William B. Shepro
About William B. Shepro
William B. Shepro is Chairman and Chief Executive Officer of Altisource Portfolio Solutions S.A. (ASPS), appointed CEO and Director in July 2009 and elevated to Chairman in May 2019; he is 56 years old and holds a BS in Business from Skidmore College and a JD from Florida State University College of Law . He previously led Ocwen Solutions and Global Servicing Solutions, LLC (2003–2009), with deep operating experience across mortgage servicing and real estate technology . Governance-wise, he serves as both CEO and Chairman, with a Lead Independent Director in place to mitigate combined role concerns . Recent performance context: ASPS reported net losses in 2022–2024 and negative TSR over the same period; reported revenue modestly rose in FY 2024, and EBITDA turned positive, signaling early operating improvement amid capital structure changes tied to the February 2025 exchange transaction .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Total Shareholder Return (Initial Value $100) | $(15.69) | $(62.37) | $(81.46) |
| Net Income ($USD) | $(53,418,000) | $(56,290,000) | $(35,636,000) |
| Revenues ($USD) | $153,120,000* | $145,066,000* | $160,134,000* |
| EBITDA ($USD) | $(24,371,000)* | $(9,194,000)* | $9,986,000* |
Values with an asterisk were retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Global Servicing Solutions, LLC (Ocwen/Merrill Lynch JV) | President | 2003–2009 | Built/ran servicing JV; industry relationships and operating scale |
| Ocwen Solutions | President & Chief Operating Officer | Not disclosed | Led business unit operations and strategy |
| Ocwen Recovery Group | Senior Vice President | Not disclosed | Operations leadership in recovery servicing |
| Ocwen (Commercial Servicing) | Senior Vice President, Director & Senior Manager | Not disclosed | Managed commercial servicing operations |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Lenders One | Director | Current (not disclosed) | Industry network; information flow |
| Bungalow Living, Inc. | Director | Current (not disclosed) | Proptech exposure |
| Vested Communities Operating LLC | Board of Managers | Current (not disclosed) | Community investment perspective |
Fixed Compensation
| Year | Base Salary ($USD) | Stock Awards ($USD, grant-date fair value) | All Other Compensation ($USD) | Total ($USD) |
|---|---|---|---|---|
| 2023 | $927,412 (paid in EUR; see FX) | $1,185,575 | $288,662 | $2,401,648 |
| 2024 | $950,357 (paid in EUR; see FX) | $664,010 | $259,771 (incl. $104,882 tax gross-up) | $1,874,138 |
- Salary “Adjustment” (stock in lieu of cash): $285,108 of 2024 salary taken as stock; quarterly grants: 36,741 shares (Q1), 50,195 (Q2), 59,897 (Q3), 99,968 (Q4) at respective closing prices .
- Tax gross-ups: $104,882 paid on perquisites in 2024 .
- Clawback policy updated in 2024 per Nasdaq listing rules .
Performance Compensation
- Annual incentive design: Target amounts subject to company bonus pool determined by service revenue and adjusted EBITDA budget performance; Shepro’s target $1,425,530 with 95% weight on Adjusted EBITDA and 5% on Service Revenue . 2024 scorecard achievements: 84% (Service Revenue) and 87% (Adjusted EBITDA) .
- Payment form: 2024 annual incentive paid entirely in RSUs with vesting changes (60% vest at first anniversary; remaining 40% vests equally at first and second anniversaries), subject to continued employment .
- RSU reallocation: Shepro voluntarily reallocated 329,303 of his earned RSUs (76.7%) to employees; his final grant was 100,000 RSUs (effective value $71,000 at $0.71 per share) .
| Component | Metric | Weight | Target (not disclosed) | Actual Achievement | Payout/Grant | Vesting |
|---|---|---|---|---|---|---|
| 2024 Annual Incentive | Adjusted EBITDA | 95% | Not disclosed | 87% | 100,000 RSUs; $71,000 effective value | 60% at 1-year; 40% split at 1- and 2-year |
| 2024 Annual Incentive | Service Revenue | 5% | Not disclosed | 84% | Included in above | As above |
Long-term incentives (February 2024 LTIP):
- Time-based RSUs: 78,146; vest in three equal annual tranches on Feb 20, 2025/2026/2027 .
- Performance and market-based RSUs: 78,146; cliff vest on third anniversary (2027) based on adjusted EPS for 2024–2026 with a TSR modifier relative to Russell 2000; final earned range 0–225% of initial target .
| Award Type | Grant Date | Quantity | Vesting | Performance Conditions |
|---|---|---|---|---|
| Time-based RSUs | Feb 20, 2024 | 78,146 | 3 equal annual tranches (2025–2027) | None (service-based) |
| Perf/Market RSUs | Feb 20, 2024 | 78,146 | Cliff on 3rd anniversary (2027) | Adjusted EPS (2024–2026) with Russell 2000 TSR multiplier; 0–225% earn |
Additional notes:
- Prior market/performance RSUs granted in 2022 and 2023 have cliff vesting on 3rd anniversary subject to financial/market hurdles .
