10-K/A: Cross Country Healthcare Files Amendment to 2024 Annual Report, Providing Detailed Executive Compensation and Governance Information

• Cross Country Healthcare, Inc. filed Amendment No. 1 on Form 10-K/A to its Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
• The amendment includes information required by Items 10 through 14 of Part III of Form 10-K, which were initially omitted from the original report.
• The company's definitive proxy statement containing this information will not be filed before the SEC's deadline, necessitating this amendment.
• The amendment updates the Form 10-K cover page to reflect the number of shares of Common Stock outstanding as of March 31, 2025, which is 32,785,598 shares.
• The document details the composition of the Board of Directors, which currently consists of seven directors following the passing of Mark Perlberg on March 11, 2025.
• Executive compensation for the named executive officers (NEOs) is discussed, including base salary, annual cash incentives, and long-term equity awards.
• The company's compensation philosophy is to align pay with performance and key strategic objectives, keeping overall compensation competitive.
• The Compensation Committee considers the results of the prior year's say-on-pay vote as part of its compensation-setting process.
• The amendment also includes information on security ownership of certain beneficial owners and management.
• Related party transactions are disclosed, including those involving Kevin C. Clark's son-in-law and a company related to Mr. Clark.
• Director independence is addressed, with the Board determining that several directors are independent under Nasdaq rules.
• Principal accounting fees and services provided by Deloitte & Touche LLP are detailed for the fiscal years ended December 31, 2024 and December 31, 2023.
• The amendment includes certifications from John A. Martins and William J. Burns, as required by the Sarbanes-Oxley Act of 2002.

Score: 6

Explanation: The document is factual and informative, but contains some negative aspects such as below-target performance and compensation levels. The sentiment is neutral to slightly positive.

• The company maintains a compensation philosophy that aligns pay with performance and strategic objectives.
• The company has stock ownership guidelines for executives and directors, promoting alignment with shareholder interests.
• The company has a Compensation Recoupment Policy in place to recover erroneously awarded incentive-based compensation.
• The company discloses related party transactions and ensures they are reviewed and approved by the Audit Committee.
• The company has determined that a majority of its directors are independent, ensuring strong corporate governance.

• The company's Annual Cash Incentive Program payouts were well below target for Fiscal 2024 due to not achieving the minimum performance threshold for Company Annual Adjusted EBITDA.
• The company's performance shares were below target for the three-year measurement period ending December 31, 2024.
• The company's target total direct compensation opportunities were below 50th percentile market values for all current NEOs, and below a competitive range for three of the five NEOs.

• The company faces the risk of not achieving performance targets, which can impact executive compensation and potentially affect morale and retention.
• The company faces the risk of potential conflicts of interest in related party transactions, requiring careful review and approval by the Audit Committee.
• The company faces the risk of losing key talent if compensation is not competitive with industry peers.
• The company faces the risk of potential clawbacks of incentive-based compensation in the event of an accounting restatement or misconduct.

The completion of the Aya Merger is currently expected to occur in the second half of 2025, subject to the satisfaction of customary closing conditions, including regulatory approvals.

The document provides insights into executive compensation practices within the healthcare services and staffing industry, offering a glimpse into how companies incentivize and reward their top executives.

• The Compensation Committee benchmarks NEO compensation against a peer group of companies from both the healthcare services and staffing and general staffing industry sectors, including Addus HomeCare Corporation, Kelly Services, Inc., and AMN Healthcare Services, Inc.
• The company generally seeks to position NEOs base salaries and target total direct compensation opportunities at or near the 50th percentile of market values for comparable positions at industry peers.
• Pearl Meyer's 2024 analysis found that target total direct compensation opportunities were below 50th percentile market values for all current NEOs, and below a competitive range (defined as 85% to 115%) of the 50th percentile for three of the five NEOs.

• Shareholders are impacted by executive compensation decisions and the company's performance.
• Employees are impacted by compensation policies and the overall financial health of the company.
• Customers (healthcare facilities) are impacted by the quality of services provided by Cross Country Healthcare.
• Suppliers and creditors are impacted by the company's financial stability and ability to meet its obligations.

• The company will continue to monitor its compensation policies and practices to ensure risk management objectives are being met.
• The company will proceed with the Aya Merger, expected to close in the second half of 2025, subject to customary closing conditions.
• The Compensation Committee will continue to evaluate and adjust executive compensation as needed to align with performance and market conditions.

• Mark Fortunato, son-in-law of Kevin C. Clark, is employed by Cross Country Healthcare, Inc.
• The Company transacts business with Recruitics, a company related to Mr. Clark.
• The Company provided services to ChristianaCare, where director Janice E. Nevin serves as President and Chief Executive Officer.
• The Company provided services to Beth Israel, where director Gale Fitzgerald serves on the Board of Trustees of Beth Israel Deaconess Hospital.

• 2002-03-18: Ms. Ball joined the Company as its Corporate Counsel pursuant to the terms and conditions of an offer letter.
• 2017-03-24: Mr. Krug joined the Company as Vice President, Advanced Practice pursuant to the terms and conditions of an offer letter.
• 2019-02-01: The Company amended its employment agreement with Mr. Burns to appoint him as its Executive Vice President and Chief Financial Officer.
• 2021-02-22: The Company most recently amended the Ball Offer Letter to increase her base salary to $430,000 and change her title to include Chief Administrative Officer.
• 2021-04-05: Mr. Noe joined the Company as Chief Information Officer pursuant to the terms and conditions of an offer letter.
• 2022-01-14: The Company appointed Mr. Martins as President and Chief Executive Officer (CEO) and as a member of the Board effective March 31, 2022.
• 2022-04-01: The Company most recently amended the Krug Offer Letter on April 1, 2022, when Mr. Krug was promoted to Group President.
• 2024-02-14: The Company entered into a separation agreement with Mr. White.
• 2024-06-01: Messrs. Clark, Cash, Allen, Bhamidipati, and Perlberg and Mses. Fitzgerald and Nevin each received a grant of restricted shares of Common Stock.
• 2025-03-05: Cross Country Healthcare, Inc. (the Company) is filing this Amendment No. 1 on Form 10-K/A (this Amendment) to amend its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (Fiscal 2024) filed with the Securities and Exchange Commission (the SEC) on March 5, 2025 (the Original Report).
• 2025-03-11: Following the passing of Mark Perlberg on March 11, 2025, the Board reduced the size of the Board from eight directors to seven directors.
• 2025-03-31: As of March 31, 2025 , 32,785,598 s hares of Common Stock, $0.0001 par value per share, were outstanding.
• 2025-03-31: As of March 31, 2025, all currently-employed NEOs are either in compliance with our stock ownership guideline, or on track to gain compliance within such NEOs respective three-year grace period.
• 2025-03-31: As of March 31, 2025, all current directors are in compliance, or on track to gain compliance within his or her respective five-year grace period, with our stock ownership guidelines.
• 2025-04-16: Date of signatures for the filing.