In a letter received by the Board of Director of The Ensign Group, Inc. dated December 19, 2022, Lee A. Daniels announced his decision to resign from the Board effective on January 1, 2023 to focus on other endeavors. Mr. Daniels has served as member of the Board since June 2013. At the time of his resignation, he was serving as the Chair of the Compensation Committee.

Mr. Daniels will continue his service on the Board and his respective committee assignments until his resignation is effective on January 1, 2023. During a meeting on the same day, the Board appointed John O. Agwunobi, M.D., to fill the vacancy created by Mr. Daniel's resignation. Dr. Agwunobi's appointment is for a term starting on January 1, 2023 and ending on the date of the Company's 2023 annual shareholders meeting.

It is anticipated that the Board will nominate Dr. Agwunobi for election by shareholders at the Company's 2023 annual shareholders meeting to serve as a Class III director for a two-year term ending at the Company's annual shareholder meeting in 2025. Dr. Agwunobi has held several positions in both the public and private sector. From March 2020 until October 2022, Dr. Agwunobi served as Chief Executive Officer and Chairman of Herbalife Nutrition Inc. Previously, Dr. Agwunobi served as Chief Health and Nutrition Officer at Herbalife, responsible for training, education, science strategy and product development since 2016.

He has also served as Co-President of Herbalife from May 2018 to April 2022. Prior to joining Herbalife, Dr. Agwunobi was an independent consultant, advising a number of privately-held health-related companies, including serving as an advisory board member of Shopko Stores Operating Co., LLC on behalf of the private equity firm Sun Capital Partners. He also served as a member of the board for Magellan Health Inc., a for-profit managed health care company focused on special populations, complete pharmacy benefits and other specialty areas of healthcare from December 2014 to June 2019.

From September 2007 to April 2014, Dr. Agwunobi served as Senior Vice President and President of Health and Wellness for Walmart Inc. in the United States, where he grew the business and provided insight and advice on the company's health reform position. From December 2005 to September 2007, he served as the Assistant Secretary of Health for the U.S. Department of Health and Human Services, where he was responsible for disease prevention and health promotion. His responsibilities included the oversight of the Centers for Disease Control, National Institute of Health, the U.S. Food and Drug Administration, the Office of the U.S. Surgeon General, and numerous other public health offices and programs. Dr. Agwunobi currently serves as a director for Blue Bird Bio Inc., a post that he has held since June 2017.

He is also currently serving as a member of the board of the U.S. African Development Foundation and has been serving in that capacity since 2008. Also, effective January 1, 2023, the Board also appointed Ms. Abbott to serve as the Chair of the Compensation Committee with Mr. Barry M. Smith and Mr. Shaw. No changes were made to the Nomination and Corporate Governance Committee.