- Certain 2020 performance-based RSUs were cancelled by agreement as of Jan 29, 2025 .
- No stock options or SARs granted in 2024 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 1,301,658 shares; 1.49% of outstanding |
| Ownership components | Includes 1,006,282 shares held by the William B. Shepro Revocable Trust, 42,976 restricted shares vesting within 60 days of Mar 17, 2025, and options to purchase 252,400 shares exercisable within 60 days |
| Pledging/Hedging policy | Executives are prohibited from pledging or hedging company stock; no shares pledged by NEOs/Directors per policy and footnotes |
| Ownership guidelines | Corporate Governance Guidelines impose stock ownership requirements for the CEO; specifics not disclosed in proxy |
Outstanding equity detail (as of Dec 31, 2024; values measured at $0.66/share for table presentation):
- Options: 52,400 @ $18.79 expiring 4/15/2025; 200,000 @ $24.82 expiring 2/12/2028; plus prior performance-based options noted in footnotes .
- RSUs: Multiple service-based and performance/market-based tranches with scheduled vest dates on Mar 01, 2025; Mar 20, 2025; Mar 20, 2026; Feb 20, 2025; Feb 20, 2026; and Feb 20, 2027 .
Employment Terms
| Provision | CEO (William B. Shepro) |
|---|---|
| Agreement | Luxembourg employment agreement; indefinite term |
| Termination without Cause or Good Reason resignation | 12 months’ base salary plus at least one year of target incentive compensation; if terminated after Oct 1 and before incentives are paid, incentive for that service year is payable |
| Relocation | Standard relocation costs back to U.S. upon retirement, disability, or termination without cause |
| Non-compete | Minimum 1 year post-termination |
| Non-solicit | 1 year for CEO (2 years for other executives) |
| Clawback | Maintains clawback policy updated in 2024 |
Equity treatment on termination/change of control:
- Options: Retain vested options and any unvested market-based options where hurdles achieved if not terminated for Cause; accelerated vesting for service-based options in death/disability/retirement; buyer discretion to cancel or continue options on change of control; typical 6-month post-termination exercise window (exceptions apply) .
- RSUs/restricted shares: In some instances, immediate vesting upon death/disability/retirement; forfeiture upon resignation or termination for Cause; certain awards vest 30 days post termination without Cause; some awards vest upon Change of Control, subject to plan terms .
Board Governance
| Attribute | Details |
|---|---|
| Board service | Director since July 2009; Chairman since May 2019 |
| Independence | Not independent (serves as CEO) |
| Committees | Executive Committee member; Compliance Committee member (Aldridge chairs) |
| Board leadership | Combined CEO + Chair; Lead Independent Director (Roland Müller‑Ineichen) appointed to oversee independent sessions and act as liaison |
| Meeting attendance | All Directors attended ≥75% of board/committee meetings in 2024; Board met 14 times |
| Recusals/abstentions | Shepro abstained from votes related to his compensation, equity plan share increase, and RSU grants tied to the 2025 Transaction |
| Director compensation | As a management Director, Shepro receives no board retainer or committee fees |
Investment Implications
- Alignment and retention: The 2025 management incentive RSU plan with three-year vesting enhances retention and aligns pay with long-term execution; Shepro’s voluntary reallocation of 329,303 earned RSUs to other employees reinforces team retention and culture .
- Sell pressure and overhang: Multi-tranche RSU vesting across 2025–2027 and exercisable options could create periodic selling pressure; however, anti-pledging/anti-hedging policies reduce misalignment risk .
- Pay-for-performance: Annual incentive heavily tied to adjusted EBITDA (95% for CEO) with scorecard achievements below 100% and payment in RSUs aligns with liquidity preservation and recovery focus; long-term awards include adjusted EPS and relative TSR versus Russell 2000, linking pay to value creation .
- Governance risk mitigants: Combined CEO/Chair structure is offset by Lead Independent Director and regular executive sessions; the CEO abstains on decisions affecting his compensation, reducing conflict-of-interest concerns .
- Red flags: 2024 perquisite tax gross-ups ($104,882) are shareholder-unfriendly; repeated negative net income and TSR trends remain execution risks despite EBITDA improvement in 2024 .
- Contract economics: CEO severance (12 months base + ≥1 year target bonus) and favorable equity vesting terms on certain terminations represent moderate change-of-control/termination economics; non-compete/non‑solicit provisions help protect franchise value .
Values with an asterisk were retrieved from S&P Global.