PRA Group appoints new CEO and European president, reports annual meeting results

PRA Group, Inc. (NASDAQ:PRAA), a debt collection company currently trading at $15.29, announced several executive appointments and reported the results of its 2025 Annual Meeting, according to a statement filed with the Securities and Exchange Commission. According to InvestingPro analysis, the company appears undervalued despite facing recent challenges, with the stock down nearly 29% year-to-date.

Effective Tuesday, Martin Sjolund assumed the roles of President and Chief Executive Officer of PRA Group. In connection with his appointment, Mr. Sjolund’s service agreement was amended to reflect his new position, increase his annual base salary to $825,000, and raise his target bonus opportunity to 125% of his annual salary. On the same day, he was granted an equity award valued at $1.8 million, split evenly between performance-based and time-based restricted stock units, which will vest over three years.

Also effective Tuesday, R. Owen James was promoted to President of PRA Group Europe. Mr. James previously served as Executive Vice President, Global Investments Officer since June 2023, and as Managing Director of Acquisitions for Europe from July 2014 to June 2023. His contract was amended to reflect the new title and a 10% increase in annual base salary to £369,400 ($469,067, based on the June 17, 2025 GBP to USD exchange rate of 1.3429). Mr. James was also granted time-based restricted stock units valued at $100,000, vesting over three years.

The company stated there are no arrangements or understandings with other parties regarding Mr. James’s selection, and he has no family relationships with directors or executive officers of PRA Group. Mr. Sjolund was also appointed to the company’s Board of Directors, effective immediately, to serve until the 2026 Annual Meeting or until a successor is elected. He will not receive additional compensation for board service.

At the 2025 Annual Meeting held Tuesday, stockholders elected all nominated directors to serve until the 2026 meeting. The appointment of Ernst & Young LLP as independent registered public accounting firm for the year ending December 31, 2025, was ratified. Stockholders also approved the advisory vote on executive compensation.

All information is based on a press release statement filed with the SEC.

In other recent news, PRA Group reported a first-quarter 2025 earnings per share (EPS) of $0.09, significantly missing the analyst estimate of $0.44. The company’s revenue for the quarter was $269.62 million, falling short of the consensus estimate of $291.14 million. Despite a 19% increase in portfolio purchases and a record estimated remaining collections of $7.8 billion, lower-than-expected cash collections in the U.S. impacted profitability. Fitch Ratings downgraded PRA Group’s Long-Term Issuer Default Rating to ’BB’ from ’BB+’, citing increased leverage and ongoing debt-funded portfolio purchases. Similarly, S&P Global Ratings revised its outlook on PRA Group to negative from stable due to elevated leverage ratios. Citizens JMP analyst David Scharf adjusted the price target for PRA Group to $23 from $30, maintaining a Market Outperform rating, while Raymond (NSE:RYMD) James analyst Robert Dodd kept a Market Perform rating. The company also announced a leadership change with Owen James being named president of PRA Group Europe. Despite these challenges, PRA Group’s European operations showed strong performance, contributing positively to the company’s overall results.

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