Danielle Burkhalter
Surgery PartnersAbout Danielle Burkhalter
Danielle Burkhalter is Executive Vice President and Chief Human Resources Officer at Surgery Partners (SGRY). She has served as CHRO since February 2023 and became an EVP in March 2024; she joined Surgery Partners in 2018 after HR roles at UnityPoint Health. She is 40 years old and holds a bachelor’s degree from Simpson College and a master’s from The University of Alabama . Company performance during her tenure: FY2023 revenue grew 8.0% to $2.74B with Adjusted EBITDA up 15.2% to $438.1M; FY2024 revenue grew 13.5% to $3.11B with Adjusted EBITDA up 16.0% to $508.2M, though net loss widened in 2024 due to strategic investments and other items .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Surgery Partners | Executive Vice President, Chief Human Resources Officer | Mar 2024–present (CHRO since Feb 2023) | Leads human capital strategy, leadership development, and talent alignment across a multi-site outpatient surgical network . |
| Surgery Partners | Vice President, Talent | 2018–Feb 2023 | Led enterprise talent initiatives, supporting growth and physician/employee engagement amid footprint expansion . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| UnityPoint Health (Iowa/Illinois/Wisconsin) | Various Human Resources roles | Pre-2018 | Drove HR operations and integration at a large, integrated health system, informing SGRY’s human capital strategies . |
Performance Compensation
Company incentive design emphasizes pay-for-performance tied primarily to Adjusted EBITDA, Net Revenue, and Free Cash Flow for executives, with multi-year PSU cliff vesting and time-based RSU vesting schedules; Danielle’s specific bonus and equity targets are not disclosed as she was not a named executive officer (NEO) in 2023–2024 .
2024 cash incentive plan (company-level metrics and targets):
- Weighting: Adjusted EBITDA 70%, Net Revenue 15%, Free Cash Flow 15%
- Committee outcome: Aggregate incentive payments below target; portion settled in time-based restricted stock with 1-year vest for NEOs; Danielle’s payout not disclosed
- Vesting practices (LTIs): Time-based restricted stock vests one-third annually over 3 years; PSUs cliff vest at 3 years based on Adjusted EBITDA with TSR modifier (±10% for 2024 grants; ±20% for 2025 grants) .
2024 Company Targets vs Actuals (for incentive design)
| Metric | Threshold | Target | Maximum | Actual | Notes |
|---|---|---|---|---|---|
| Adjusted EBITDA ($USD Millions) | $484.5 | $510.0 | $530.4 | $508.2 | Slightly below target; committee reduced aggregate payouts . |
| Net Revenue ($USD Millions) | $2,909.9 | $3,063.0 | $3,185.5 | $3,110 | Above target revenue; aggregate payout still reduced . |
| Free Cash Flow ($USD Millions) | $142.5 | $150.0 | $156.0 | < Threshold | No payout for FCF portion where threshold not met . |
Equity Ownership & Alignment
- Section 16 filings: Danielle filed an initial Form 3 (late) on March 6, 2023, upon appointment as CHRO (document dated March 1, 2023) . Subsequent Form 4 filings (Feb 4, 2025; Mar 10, 2025; Mar 5 & Mar 11, 2024) reflect changes in beneficial ownership, consistent with equity grant practices; share counts and transaction codes are not enumerated in the proxy and must be read directly from the Form 4s .
- Hedging/Pledging: Employees, officers, and directors are prohibited from hedging company stock (e.g., collars, swaps, prepaid forwards); pledging is not explicitly discussed in the policy disclosures .
- Ownership guidelines: Specific quantitative ownership multiples apply to CEO (5x salary), other NEOs (3x salary), and non-employee directors (5x retainer); the proxy outlines guidelines for NEOs/directors but does not specify a multiple for non-NEO senior officers such as the CHRO .
Employment Terms
- Agreements/severance: The company discloses detailed severance and change-in-control terms for NEOs (12 months base salary continuation plus target bonus; double-trigger equity acceleration in CIC windows), with non-compete (1 year) and non-solicit (2 years) covenants; Danielle’s specific employment agreement terms are not disclosed in the proxies .
- Clawback: Executive Compensation Recovery Policy (clawback) adopted and administered by the Compensation Committee .
Company Performance Context
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Revenue ($USD Billions) | $2.74 | $3.11 |
| Adjusted EBITDA ($USD Millions) | $438.1 | $508.2 |
| Net Loss attributable to common stockholders ($USD Millions) | $(11.9) | $(168.1) |
| Net Loss per Share ($USD) | $(0.09) | $(1.33) |
Risk Indicators & Red Flags
- Section 16(a) compliance note: Company disclosed a late Form 3 for Danielle (filed March 6, 2023), along with several late director Form 4s in 2023; management reported overall compliance otherwise for FY2024/FY2023 .
- Compensation risk oversight: Committee reviews incentive structures for excessive risk; blended mix of cash/equity, multi-year vesting, and clawback mitigate risk .
- Hedging ban strengthens alignment; no pledging disclosure reduces but does not eliminate collateralization risk .
Say‑on‑Pay & Governance Context
- Say-on-Pay support: ~94% approval in 2023 and ~95% in 2024, indicating broad investor support for the executive pay program design (NEO-focused) .
- Compensation Committee independence and use of FW Cook for benchmarking; peer set includes mid‑cap health services firms (Option Care, Encompass, Select Medical, etc.) .
Investment Implications
- Alignment: Danielle’s role is critical to execution (talent acquisition/retention) amid volume growth and facility expansion. Equity-based compensation and the company’s hedging ban support alignment; however, non-NEO status limits transparency into her specific targets and payouts, constraining precise pay-for-performance assessment .
- Retention risk: Presence of recent Form 4s suggests ongoing equity grants and vesting, typical of senior officers; absence of disclosed severance specifics for the CHRO reduces visibility into change‑in‑control economics relative to NEOs .
- Trading signals: No evidence of hedging is permitted; pledging not addressed; limited details on net share acquisitions/disposals in public summaries—investors should monitor Form 4 filings for tax withholding sales versus discretionary selling around vesting dates .