Kotte brings more than 20 years of experience scaling and transforming innovative healthcare models as CEO
Newly appointed CFO Jason Schulz to sharpen focus on operating efficiencies, cash flow, and shareholder value creation
Co-Founder and current CEO Clint Jones to transition to newly created role of Executive Chairman
Seasoned executive David Fisher appointed to the Company’s Board of Directors
CHICAGO, June 6, 2022 – GoHealth, Inc. (Nasdaq: GOCO) (“the Company”), a leading health insurance marketplace and Medicare-focused digital health company, announces today a series of leadership appointments intended to create strong value for shareholders and all stakeholders. The Company has named Vijay Kotte as Chief Executive Officer and Jason Schulz as Chief Financial Officer, both effective June 6, 2022. Upon assuming the role of Chief Executive Officer, Mr. Kotte will also join the Company’s Board of Directors.
At that time, Co-Founder and current Chief Executive Officer, Clint Jones, will take on a new role as Executive Chairman of the Board to continue his work expanding GoHealth’s strong carrier partnerships. Mr. Jones will remain in this role until January 1, 2023, when he will transition to Non-Executive Chairman of the Board. Also on June 6, 2022, Co-Founder Brandon Cruz will transition from his role of Co-Chairman and Chief Strategy Officer to serve as Non-Executive Chairman at GoHealth.
“Having built GoHealth from an innovative, customer-centric startup with a mission to improve access to healthcare in America into a publicly traded company with more than $1 billion of annual revenue, we have decided the time is right for a transition of day-to-day leadership,” said Mr. Jones. “We are now at a pivotal inflection point, and our focus for 2022 and beyond is squarely on achieving profitable growth. Both Vijay and Jason have proven track records of doing just that across several leading healthcare platforms, and I cannot wait to work with them in my new role as Executive Chairman to unlock new value creation opportunities for shareholders, consumers, employees, partners, and providers.”
Mr. Cruz said, “We started GoHealth with a simple idea – an essential, basic need like health insurance should be more accessible and easier for consumers to understand and compare. I’m confident that under Vijay and Jason’s leadership, that idea will remain the cornerstone of GoHealth’s strategy and success. On behalf of the entire Board, I would like to thank Clint for the lasting impact he has made as GoHealth’s CEO – overseeing tremendous growth, expansion into new markets, and the Company’s IPO.”
Positioning GoHealth to Achieve Profitable Growth
Since Clint and Brandon founded GoHealth in 2001, they have led the Company to become a top choice in the United States for insurance advice, with roughly 4,000 employees globally, five million Americans enrolled to date, and more than $1 billion in annual revenue. GoHealth’s proprietary data and technology platform has continuously evolved to engage with consumers across channels and simplify the process of selecting the right insurance plan. In 2020, GoHealth launched its Encompass platform, a first-of-its-kind technology-driven approach to purchasing Medicare Advantage plans.
“GoHealth has established itself as the premier platform in the Medicare Advantage e-broker space, and I’m excited to build on the momentum that this dedicated team has created,” said Mr. Kotte. “With a strong technology platform and experienced team of licensed agents, GoHealth has a significant opportunity to support Medicare beneficiaries and capitalize on tailwinds in the Medicare Advantage market as more than four million seniors age into the market this year. I’m excited to get started working with Clint, Brandon, Jason, and the entire team to drive sustainable long-term growth and profitability.”
“I’m eager to join a company focused on reimagining how individuals find the best insurance plan for their specific needs, while creating value for care delivery partners and clients,” added Mr. Schulz. “Over the past few months, Clint, Brandon, and the team have laid a strong foundation for improved cash flow generation, and I’m looking forward to building on those efforts to further sharpen our focus on achieving profitability.”
About Vijay Kotte
Mr. Kotte brings more than 20 years of experience, developing and transforming innovative healthcare models and Medicare-focused platforms at public and private ventures.
Since 2019, Mr. Kotte has served as Chief Solutions Officer and Executive Vice President, Strategy and Corporate Development at R1. In this role, he was responsible for R1’s physician-focused operations, including growth, product development, and strategic initiatives.
Prior to joining R1, Mr. Kotte was the Chief Value Officer for DaVita Medical Group with accountability for strategy, M&A, carrier/payor contracting, performance, and operations. Before that, he was the Chief Financial Officer for DaVita Medical Group with responsibility for the finance function and oversight of joint ventures. Prior to DaVita, Mr. Kotte served as President and Chief Operating Officer of Medicare operations for Meridian Health Plan. Additionally, he previously served as President of the Midwest region for WellCare Health Plans, where he was responsible for operations, Medicare and Medicaid sales, and long-term strategic planning.
Mr. Kotte holds a Bachelor’s degree in Business Administration with a focus on Finance and Organizational Management from Emory University and a MBA from Kellogg School of Management, Northwestern University.
About Jason Schulz
Jason brings over 16 years of experience in various finance executive positions within the healthcare sector, including payors, hospital systems, and risk bearing physician groups.
