Lynette B. Walbom
About Lynette B. Walbom
Pennant Group’s Chief Financial Officer since May 22, 2023; age 47; B.S. in accounting from Northern Arizona University (W.A. Franke College of Business); certified public accountant. Prior roles include VP Financial Reporting & Tax at Raising Cane’s (2016–2023), CFO of a multi-industry family office (2003–2016), and auditor at Deloitte; Pennant cites adjusted net income, adjusted EBT, segment adjusted EBITDAR, adjusted EBITDA, clinical quality and leadership development as key performance linkages for executive pay .
Company performance context during Walbom’s tenure
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Net Income ($USD Millions) | $7 | $14 | $24 |
| Adjusted Net Income ($USD Millions) | $17 | $22 | $30 |
| Company TSR (value of $100 invested on 1/1/2020 at year-end) | $33 | $42 | $80 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Raising Cane’s Restaurants, LLC | Vice President, Financial Reporting & Tax | 2016–2023 | Broad responsibility for financial reporting, acquisitions, tax, systems, equity; enterprise more than doubled in size during tenure |
| Family Office (multi-industry) | Chief Financial Officer | 2003–2016 | Led finance across investments in financial services, software, real estate development, franchising |
| Deloitte | Auditor (public company) | — | Began >25-year accounting career as a public company auditor |
External Roles
No public-company board or external directorships disclosed in proxy/8-K materials .
Fixed Compensation
| Component | 2023 ($) | 2024 ($) |
|---|---|---|
| Base Salary | 206,250 | 311,490 |
| Bonus (discretionary outside executive program) | — | — |
| Non-Equity Incentive Plan Compensation (annual cash) | 350,000 | 900,000 |
| Stock Awards (grant-date FV, ASC 718 recognition over 5 years unless fully vested via incentive plan) | — | 59,997 |
| Option Awards (grant-date FV, ASC 718 recognition over 5 years) | 183,542 | 324,348 |
| All Other Compensation | 75,400 | 3,032 |
| Total | 815,192 | 1,598,867 |
All Other Compensation – 2024 detail:
| Item | 2024 Amount ($) |
|---|---|
| Tax Preparation | 1,965 |
| Other Benefits (cell phone allowances, insurance, misc.) | 1,067 |
| Car Allowance | — |
Performance Compensation
Annual incentive program and payout (2024)
- The Compensation Committee set a bonus pool formula based on non-GAAP Adjusted Annual EBT (AEBT), with upward/downward adjustments for clinical performance, leadership development, and growth; pool exceeded $3.5M threshold, triggering split between cash and fully vested restricted stock .
- Walbom’s 2024 payout: $900,000 cash and $59,997 in restricted stock; restricted stock grants tied to the incentive program were fully vested when paid .
| Metric | Weighting | Target | Actual | Payout ($) | Vesting |
|---|---|---|---|---|---|
| Adjusted Annual EBT (AEBT) | Not disclosed | Tiered thresholds per formula | Achieved level generating $4.0M pool | Included in $900,000 cash for Walbom | Cash; N/A |
| Clinical Quality | Not disclosed | Committee-adjusted component | Considered in pool adjustment | Included within total payout | Cash; N/A |
| Leadership Development | Not disclosed | Committee-adjusted component | Considered in pool adjustment | Included within total payout | Cash; N/A |
| Restricted Stock (incentive plan) | N/A | N/A | N/A | 59,997 | Fully vested at grant (incentive plan awards) |
AEBT bonus pool formula (selected tiers)
| AEBT Range | Bonus Pool Computation |
|---|---|
| >$20.6M | $0.4M + 15.0% of amount over $20.6M |
| $18.6M–$20.6M | $0.25M + 12.5% of amount between $18.6M and $20.6M |
| $17.1M–$18.6M | $0.1M + 10.0% of amount between $17.1M and $18.6M |
| <$15.6M | $0 |
Long-term incentive awards (grants/vesting)
| Grant Date | Award Type | Units/Options (#) | Exercise Price ($/sh) | Vesting | Expiration | Grant-date FV ($) |
|---|---|---|---|---|---|---|
| 3/4/2024 | Stock Options | 35,000 | 18.79 | 5-year, 20% annually (standard) | 3/4/2034 | 324,348 |
| 3/3/2025 | Restricted Stock (incentive plan) | 2,663 | N/A | Fully vested at grant (incentive plan awards) | N/A | 59,997 |
Option exercises and stock vested (2024): No option exercises and no stock vested for Walbom .
