Lori Babcock
About Lori Babcock
Lori Babcock, 61, serves as Chief of Staff at Health In Tech (HIT) since September 2022, overseeing staffing, account executive functions, and human resources . She attended Washburn University until 1983 (no degree) and previously served as Controller at Stone Mountain Risk from August 2011 to August 2022, bringing operational finance and insurance-sector experience . Company performance during her tenure shows revenue growth and profitability variability; see multi-year financials below (S&P Global data where noted). TSR is not disclosed in company filings for her tenure period.
Company Financials During Babcock’s Tenure (Annual)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $5,769,781* | $19,151,502* | $19,490,906 |
| Net Income - (IS) ($USD) | $79,742* | $2,476,660* | $670,477 |
Values retrieved from S&P Global for cells marked with *.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stone Mountain Risk | Controller | Aug 2011–Aug 2022 | Led controllership in self-insurance/stop-loss ecosystem; operational finance discipline supporting underwriting and risk operations |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No public external directorships or roles disclosed for Babcock |
Fixed Compensation
- Base salary: $230,000 under employment agreement dated July 27, 2023; employment generally “at will” with standard benefits (health, life, disability), expense reimbursement and equity participation eligibility aligned to company plans .
- Other cash compensation elements (target bonus %, actual bonus) for Babcock are not itemized in the proxy; she is not a named executive officer in the summary compensation table .
Performance Compensation
- Specific performance metrics, weightings, targets, and payouts for Babcock’s incentives are not disclosed.
- Company’s 2024 Equity Incentive Plan supports a range of award types (RSUs, PSUs, stock options, SARs), with performance share/unit awards able to pay out upon achievement of specified goals; awards and vesting terms are set by the Compensation Committee .
- Change-in-control mechanics permit the Compensation Committee to accelerate vesting, cash out, assume/substitute awards, or terminate/adjust awards as necessary .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 210,481 Class A shares |
| Ownership as % of Class A | <1% |
| Class B ownership | None disclosed |
| Restricted stock (included in beneficial ownership) | 11,587 shares |
| Options (exercisable or exercisable within 60 days) | 143,303 shares underlying stock options |
| Options vesting after 60 days (excluded) | 32,220 shares underlying stock options |
| Hedging/derivatives | Prohibited for directors, officers, employees, and >10% holders (no short sales or derivative transactions) |
| Margin/pledging | Policy prohibits “engaging in margin, or making any offer to margin” Company securities as collateral; effectively restricts pledging via margin arrangements |
| 10b5-1 plans | Permitted; trades executed by brokers under preset parameters; may also trade outside plans when not in possession of MNPI |
| Ownership guidelines | Not disclosed |
Employment Terms
- Agreement date and base pay: July 27, 2023; $230,000 base salary .
- Term/renewal: Employment is generally at will; detailed term length/auto-renewal not disclosed .
- Non-compete/non-solicit: Agreements include invention assignment, confidentiality, and restrictive covenants; CEO agreement specifies a two-year non-compete/non-solicit post-employment, and Babcock’s agreement is “substantially the same” in material terms (duration for Babcock not separately enumerated) .
- Indemnification: Executive indemnification agreements entered into December 2024 (expense advancement/reimbursement to fullest extent of Nevada law) .
- Clawback: Company-wide clawback policy for current/former executive officers to recoup excess incentive compensation after accounting restatements (reasonable-estimate methodology permitted) .
Compensation Structure Observations
- Mix: Cash base with equity eligibility through company plans; specific cash-to-equity mix for Babcock not itemized .
- Risk alignment: Low direct voting power (<1%), but meaningful equity exposure via restricted stock and options supports some pay-for-performance alignment; hedging and margin/pledging prohibitions strengthen alignment .
- Change-in-control: Plan-level acceleration and cash-out flexibility could reduce retention risk through event-driven value crystallization but may increase payout certainty regardless of long-term performance .
- Peer group/benchmarks: Not disclosed for Babcock specifically; compensation committee independence and use of external advisors permitted under charter .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited by policy (mitigates misalignment risk) .
- Clawbacks: Present for executive incentive pay (mitigates restatement risk) .
- Related party transactions: None involving Babcock disclosed; related party policies implemented and audit committee oversight in place .
- Legal proceedings: No material legal proceedings for executive officers in past ten years disclosed .
Investment Implications
- Alignment: Babcock’s equity holdings (restricted stock and options) and company policies (hedging/margin prohibitions, clawbacks) support alignment, though her sub-1% ownership limits direct voting influence .
- Retention/pressure: Presence of options that vest outside the 60-day window suggests ongoing vesting; combined with change-in-control acceleration policy, retention risk appears moderate with event-driven value protection . Lack of disclosed severance multiples/bonus targets reduces visibility into downside protection or pay-for-performance rigor .
- Dilution/structure: 2024 Plan amendments increased share reserve and introduced super-voting Class B stock for executive officers (10 votes/share, convertible to Class A), a governance consideration investors should monitor for concentration of voting power among executives (no specific Class B grants to Babcock disclosed) .
- Performance backdrop: Revenues grew materially from FY 2022 to FY 2024 with net income variability; the absence of disclosed executive-specific performance metrics/payouts limits direct attribution of value creation to Babcock’s compensation outcomes (see financials above) .