Sebastian Burzacchi
About Sebastian Burzacchi
Sebastian Burzacchi serves as Chief Operating Officer – Management Services Organization at Alignment Healthcare (ALHC). He joined in December 2023, is 44 years old as of April 25, 2025, and holds an MBA from MIT Sloan and a BS in Industrial & Systems Engineering from Virginia Tech . Company incentive design emphasizes Adjusted EBITDA, Adjusted Gross Profit, Revenue, Health Plan Membership, and CMS Star Ratings; in 2024, ALHC’s year-end value of $100 invested rose to 64.99 (from 49.74 in 2023), and Adjusted EBITDA turned positive at $1.34 million .
Past Roles
| Organization | Role | Years | Strategic Impact / Notes |
|---|---|---|---|
| Veho Tech (e-commerce logistics) | Executive Vice President, Operations | Mar–Nov 2023 | Senior operations leadership at an e-commerce logistics company . |
| Oscar Health | Advisor | Oct 2022–Oct 2023 | Advisory role at health insurer . |
| Oscar Health | Head of Claims Operations; Head of Concierge; SVP Operations | Oct 2016–Oct 2022 | Led core operations functions (claims, member concierge, operations) . |
External Roles
| Organization | Role | Years | Strategic Impact / Notes |
|---|---|---|---|
| Oscar Health | Advisor | Oct 2022–Oct 2023 | External advisory role prior to joining ALHC . |
Fixed Compensation
- Disclosure status: Burzacchi is listed as an executive officer but not among Named Executive Officers (NEOs) for the periods with compensation tables; therefore, individual base salary/bonus detail for him is not presented in the SCT/NEO tables. For 2023, the proxy identifies Non-PEO NEOs as Thomas Freeman, Dawn Maroney, Hakan Kardes, and Hyong (Ken) Kim, M.D. (Burzacchi not included) .
Context – ALHC NEO employment agreement structure (for program design benchmarking):
| Role | Initial Base Salary | Target Bonus (% base) | Max Bonus (% base) | Term/Auto-Renew |
|---|---|---|---|---|
| CEO | $675,000 | 100% | 200% | 1-year initial term; auto-renews annually unless notice given . |
| CFO | $450,000 | 50% | 100% | Same as above . |
| President | $550,000 | 85% | 170% | Same as above . |
| CMO | $560,000 | 85% | 170% | Same as above . |
| CHRO | $480,000 | 85% | 170% | Same as above . |
Additional program governance applicable company-wide:
- Clawback policy consistent with SEC and Nasdaq requirements; anti-hedging and anti-pledging policies maintained .
Performance Compensation
Annual Incentive Plan (corporate scorecard) and company-selected performance measures:
- Most important performance measures for 2024: Adjusted EBITDA (company-selected), Adjusted Gross Profit, Revenue; plus Health Plan Membership and CMS Star Ratings as non-financial measures .
2023 Annual Incentive Plan: metric design and results
| Metric | Weight | Threshold | Target | Maximum | Actual | Funded Amount |
|---|---|---|---|---|---|---|
| Health Plan Membership (as of Jan 1, 2024) | 50% | 124,545 | 129,960 | 140,790 | 200% of Target | 134.4% of Target |
| Adjusted Gross Profit (non-GAAP) ($M) | 30% | 202 | 217 | 232 | 74% of Target | 134.4% of Target |
| Adjusted EBITDA (non-GAAP) ($M) | 20% | (37.8) | (22.8) | 0.0 | 61% of Target | 134.4% of Target |
Compensation governance practices:
- “What we do”: emphasize variable/long-term pay, independent consultant, clawback, ownership guidelines; “What we don’t do”: no repricing/exchanges of underwater options, no significant perquisites, no tax gross-ups (other than certain relocation) .
Equity Ownership & Alignment
Ownership snapshot and policies:
| Date/Source | Title | Beneficial Ownership Reported | Notes |
|---|---|---|---|
| 11/27/2023 (filed 12/07/2023) – Form 3 | Executive Officer (COO – Management Services Org) | 0 shares | Initial statement: “No securities are beneficially owned.” |
- Stock ownership guidelines: Other executive officers must hold stock equal to 2x base salary; compliance within five years after appointment/adoption (policy established July 2021; reiterated in 2025 with CEO at 6x and directors at 5x annual cash retainer) .
- Compliance status: As of Dec 31, 2024, all NEOs and non-employee directors were in compliance with ownership requirements (statement pertains to NEOs/directors; Burzacchi is not identified as an NEO for the periods shown) .
- Anti-pledging/anti-hedging: Prohibitions in effect under insider trading policy and governance framework .
Employment Terms
| Item | Detail |
|---|---|
| Current Role | Chief Operating Officer – Management Services Organization |
| Start Date at ALHC | December 2023 |
| Education | MBA, MIT Sloan; BS, Virginia Tech |
| Clawback/Insider Trading Policies | Clawback policy aligned with SEC/Nasdaq; anti-hedging and anti-pledging policies |
| Company NEO Agreement Framework (context) | 1-year term with annual auto-renew; target/maximum bonuses by role; severance provisions described for NEOs (not specific to Burzacchi) . |
Performance & Track Record (Company context during and around tenure)
| Metric | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Year-end value of $100 invested on 3/26/2021 in ALHC | 81.22 | 67.94 | 49.74 | 64.99 |
| Net Income ($ millions) | (195.3) | (149.6) | (148.07) | (128.07) |
| Adjusted EBITDA ($ millions) | (33.1) | (26.7) | (35.3) | 1.34 |
Pay-versus-performance (shareholder sentiment):
- Say-on-pay approval in 2024 was approximately 86.7% .
Investment Implications
- Alignment trajectory and selling pressure: As of his initial Form 3 (Dec 2023), Burzacchi reported no beneficial ownership; combined with executive ownership guidelines (2x salary within five years), this suggests a multi-year ownership build trajectory and reduces near-term pledging/synthetic hedging risk given the company’s anti-pledging/anti-hedging policy .
- Incentive focus and operating execution: Company incentive design centers on Adjusted EBITDA, Adjusted Gross Profit, Revenue, and membership/Stars; 2023 AIP funded at 134.4% on corporate metrics and 2024 Adjusted EBITDA turned positive, indicating improved operating leverage that, if sustained, supports stronger performance-based equity realizations for operators driving MSO efficiency .
- Governance and pay risk: Clawback policy aligned with SEC/Nasdaq and strong anti-pledging/anti-hedging controls lower governance red flags; 2024 say-on-pay support of ~86.7% indicates improved shareholder alignment of the compensation program .
- Disclosure gap and monitoring: Because he is not identified as an NEO in the proxy’s NEO listings, granular salary/bonus/equity grant disclosures for him are limited; monitor future proxies and any Form 4 activity to track grant sizes, vesting schedules, and potential selling pressure as awards vest .