Most recently, Mr. Schulz served as President, Pacific Northwest Region at OptumCare. Before that, he was the Chief Financial Officer of DaVita Medical Group, prior to its divestiture to OptumCare in 2019. He has also held CFO roles at NextMed and Mercy Health Plan.
Mr. Schulz began his career at Great West Healthcare in Denver, Colorado and later moved to Cigna after helping to manage a successful sale of the company. Mr. Schulz holds a Bachelor’s degree in Business Administration from the University of Northern Colorado, has a MBA from Washington University of St. Louis, and is a Certified Management Accountant.
Further Strengthening GoHealth’s Board of Directors
As was announced in an 8-K filing on May 27, 2022, David Fisher, Chief Executive Officer of Enova International, Inc. (NYSE: ENVA), was appointed on May 25, 2022 to serve as a member of the Board of Directors. Mr. Fisher will serve on the Board’s Audit Committee and fills a vacancy created by Dr. Helene Gayle, who resigned from the Company’s Board of Directors to focus on her new role as President of Spelman College.
David Fisher is Chief Executive Officer of Enova International, Inc. (NYSE: ENVA), a leading technology and analytics company focused on online lending. Prior to joining Enova in January 2013, Mr. Fisher served as the CEO and member of the Board of Directors of optionsXpress Holdings, Inc., during which time he spearheaded the company’s sale to Charles Schwab. Before joining optionsXpress, he held CFO positions at Potbelly Sandwich Works and Prism Financial Corporation.
“David brings a wealth of public company leadership experience and financial expertise to our Board, and we are thrilled to welcome him,” said Mr. Jones. “We look forward to benefitting from his valuable perspectives and proven ability to scale technology-enabled companies as we enter this new phase of value creation.”
Mr. Fisher is also a member of the Board of Innerworkings, a global print management firm, and GrubHub, a leading online and mobile food-ordering company. He holds a Bachelor of Science degree in finance with high honors from the University of Illinois at Urbana-Champaign and a Juris Doctor, Magna Cum Laude, from the Northwestern University School of Law.
Equity Compensation
The Company granted equity-based awards pursuant to the Company’s 2021 Inducement Award Plan to Mr. Kotte and Mr. Schulz. The inducement grants were approved by a majority of the Company’s Independent Directors and were made as a material inducement to each employee’s acceptance of employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of their employment compensation.
The inducement grants consisted of a non-statutory option to purchase an aggregate of 3,833,333 shares of the Company’s common stock, and 10,583,334 restricted stock units (increasing up to 13,500,000 if the maximum level of all performance vesting conditions is achieved) (“RSUs”) for shares of the Company’s common stock.
The stock options each have an exercise price equal to the fair market value of a share of common stock on the date of grant. The stock options each have a ten-year term and vest in four equal annual installments over the first four anniversaries of the grant date. Certain of the RSUs vest immediately and the remainder are subject to future performance conditions, generally determined on the third anniversary of the grant date. The vesting of each grant is generally subject to the employee’s continued service with the Company through the applicable vesting date. The inducement grants are subject to the terms and conditions of award agreements covering the grants and the Company’s 2021 Inducement Stock Incentive Plan.
About GoHealth, Inc.
As a leading health insurance marketplace and Medicare-focused digital health company, GoHealth’s mission is to improve access to healthcare in America. Enrolling in a health insurance plan can be confusing for customers, and the seemingly small differences between plans can lead to significant out-of-pocket costs or lack of access to critical medicines and even providers. GoHealth combines cutting-edge technology, data science and deep industry expertise to match customers with the healthcare policy and carrier that is right for them. Since its inception, GoHealth has enrolled millions of people in Medicare plans and individual and family plans. For more information, visit https://www.gohealth.com/.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding the Company’s future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding profitability, value for stakeholders and shareholders, and the management transition are forward-looking statements. In some cases, you can identify forward-looking statements by terms, such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but are not limited to, the following: the Company’s ability to comply with the numerous, complex and frequently changing laws regulating the marketing and sale of Medicare plans; the potential for an adverse change in the Company’s relationships with carriers, including a loss of a carrier relationship; failure to grow the Company’s customer base or retain its existing customers; the time and cost of training agents are significant and can increase during a period of high attrition; carriers’ ability to reduce commissions paid to the Company and adversely change their underwriting practices; significant consolidation in the healthcare industry which could adversely alter the Company’s relationships with carriers; information technology systems failures or capacity constraints interrupting the Company’s operations; factors that adversely impact the Company’s estimate of LTV; the Company’s dependence on agents to sell insurance plans; changes in the health insurance system and laws and regulation governing health insurance markets; the inability to effectively advertise the Company’s products; and our ability to successfully implement our business plan during a global economic downturn caused by the COVID-19 pandemic.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release, as well as the cautionary statements and other risk factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and other SEC filings. If one or more events related to these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Many of the important factors that will determine these results are beyond the Company’s ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time-to-time, and it is not possible for us to predict which will arise. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
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