Ken Kim
About Ken Kim
Hyong (Ken) Kim, M.D., age 56, serves as Chief Medical Officer (CMO) of Alignment Healthcare (ALHC), a role he has held since September 2023; he previously served as ALHC’s CMO from June 2013 to March 2018. He is board‑certified in internal medicine, completed residency at Loma Linda University, and holds both a bachelor’s degree and M.D. from Indiana University . Under the leadership team including Dr. Kim, ALHC reported 2024 revenue of $2,703.6 million (+48.3% YoY) and first full‑year positive adjusted EBITDA of $1.3 million, with health plan membership up 58.6% YoY; ALHC’s cumulative TSR since the 2021 IPO equated to $64.99 on $100 invested as of 12/31/2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Alignment Healthcare | Chief Medical Officer | Jun 2013–Mar 2018; Sep 2023–Present | Executive clinical leadership for MA clinical model and performance |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| CareConnect MD | Chief Clinical Officer; Advisor | CCO: May 2022–Aug 2023; Advisor: Jul 2019–May 2022 | Responsible for clinical modeling, data analytics, and management of clinical staff |
| Center for Medicare & Medicaid Innovation (CMMI) | Chief Medical Officer | Jul 2018–Jul 2019 | Oversaw payment and clinical model development; chaired Quality Improvement Council for performance reviews of 36 CMMI models |
| CareMore Health | Hospitalist; Chief Medical Officer | CMO: Jun 2009–Mar 2013 | Integrated health plan/provider clinical leadership; progression from hospitalist to CMO |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base salary paid ($) | $140,000 | $555,693 |
| Target bonus % of salary | 85% | 85% |
| Target bonus opportunity ($) | $119,000 | $472,339 |
| Actual AIP cash payout ($) | $112,277 | $508,334 |
| Discretionary bonus ($) | $20,000 (paid in immediately vested stock) | — |
Performance Compensation
Annual Incentive Plan (AIP) – Corporate Metrics and Results (FY2024)
| Metric | Weighting | Target | Actual | Metric payout |
|---|---|---|---|---|
| Health plan membership (as of Jan 1, 2025) | 30% | 186,000 | 200% of target | 200% |
| Adjusted Gross Profit | 35% | $292.4M–$297.4M | 133% of target | 133% |
| Adjusted EBITDA | 35% | $0–$5M | 100% of target | 100% |
| Corporate AIP funding | — | — | — | 141.7% of target |
AIP payout for Dr. Kim (FY2024): Target bonus $472,339; corporate factor 141.7%; individual performance 110%; payout $631,871; 25% holdback payable in 4Q25 subject to CMS Star modifier (4.0 stars = no change; 4.5 or 5.0 stars = +35%; ≤3.5 stars = -25%) .
Long-Term Equity Incentives
- PSUs granted in March 2024 (target 140,000 units) earn 0–200% based on FY2026 Revenue (50%) and Adjusted EBITDA (50%); vest in a single tranche on or about Feb 28, 2027 upon certification .
- September 2023 PSUs earned at 116.8% for the 2024 performance period; for Dr. Kim, 29,200 vested at certification in March 2025 and 29,200 vest on Dec 31, 2025 (service condition) .
| PSU Plan | Metric | Weight | Target/Result | Vesting |
|---|---|---|---|---|
| 2024 PSU (granted 3/13/2024; 140,000 target) | Revenue | 50% | Earned on FY2026 performance; 0–200% | Vests on/around 2/28/2027 (if earned) |
| 2024 PSU (granted 3/13/2024; 140,000 target) | Adjusted EBITDA | 50% | Earned on FY2026 performance; 0–200% | Vests on/around 2/28/2027 (if earned) |
| 2023 PSU (granted 9/14/2023) | Health plan revenue growth | 60% | Aggregate 116.8% achieved | 50% vested at Mar 2025 certification; 50% vests 12/31/2025 |
| 2023 PSU (granted 9/14/2023) | At‑risk loyal MBR | 20% | Included in 116.8% | See above |
| 2023 PSU (granted 9/14/2023) | Adjusted EBITDA (less capex) | 20% | Included in 116.8% | See above |
Equity Ownership & Alignment
- Beneficial ownership: 62,000 shares (<1% of outstanding) as of April 7, 2025 .
- Stock ownership guidelines: Executive officers must hold stock equal to 2x base salary; compliance required within five years; all NEOs were in compliance as of 12/31/2024 .
