⁾	Shares of common stock.
	⁽²⁾	Amounts represent the product of the number of shares acquired on exercise multiplied by the excess of market price at exercise over the exercise price per share.

											Value of initial fixed $100 investment based on:
Year	Summary Compensation Table Total for PEO		Compensation Actually Paid to PEO ⁽¹⁾			Average Summary Compensation Table Total for Non-PEO NEOs		Average Compensation Actually Paid to Non-PEO NEOs ⁽²⁾			Total Shareholder Return		Peer group Total Shareholder Return⁽³⁾		Net Income		Revenue
															(in thousands)

2023	$	195,566	$	202,165		$	428,157	$	443,660			64.34		128.14	$	30,971	$	148,580
2022	$	181,173	$	184,526		$	410,113	$	418,936			59.60		109.59	$	31,800	$	151,568
2021	$	217,094	$	207,809		$	490,467	$	469,883			64.98		137.74	$	37,466	$	147,954
2020	$	254,504	$	(329,929	)	$	524,435	$	(1,183,288	)		65.91		119.96	$	37,260	$	133,277

Year	Summary Compensation Table Total for PEO		Deduct Stock and Option Awards Reported in the Summary Compensation Table			Add Awards Granted During the Covered FY that are Outstanding and Unvested as of the End of the Covered FY		Add Change in Fair Value as of the End of the Covered FY for Awards Granted in a Prior FY that are Outstanding and Unvested as of the End of the Covered FY			Add Change in Fair Value as of the Vesting Date for Awards Granted in a Prior FY that Vested During the Covered FY		Compensation Actually Paid to PEO

2023	$	195,566	$	(64,455	)	$	70,289	$	(4,749	)	$	5,514	$	202,165
2022	$	181,173	$	(49,527	)	$	54,018	$	(2,257	)	$	1,119	$	184,526
2021	$	217,094	$	(49,595	)	$	45,549	$	(7,756	)	$	2,517	$	207,809
2020	$	254,504	$	(60,258	)	$	18,190	$	(564,781	)	$	22,416	$	(329,929	)

	2023		2022
Audit Fees⁽¹⁾	$	509,500	$	486,500
Audit-Related Fees⁽²⁾		126,000		146,000
Tax Fees⁽³⁾		122,548		103,031
All Other Fees		--		--
Total	$	758,048	$	735,531