2y
Thanks for sharing your thoughts. First, I want to acknowledge the concern in this feedback. I’m sorry that these changes feel upsetting and would welcome the opportunity to connect 1:1 to fully hear your thoughts. We have, indeed, just announced one of the biggest compensation framework adjustments in our company’s history. We made these changes as part of our 2024 operating plan, which required us to close out and understand performance for 2023. Hence, there is a delay between the start of the calendar year and the formulation and approval of our operating plan.
Our new compensation and benefits framework reflects benchmarks for publicly traded and private companies like ours, and is designed to be meaningfully positive for team members, based on team members' direct feedback, while also enabling the company to operate profitably. And it included some meaningful, positive updates for core team members, including you, regarding an upcoming base salary increase of 5% that you’ll receive this December. This was based on team members’ direct feedback that base salary was by far the most important component of compensation, and as such, it became our highest priority compensation item in the 2024 operating plan. We’re grateful to be able to provide this above-inflation and above-market increase to core team members in recognition of your significant contributions to our company’s growth and success, even while also operating profitably as a company. While I don’t agree with your premise that we were dishonest, I understand that the change in wellness benefits may have been unexpected.
At the same time we announced the change to the wellness benefit, which was a reduction, we also announced a number of new benefits, which also would be unexpected but positive. Let me share a bit more information and clarify and correct a misunderstanding of the new sabbatical benefit that you described in your review. This four-week sabbatical, beginning in 2025, is for any team member who has reached 7 years of service at Health Catalyst. I am grateful we can add this benefit, available to every team member who reaches 7 years of service, including you in a few years, to rest, recharge, and renew, in recognition of your meaningful contributions.
As for me, as is often the case, I won't likely be in a position to take advantage of this sabbatical benefit, based on the heavy responsibilities of this role. This has been the case for me with a number of the company's benefits over the past 13 1/2 years of my involvement at the company, based on the requirements of this role. But this is fine, and it's consistent with the principles of servant-leadership that are part of the Health Catalyst Way.
That same principle of servant-leadership informed my personal decision from July 2022 through December of 2023 to voluntarily work for no base salary, no bonus, and no equity compensation, during a particularly challenging time in our company’s history. I’m grateful for the sacrifices that every team member makes to help our company achieve its mission, and I believe that servant-leaders should be the first to sacrifice and should exercise the greatest humility in their interactions with teammates. I hope this response helps clarify what we have done and why we’ve done it, including our efforts to live up to the principles embedded in the Health Catalyst Way. Again, I welcome the opportunity to connect with you directly and hear your feedback in a 1:1 setting, if you would be open to this. Thanks for your four years of contributions to our success!
Best,
Dan Burton
