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John G. Nackel

Director at Pennant Group
Board

About John G. Nackel

John G. Nackel, Ph.D., age 73, has served as an independent director of The Pennant Group, Inc. since 2019. He is Chairman/CEO of Three-Sixty Advisory Group (founded 2007) and Founder/General Partner of Wavemaker Three-Sixty Health (founded 2018). He previously spent 25 years at Ernst & Young as Global Managing Director of Healthcare and served as CEO of Ingenix Consulting (now Optum). He holds a BS from Tufts, master’s degrees in public health and industrial engineering, and a Ph.D. in industrial engineering (health systems design) from the University of Missouri; he is a fellow of ACHE and HIMSS, and a senior member of the Institute of Industrial Engineers . The Board affirmatively determined him to be independent under Nasdaq rules .

Past Roles

OrganizationRoleTenureCommittees/Impact
The Ensign Group, Inc.Director2008–2019Post-acute operator; governance and strategy oversight
Mercury General Corporation (NYSE: MCY)Director2016–2018Insurance; strategic oversight
Ernst & YoungGlobal Managing Director – Healthcare~25 yearsLed healthcare advisory globally
Ingenix Consulting (Optum)Chief Executive OfficerLed payer-focused consultancy

External Roles

OrganizationRoleSinceFocus / Impact
Three-Sixty Advisory Group, LLCChairman and CEO2007Advises health systems, payers, medtech, providers
Wavemaker Three-Sixty Health, LPFounder and General Partner2018Early-stage health care investments in value-based care

Board Governance

  • Committee leadership: Compensation Committee Chair; Audit Committee member .
  • Independence: Board determined Nackel meets Nasdaq independence criteria; all Audit/Comp/NCG members are independent .
  • Attendance: Board met 5 times in 2024; each director attended ≥75% of Board and committee meetings; all directors attended the prior annual meeting .
  • Executive sessions: Board holds executive sessions without management; Compensation Committee held five executive sessions in 2024 .
  • Board leadership: In 2025, CEO Brent J. Guerisoli is Chairman, with Scott E. Lamb as Lead Independent Director .
Committee (2024)MembersChairMeetings
CompensationBarry M. Smith; John G. Nackel; JoAnne Stringfield; Stephen M.R. CoveyJohn G. Nackel6
AuditScott E. Lamb; Gregory K. Morris; John G. NackelScott E. Lamb5
Nominating & Corporate GovernanceBarry M. Smith; Scott E. Lamb; Stephen M.R. CoveyBarry M. Smith6
Quality Assurance & ComplianceChristopher R. Christensen; Brent J. Guerisoli; JoAnne Stringfield; Gregory K. MorrisJoAnne Stringfield4

Fixed Compensation

  • Director cash retainers (2024): base $30,000; committee chair/member retainers: Audit ($30,000/$12,000), Compensation ($22,500/$10,000), NCG ($15,000/$7,500), QAC ($30,000/$12,000) .
  • Nackel’s 2024 cash fees reflect base + Audit member + Compensation chair: $64,500 .
  • Equity: Automatic Stock Grant Program—3,000 restricted shares granted quarterly (12,000 total in 2024; vest over 3 years). Directors must maintain ownership of at least 33% of cumulative grants; unvested grants fully vest upon board departure unless removed for cause .
Director Compensation (2024)Fees Earned ($)Stock Awards ($)Total ($)
John G. Nackel, Ph.D.64,500 290,160 354,660

Performance Compensation

As Compensation Committee Chair, Nackel led the executive pay program, which ties annual bonuses to Adjusted EBT and governance/clinical metrics, with a clawback policy compliant with SEC/Nasdaq rules .

