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Francois Grunenwald

Senior Vice President and Chief Accounting Officer at ONITY GROUP
Executive

About Francois Grunenwald

Francois Grunenwald is Senior Vice President and Chief Accounting Officer at Onity Group Inc. (ONIT), serving since August 2019; he is 54 years old, a Certified Public Accountant, and holds a Master’s in Finance and Banking from the University of Paris II Panthéon-Assas . Company performance metrics driving executive pay include GAAP net income ($33M), diluted EPS ($4.13), and ROE (8%) for 2024, with long-term equity tied to relative total shareholder return (TSR) versus a defined peer group .

Past Roles

OrganizationRoleYearsStrategic Impact
Onity Group Inc.SVP & Chief Accounting Officer2019–presentLeads accounting and financial reporting; executive officer oversight
PricewaterhouseCoopersPartner (Financial Services)~2007–2019Advised financial services clients; senior leadership role
PricewaterhouseCoopersVarious accounting/advisory roles1996–2007Progressive responsibilities in financial advisory

External Roles

No public company directorships or external board roles are disclosed for Grunenwald in Onity filings .

Fixed Compensation

ComponentAmount/TermsEffective DateSource
Base Salary$410,000Aug 12, 2019
Target Annual Cash Incentive$230,000 (discretionary based on individual and company performance)Aug 12, 2019
Sign-on Bonus$100,000 (repayable if resignation within 12 months)Aug 12, 2019
Additional Bonus$75,000 at completion of first yearAug 12, 2019
Initial LTIP Target Award$150,000 (subject to Compensation Committee approval in 2020)2020
RelocationEligible for reimbursement of certain expenses2019

Note: Current base salary/bonus targets are not itemized in the 2025 proxy because Grunenwald is not a Named Executive Officer (NEO) .

Performance Compensation

Award/MetricGrant/PeriodTargetActualPayout/TermsVestingSource
RSU grant3,532 RSUs granted3 equal annual tranchesCash-settled upon vestVests ~1,177 per year on/around Apr 3, 2024–2026
RSU vesting (cash settlement)Apr 3, 20251,177 RSUs vestedSettled in cash per award terms3-year schedule
PRSU (TSR-based)Award measured Mar 2, 2024100% at 50th percentile TSR109% of targetAbove-target payoutCliff vest at end of 3-year period; company program standard
LTIP structureAnnual LTIP awards50% time-vested RSUs; 50% PRSUs tied to TSRPRSUs payout based on TSR vs peer group; RSUs time vestRSUs over 3 years; PRSUs 3-year cliff
TSR program outcomes (illustrative)2021 PRSU final100%109.1%Above-targetPer program
TSR program outcomes (illustrative)2024 PRSU Period 1100%150.8%Above-target for first measurement periodPer program

AIP (Annual Incentive Plan) metrics and weightings that apply to executive officers (including CAO) are shown below; awards are funded by corporate scorecard and adjusted for service excellence and net income modifiers :

AIP MetricWeightThresholdTargetMaximum2024 PerformanceAchievementWeighted AchievementSource
GAAP Net Income ($M)25%-11.81.711.733.4150%38%
Adjusted Pre-Tax ROE25%8.5%11.6%13.7%20%150%38%
Servicing Efficiency Ratio8%32.4%30.8%29.3%28.9%150%12%
Originations Efficiency Ratio2%72.8%69.3%65.8%57.4%150%3%
Corporate Functions Adjusted OpEx ($M)5%13613012413467%3%
Gross Recapture Rate6.5%4.0%5.6%8.0%8.0%150%10%
Originations Cash Yield6.5%0.00%0.27%0.53%0.68%150%10%
MSR Growth (UPB $B)4%22.124.526.940.6150%6%
Subservicing Growth (UPB $B)4%54.968.782.444.9—%—%
Servicing EoY Total UPB ($B)4%297.8315.5332.5301.761%2%
Employee Engagement5%-12+/-8121.0100%5%
Equal Opportunity & Inclusion5%80%90%100%100%150%8%
Corporate Scorecard Total100%134%
Service Excellence Modifier80%100%120%107%
Total Funding Result143%

Equity Ownership & Alignment

  • Beneficial ownership: The proxy aggregates 27,037 shares held by certain executive officers including Grunenwald (not NEO), but does not break out his individual holding . No shares have been pledged by named executive officers or directors, and company policy prohibits pledging and hedging .
  • Stock ownership guidelines: Executives do not have formal ownership requirements (CEO is covered as a director), but all executive equity awards granted on/after Mar 31, 2022 have a one-year holding requirement on shares acquired upon vesting; philosophy emphasizes equity ownership to align interests .
  • RSU/PRSU positions and vesting events are current via Form 4s: 3,532 RSUs granted Apr 3, 2023 (three equal annual vesting tranches); 1,177 RSUs vested and cash-settled Apr 3, 2025; PRSU payout at 109% of target on Mar 2, 2024 .

Employment Terms

  • Employment: At-will; Company does not maintain fixed-term employment agreements for executive officers; no tax gross-ups (other than relocation); no option back-dating/repricing; hedging and pledging prohibited .
  • Clawback: Incentive compensation clawback compliant with SEC/Dodd-Frank adopted Nov 10, 2023; additive to plan-level recoupment rights .
  • Restrictive covenants: NEOs execute IP and non-disclosure agreements; non-compete/non-solicit can apply in separation agreements and select awards; executives’ equity award post-retirement vesting/exercises may be conditioned on covenant compliance .
  • Change-in-control economics: RSUs/PRSUs feature double-trigger accelerated vesting (requires change in control plus termination without cause or resignation for good reason); options generally vest upon change in control; RSUs/PRSUs pro-rata vest upon death/disability; unvested units are forfeited upon voluntary resignation (without good reason) .
  • Insider trading policy: Prohibits short sales, margin accounts, pledging, puts/calls, and hedging transactions in Company stock for all directors, officers, and employees .

Investment Implications

  • Compensation alignment: TSR-based PRSUs with peer-relative measurement and above-target outcomes (e.g., 109% payout in 2024 measurement; strong interim TSR results in 2024) support pay-for-performance and equity-linked alignment for senior finance leadership, including the CAO .
  • Insider selling pressure: RSUs vesting under a three-year schedule with cash settlement reduces immediate incremental share issuance and may limit open-market sales; recent Form 4s indicate cash settlement rather than stock sale transactions (Apr 3, 2025) .
  • Retention risk: Double-trigger vesting and one-year post-vest holding requirements enhance retention and governance; no fixed-term employment and clawback provisions temper risks of misalignment .
  • Governance red flags: Company-wide prohibitions on pledging/hedging and absence of tax gross-ups are shareholder-friendly; 2024 Say-on-Pay passed with 86.5% support, indicating investor acceptance of pay design .

Sources and Additional Notes

  • Executive biography and role, age, and officer roster .
  • 2019 offer letter terms (Ocwen; predecessor to Onity) .
  • AIP scorecard, metrics, and 2024 funding results .
  • LTIP/PRSU structure and TSR results .
  • Clawback policy and restrictive covenant framework .
  • Insider trading and anti-pledging/hedging policy .
  • Beneficial ownership (aggregate disclosure for non-NEO executives including Grunenwald) .
  • Say-on-Pay 2024 outcome .
  • Form 4 filings (ownership and transactions) .