Equity Ownership & Alignment
| Holder | Common Shares | Options Exercisable ≤60 days | Total Beneficial Ownership | % of Shares Outstanding (34,431,889) | Notes |
|---|---|---|---|---|---|
| Lynette B. Walbom | 2,663 | 13,400 | 16,063 | <1% | Hedging prohibited absent prior approval; no pledging disclosure found |
Outstanding equity awards at FY-end 2024 (Walbom)
| Grant Date | Exercisable (#) | Unexercisable (#) | Exercise Price ($/sh) | Expiration |
|---|---|---|---|---|
| 3/4/2024 | — | 35,000 | 18.79 | 3/4/2034 |
| 8/22/2023 | 1,400 | 5,600 | 12.52 | 8/22/2033 |
| 5/25/2023 | 5,000 | 20,000 | 11.60 | 5/25/2033 |
Equity plan overhang and burn-rate context
- Shares issuable upon exercise of outstanding options: 3,330,355 total; weighted-average option exercise price $20.80; remaining shares available under 2019 plan at 12/31/2024 were 252,258; 18,462 at 3/18/2025 .
- Proposed increase for 2025 Plan: +3,275,000 shares; estimated overhang ~9.6% and burn rate ~3.0% average (2022–2024) .
Employment Terms
| Term | Detail |
|---|---|
| Appointment date | Appointed CFO effective May 22, 2023 |
| Employment agreements | NEOs do not have employment agreements |
| Severance provisions | No arrangements for severance/change-in-control payments |
| Change-in-control treatment (equity) | If awards are not assumed/continued, time-based awards fully vest; performance-based awards earned at target pro-rated for elapsed performance period; if assumed and plan terminated early or participant terminated within 1 year post-CIC, time-based vesting and pro-rated target payout applies |
| Clawback provisions | Committee can/must claw back certain performance-based compensation in event of restatement or subsequent events diminishing performance metrics (including clinical) |
| Hedging and pledging | Hedging prohibited without advance approval of General Counsel and Board; no pledging policy disclosure found |
| Equity vesting norms | Options/restricted stock generally vest over 5 years (20% per anniversary); options have 10-year term; incentive-plan restricted stock grants paid from bonus pool fully vested |
| Ownership guidelines | Director stock ownership maintenance (≥33% of cumulative grants) disclosed; no executive officer ownership guideline disclosed in proxy |
Investment Implications
- Pay-for-performance alignment: Walbom’s 2024 compensation was predominantly at-risk, with $900,000 cash tied to AEBT and qualitative metrics plus a fully vested restricted stock component, while options vest over five years—aligning incentives with sustained operating and stock performance .
- Retention/vesting cadence: Significant unvested option overhang across 2023–2024 grants (35,000 from 2024, 25,600 from 2023) vesting 20% annually through 2034/2033 supports retention; absence of employment/severance agreements reduces guaranteed protections but equity vesting and CIC equity provisions mitigate turnover risk .
- Selling pressure: No 2024 vesting or exercises for Walbom and hedging prohibitions suggest limited near-term selling pressure; the incentive-plan restricted stock tied to the 2024 bonus was fully vested upon grant in March 2025, which could be a modest liquidity event but is small relative to float .
- Ownership alignment: Beneficial ownership is <1% (16,063 shares/options within 60 days), indicating modest personal economic exposure; absence of pledging disclosure is positive, while no executive ownership guideline is disclosed (directors have maintenance requirements) .
- Execution track record context: Corporate adjusted net income rose from $22M to $30M and TSR (PvP table) improved materially from $42 to $80 (value of $100 invested since 1/1/2020) in 2023–2024, underpinning the Committee’s pay-versus-performance philosophy and bonus pool determination .