J. Andrew Peach
About J. Andrew Peach
J. Andrew Peach, 59, is Executive Vice President, Originations and Chief Lending Officer at Onity Group Inc. (ONIT), serving in this role since April 2024; he previously led Correspondent Lending and B2B Lending and was interim Head of Originations starting January 2024. He holds a B.S. in Finance and Marketing from the University of South Carolina, and has senior origination leadership experience at Mr. Cooper Group, Waterstone Mortgage, Pacific Union Financial, JPMorgan Chase, Aurora Loan Services, and Bank of America . During 2024, Onity delivered $33 million GAAP net income, $4.13 diluted EPS, and 8% ROE, improved book value per share to $56, and achieved servicing additions and recapture improvements; these outcomes underpin the AIP/TSR-linked framework that drives executive incentive payouts .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Onity Group Inc. | EVP, Originations & Chief Lending Officer | Apr 2024–present | Leads multi-channel originations; interim head of Originations in Jan 2024, aligned with growth/recapture objectives in AIP . |
| Onity Group Inc. | SVP, Correspondent Lending & B2B Lending | Mar 2021–Apr 2024 | Scaled correspondent/B2B channels; positioned for UPB growth and recapture improvements . |
| Mr. Cooper Group | SVP, Correspondent Sales | Aug 2020–Mar 2021 | Drove correspondent client growth, relevant to subservicing/UPB additions . |
| Waterstone Mortgage Corporation | President & CEO | Aug 2019–Jul 2020 | End-to-end mortgage leadership experience; execution track record in originations . |
| Pacific Union Financial; JPMorgan Chase; Aurora Loan Services; Bank of America | Senior roles (various) | Prior to 2019 | Deep origination/servicing experience across leading lenders . |
External Roles
- No public-company directorships or committee roles for Mr. Peach disclosed in the 2025 proxy .
Fixed Compensation
- Mr. Peach was not a named executive officer (NEO) in 2024; base salary, target bonus, and actual bonus are not disclosed for him in the proxy. Onity’s executive pay mix emphasizes variable compensation: for 2024 the CEO’s mix was 15% salary, 23% AIP, 62% LTIP; for non-CEO NEOs the average mix was 32% salary, 32% AIP, 36% LTIP .
| Element | Description | CEO Mix (2024) | Avg non-CEO NEO Mix (2024) |
|---|---|---|---|
| Salary | Fixed cash | 15% | 32% |
| Annual Incentive Plan (AIP) | Scorecard-funded, service excellence modifier, individual multiplier | 23% | 32% |
| Long-Term Incentive (LTIP) | 50% RSUs (3-year ratable vest), 50% PRSUs (3-year cliff, TSR vs peer group) | 62% | 36% |
Performance Compensation
- Company AIP Scorecard (2024) emphasized profitability, growth, productivity, and engagement; corporate funding was 134% and service excellence modifier was 107%, resulting in total AIP funding of 143% .
- LTIP PRSUs vest based on relative TSR vs a defined peer group, with multi-period measurement and three-year cliff; RSUs vest annually over three years .
| Metric (2024 Corporate Scorecard) | Weight | Threshold | Target | Maximum | Actual | Achievement | Weighted Achievement |
|---|---|---|---|---|---|---|---|
| Full-Year GAAP Net Income ($M) | 25% | -11.8 | 1.7 | 11.7 | 33.4 | 150% | 38% |
| Adjusted Pre-Tax ROE (%) | 25% | 8.5 | 11.6 | 13.7 | 20.0 | 150% | 38% |
| Servicing Efficiency (Adj. OpEx/Net Rev) | 8% | 32.4% | 30.8% | 29.3% | 28.9% | 150% | 12% |
| Originations Efficiency (Adj. OpEx/Revenue) | 2% | 72.8% | 69.3% | 65.8% | 57.4% | 150% | 3% |
| Corporate Functions Adjusted OpEx ($M) | 5% | 136 | 130 | 124 | 134 | 67% | 3% |
| Gross Recapture Rate (%) | 6.5% | 4.0 | 5.6 | 8.0 | 8.0 | 150% | 10% |
| Originations Cash Yield (pct pts > CoC) | 6.5% | 0.00 | 0.27 | 0.53 | 0.68 | 150% | 10% |
| MSR Growth (Gross Additions, $B UPB) | 4% | 22.1 | 24.5 | 26.9 | 40.6 | 150% | 6% |
| Subservicing Growth ($B UPB) | 4% | 54.9 | 68.7 | 82.4 | 44.9 | —% | —% |
| Servicing End-of-Year UPB ($B) | 4% | 297.8 | 315.5 | 332.5 | 301.7 | 61% | 2% |
| Employee Engagement (pp vs 2023) | 5% | -12 | +/-8 | 12 | 1.0 | 100% | 5% |
| Equal Opportunity & Inclusion (% objectives met) | 5% | 80% | 90% | 100% | 100% | 150% | 8% |
| Total AIP Funding | — | — | — | — | Corporate: 134%; Service Excellence: 107% | — | Total: 143% |
| LTIP PRSU TSR Outcomes (illustrative awards) | Year 1 TSR Percentile | Year 2 TSR Percentile | Year 3 TSR Percentile | 3-Year Cumulative TSR Percentile | Weighted Achievement |
|---|---|---|---|---|---|
| 2022 PRSUs | 90.9% | 6.1% | 80.5% | 39.0% | 94.3% |
| 2024 PRSUs | 75.4% | 50.0% | 50.0% | 74.8% | 134.9% (interim) |
Equity Ownership & Alignment
- Executives (other than the CEO in his capacity as director) have no formal stock ownership guidelines; however, shares acquired upon vesting of equity granted on or after March 31, 2022 are subject to a one-year holding period, supporting long-term alignment and tempering near-term selling pressure .