2024 Executive Bonus Pool Formula (AEBT)Bonus Pool Calculation
Up to $15.6m$0
$15.6m–$16.1m5.0% of amount in band
$16.1m–$17.1m$0.025m + 7.5% of amount in band
$17.1m–$18.6m$0.1m + 10.0% of amount in band
$18.6m–$20.6m$0.25m + 12.5% of amount in band
>$20.6m$0.4m + 15.0% of excess
AdjustmentsPool adjusted based on YoY AEBT performance bands
2024 Executive Incentive AllocationsCash ($)Restricted Stock ($)
CEO (Guerisoli)1,600,000 106,657
President/COO (Gochnour)1,250,000 83,338
CFO (Walbom)900,000 59,997
EVP GC (Cheney)500,850
CCO (Steik)472,200 — (segment plan separate)

Plan safeguards:

  • Clawback: Board can (and certain cases must) recover incentive-based compensation in restatements or when subsequent events diminish performance metrics .
  • Change-in-control: Awards not continued/assumed fully vest (time-based) and performance awards earned at target pro-rata; assumed awards continue, with vesting at target pro-rata if plan terminates early post-CIC or participant terminated within one year .
  • No option/SAR repricing; no discounted options; dividend equivalents not paid on unvested awards .

Other Directorships & Interlocks

CompanyCurrent/PastNotes
The Ensign Group, Inc. (ENSG)Past Director (2008–2019)Network ties to current PNTG directors (Christensen, Smith) with Ensign affiliations
Mercury General (MCY)Past Director (2016–2018)Insurance sector oversight

No related-party transactions involving Nackel were disclosed; 2025 proxy notes only family-related employment for CEO’s sister and GC’s brother-in-law (compensation below related-party threshold) and that transactions since Jan 1, 2024 over $120k with related persons were limited to disclosed compensation arrangements and Ensign agreements per related-person policy . The Audit Committee oversees related-person transactions under a written policy adopted in 2019 .

Expertise & Qualifications

  • Healthcare operations and payer advisory; senior leadership in consulting and managed care (EY; Ingenix/Optum) .
  • Advanced degrees in public health and industrial engineering; Ph.D. in health systems design .
  • Professional recognition: Fellow (ACHE, HIMSS); senior member (Institute of Industrial Engineers) .

Equity Ownership

MetricFY 2024FY 2025
Total Beneficial Ownership (shares)162,965 173,865
Beneficial Ownership % of Outstanding<1% (*) <1% (*)
Direct + Trust Shares97,352 (94,652 direct + 2,700 trust) 165,865 (163,165 direct + 2,700 trust)
Options included (exercisable ≤60 days)65,613 8,000

Notes:

  • Percentage is shown as “less than 1%” in proxy tables; outstanding shares were 30,036,124 (2024) and 34,431,889 (2025) for calculations (*) .
  • As of Dec 31, 2024, Nackel had 8,000 director option awards outstanding and no stock awards outstanding per director comp footnote .
  • Hedging policy: Company prohibits hedging transactions unless pre-approved; no pledging disclosures noted for Nackel .

Say-on-Pay & Shareholder Feedback

Annual MeetingForAgainstAbstainBroker Non-Votes
2024 (May 23, 2024)13,703,355 7,599,880 12,365 2,769,267
2025 (May 16, 2025)18,745,276 6,947,663 22,181 2,370,446

Management reported conducting more than 100 investor meetings in 2024 on pay practices and related topics .

Insider Filings / Trades

  • Delinquent Section 16(a) filings: 2025 proxy lists one late filing for CEO; no delinquent reports for Nackel in 2024 .
  • Beneficial ownership details and director grants disclosed above; no 10b5-1 plan disclosures for Nackel noted in proxy .

Governance Assessment

  • Strengths: Independent director; chairs Compensation Committee with robust formulaic and governance-linked bonus design, clawback, and equity plan safeguards (no repricing, no dividends on unvested awards) . Attendance and executive session practices signal engagement . Ownership aligns incentives (173,865 shares, plus options) and director stock ownership guideline (≥33% of cumulative grants) supports alignment .
  • Potential risks/monitoring items: Historical Ensign affiliation amid current Ensign ties on PNTG’s board (information flow/interlocks) warrants ongoing oversight for conflicts . Unvested director RSAs fully vest upon board departure (could dilute retention incentives) . Venture investing role (Wavemaker 360) in healthcare may create future related-party exposure; no such transactions were disclosed for 2024–2025, and Audit Committee policy governs approvals .
  • Signals: Two consecutive years of Say-on-Pay approvals with rising “For” votes in 2025, alongside expanded clawback and strong plan provisions, support investor confidence in compensation governance led by Nackel .