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Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), currently trading at $0.70 per share and down over 78% in the past year according to InvestingPro data, has announced key changes to its executive compensation structure, according to a recent 8-K filing with the Securities and Exchange Commission (SEC). The company reported that its Chairman and Chief Executive Officer, William B. Shepro, and Chief Financial Officer, Michelle D. Esterman, have rescinded their voluntary agreements to accept a portion of their base compensation in company stock. Effective February 1, 2025, both executives will receive their full base salaries in cash.
The decision reverses a temporary measure that was part of a cost reduction plan initiated in July 2023, wherein up to 30% of their base compensation was paid in unrestricted common stock. Additionally, certain executives, including the Named Executive Officers (NEOs), agreed to terminate 112,000 market-based restricted stock units (RSUs) awarded in October 2020. These changes come as the company, with a market capitalization of just $18.8 million, faces significant financial challenges, including short-term obligations exceeding liquid assets, as revealed by InvestingPro analysis.
Furthermore, on January 29, 2025, the Compensation Committee approved the grant of new Management RSUs to certain members of management, including the NEOs, which will vest subject to the closing of the company’s pending transactions to restructure its term loans. These transactions are contingent on shareholder approval and are detailed in the Proxy Statement filed on January 3, 2024.
The Management RSUs, representing up to 5% of the company’s post-transaction common stock, will vest over three years and are part of an agreement with the Consenting Lenders to incentivize management’s performance. The NEOs’ allocation of Management RSUs amounts to 4.5109% of the post-transaction common stock, with Shepro receiving 2.7174%, Esterman 0.9783%, and Chief Legal & Compliance Officer Gregory J. Ritts 0.8152%.
The Compensation Committee also determined that the NEOs will not participate in the company’s Long-Term Incentive Plans for the years 2025 to 2027 due to the issuance of the Management RSUs.
This information is based on a press release statement and reflects the company’s current plans and expectations, which are subject to change. While InvestingPro data suggests the stock is currently trading below its Fair Value, investors should note that the company’s overall Financial Health Score remains weak at 1.46 out of 5. For deeper insights into ASPS’s valuation and 12+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
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