- Insider Trading Prevention Policy prohibits short sales, margin accounts, pledging company securities, and hedging (puts/calls or other transactions that hedge economic risk), further aligning ownership with shareholder interests .
- Beneficial ownership disclosures show directors/NEOs and group totals; Peach’s individual ownership is not separately disclosed, though the group total includes shares held by several current executive officers (including “A. James Peach”) among others; no pledging is disclosed for named executive officers or directors .
Employment Terms
| Term | Details |
|---|---|
| Employment status | At-will; no fixed-term employment agreements for executives; separation terms governed by offer letters, Severance Plans, and award agreements . |
| Start in current role | April 2024 as EVP Originations & CLO; interim head of Originations in Jan 2024 . |
| Restrictive covenants | Executives are subject to IP and non-disclosure obligations; non-compete/non-solicit may apply in specific circumstances per award agreements/separation arrangements (not specifically disclosed for Peach) . |
| Clawback | Incentive compensation clawback policy adopted Nov 10, 2023, compliant with SEC and NYSE rules; applies in addition to plan-level recoupment rights . |
| Severance (general framework) | CIC Severance Plan: 24× monthly base salary plus prorated AIP target and up to 24 months subsidized COBRA for qualifying terminations within 12 months post-CIC; Basic Severance Plan: 18× monthly base salary and up to 18 months subsidized COBRA for eligible terminations. Specific eligibility named for certain executives (Anderson, O’Neil, Wade, Zeleny); Peach’s severance eligibility not disclosed . |
| Equity vesting on termination/CIC | RSUs/PRSUs pro-rata vesting for termination without cause/retirement; PRSUs measurement treatment varies by grant year; double-trigger for CIC (awards vest at target if terminated without cause or resigning for good reason within 12 months post-CIC). Options generally vest on death/disability/retirement/termination without cause and immediately upon CIC per option agreements . |
Compensation Structure vs Performance Metrics
- AIP weighting in 2024: Net Income (25%), Adjusted Pre-Tax ROE (25%), Growth (UPB/MSR/Subservicing/Recapture/Cash yields) (25%), Productivity (15%), Engagement & Inclusion (10%); service excellence modifier adjusts ±20% based on customer satisfaction/quality .
- LTIP design: 50% RSUs (time-based, 3-year ratable), 50% PRSUs (TSR vs peer group, 3-year cliff); PRSU interim/actual outcomes by grant cohort detailed in the proxy .
- Shareholder governance: Say-on-Pay support 86.5% in 2024; no tax gross-ups (except taxable relocation), no option back-dating/repricing/reloading, no hedging or pledging, no single-trigger LTIP vesting .
Compensation Peer Group (Benchmarking)
- Peer group used for pay benchmarking includes Mr. Cooper Group, PennyMac, UWM, Radian, MGIC, Axos, Associated Banc-Corp, South State, Walker & Dunlop, Webster Financial, WSFS, BankUnited, Finance of America, Guild Holdings, LendingTree, loanDepot .
Performance & Track Record
- 2024 highlights supportive of originations leadership mandate: consumer direct originations volume up 2.5x, refinance recapture rate 1.6x industry average, $86B total servicing additions (including $47B subservicing) and servicing UPB to $302B; book value per share improved to $56 despite debt restructuring costs; AI-enabled productivity gains (50,000+ manual hours saved/month) .
- TSR-linked PRSU cohorts show strong relative performance achievement on several measurement periods in 2022 and 2024 cohorts .
Investment Implications
- Alignment: One-year holding on vested shares, prohibition on hedging/pledging, and TSR-based PRSUs support long-term shareholder alignment and reduce near-term selling pressure signals for executives, including Peach .
- Pay-for-performance: Corporate AIP funding at 143% reflects strong 2024 outcomes in profitability, efficiency, and recapture—key levers within Peach’s remit—suggesting incentives reinforce execution in originations efficiency and cash yields .
- Retention risk: At-will employment and absence of explicit executive ownership requirements (other than CEO as director) place retention emphasis on variable pay and LTIP grants; double-trigger CIC and clear severance frameworks reduce change-of-control disruption but Peach’s specific severance eligibility is not disclosed, which limits visibility on his individual retention economics .
- Governance quality: Robust clawback, no tax gross-ups, and strong say-on-pay support (86.5%) mitigate compensation red flags, while TSR-based PRSUs and adjusted ROE/Net Income targets align management rewards with value creation .