- Hedging/pledging: Anti‑pledging and anti‑short‑sale policy; long‑term hedges (≥6 months) require pre‑clearance; no margin purchases or pledges permitted .
- Clawback: Policy applies to cash incentive compensation and equity awards in the event of a financial restatement, consistent with SEC and Nasdaq requirements .
Outstanding and Unvested Equity (as of 12/31/2024)
| Grant | Type | Unvested units | Market value |
|---|---|---|---|
| 3/13/2024 | RSU | 140,000 | $1,575,000 |
| 3/13/2024 | PSU (target) | 140,000 | $1,575,000 |
| 10/04/2023 | RSU | 255,102 | $2,869,898 |
| 9/14/2023 | PSU (probable at 116.8%) | 58,400 | $657,000 |
| Total | — | 593,502 | $6,676,898 |
Vesting Schedules (forward visibility)
| Grant | Schedule |
|---|---|
| 10/04/2023 RSU | 25% per year: ~85,034 vest on 10/4/2024, 10/4/2025, 10/4/2026, 10/4/2027 |
| 3/13/2024 RSU | 25% per year: 35,000 vest on 3/13/2025, 3/13/2026, 3/13/2027, 3/13/2028 |
| 9/14/2023 PSU | 50% vested at Mar 2025 certification; remaining 50% vests 12/31/2025 (service condition) |
| 3/13/2024 PSU | Earned based on FY2026; vests on or about 2/28/2027 if earned |
Employment Terms
| Term | Details |
|---|---|
| Employment agreement | Effective September 25, 2023; initial 1‑year term, auto‑renews for successive 1‑year periods unless notice of non‑renewal given 90 days prior |
| Base salary at hire (agreement) | $560,000 |
| Target/Max bonus (agreement) | 85% / 170% of base salary |
| Severance (no CIC) | Upon termination without cause/for good reason/non‑renewal by Company: cash equal to 1x (salary + target bonus) paid over 12 months; pro‑rated AIP for year of termination; Company share of COBRA premiums up to 12 months; subject to release and restrictive covenants |
| Severance (CIC double‑trigger) | On termination without cause/for good reason within 12 months post‑CIC: cash above; unvested equity accelerates (options/RSUs); PSUs deemed at least target based on performance through change in control (Board may deem max); earned PSUs vest, and accelerate if terminated after CIC |
| Restrictive covenants | Non‑compete during employment; non‑solicitation of employees/customers during employment and 1 year post‑termination; perpetual confidentiality and non‑disparagement |
| Clawback | Applies to incentive comp and equity for restatements (SEC/Nasdaq compliant) |
Estimated Payments if Terminated on 12/31/2024
| Scenario | Cash severance | Target bonus | Equity acceleration | COBRA | Total |
|---|---|---|---|---|---|
| Without cause/for good reason/non‑renewal (no CIC) | $1,036,000 | $476,000 | — | $23,440 | $1,535,440 |
| CIC + qualifying termination | $1,036,000 | $476,000 | $6,676,898 | $23,440 | $8,212,337 |
Investment Implications
- Pay-for-performance alignment and governance: High at‑risk mix (AIP + PSUs/RSUs), three‑year PSU design tied to revenue and adjusted EBITDA, anti‑pledging policy, and a restatement‑based clawback mitigate agency risk; 2024 say‑on‑pay support of ~86.7% indicates improved shareholder alignment .
- Retention and execution risks: Significant unvested equity (≈594K units) with multi‑year vesting and double‑trigger CIC acceleration supports retention but concentrates value in future performance outcomes; 2024 AIP also includes a 25% holdback tied to CMS Star Ratings in 4Q25, adding a quality performance lever .
- Potential selling pressure windows: Notable scheduled vesting dates include 10/4 annually (hire RSUs), 3/13 annually (2024 RSUs), 12/31/2025 (remaining 2023 PSUs), and on/around 2/28/2027 (2024 PSUs if earned); policy constraints (blackouts, pre‑clearance, anti‑pledging) still apply .
- Ownership alignment: Direct ownership is modest (62,000 shares, <1%), but Dr. Kim is subject to and in compliance with 2x salary ownership guidelines and holds substantial unvested equity, aligning interests with multi‑year enterprise value creation .
- Business performance context: Management delivered strong 2024 growth (revenue +48.3% YoY; first positive adjusted EBITDA; membership +58.6% YoY), supporting above‑target AIP outcomes and 116.8% 2023 PSU achievement; continued emphasis on revenue and adjusted EBITDA in PSU design keeps incentives tied to key value drivers .