Scott W. Anderson
About Scott W. Anderson
Scott W. Anderson, age 56, is Executive Vice President and Chief Servicing Officer at Onity Group, a role he has held since 2009 after serving as Senior Vice President, Residential Assets from 2001 to 2009; he joined Onity in 1993 and previously worked at CIGNA. He holds a BA in Economics from Bowdoin College . Company performance during 2024 included net income of $33.4M, diluted EPS $4.13, and adjusted ROE of 20% amid strategic debt restructuring and portfolio growth . Over the last five years, the company’s cumulative TSR was 149 in 2024 vs 150 in 2023 (peer group 160 in 2024) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Onity Group Inc. | EVP & Chief Servicing Officer | 2009–present | Led servicing efficiency, customer NPS improvements, and subservicing growth |
| Onity Group Inc. | SVP, Residential Assets | 2001–2009 | Managed residential assets through cycles; foundation for servicing leadership |
| Onity Group Inc. | Various roles after joining | 1993–2001 | Early tenure building servicing expertise |
| CIGNA | Employee | Pre-1993 | Early-career experience prior to joining Onity |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| CIGNA | Employee | Pre-1993 | Insurance sector experience prior to Onity |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $500,000 | $500,000 | $500,000 |
| Target Bonus % of Salary | — | — | 100% |
| Target Bonus ($) | — | — | $500,000 |
| Target Total Cash ($) | — | — | $1,000,000 |
Performance Compensation
Annual Incentive (AIP) Outcome and Drivers
| Component | Value | Source |
|---|---|---|
| Organizational Performance Funding | 147% | Corporate scorecard + service excellence |
| Individual Performance Multiplier | 110% | Leadership, risk/compliance, BU priorities |
| Net Income Modifier | +15% | Above maximum GAAP net income threshold |
| Final Award (% of Target) | 177% | Compensation Committee determination |
| Final Award ($) | $884,000 | Reported non‑equity incentive for 2024 |
AIP Scorecard Metrics (Company-level targets applied to AIP funding)
| Metric | Weight | Target | Actual | Achievement | Notes |
|---|---|---|---|---|---|
| Full-Year GAAP Net Income ($M) | 25% | $1.7 | $33.4 | 150% | Above max; drove +15% modifier |
| Adjusted Pre-Tax ROE (%) | 25% | 11.6 | 20.0 | 150% | Above max after strategic transactions |
| Servicing Efficiency Ratio | 8% | 30.8% | 28.9% | 150% | Cost leadership in servicing |
| Originations Efficiency Ratio | 2% | 69.3% | 57.4% | 150% | Productivity gains |
| Employee Engagement | 5% | ±8 pts | +1 pt | 100% | Stable engagement |
| Equal Opportunity & Inclusion | 5% | 90% | 100% | 150% | Roadmap execution |
| Service Excellence Modifier | n/a | 100% | 107% | 107% | NPS ↑; CFPB complaints metric below target |
Long-Term Incentive (LTIP) Design and 2024 Grants (Settles in Shares)
| Element | Target Value ($) | Units Granted | Vesting | Performance Metric |
|---|---|---|---|---|
| RSUs (time-based) | $300,000 | 11,481 | 1/3 annually over 3 years | Service-based |
| PRSUs (performance) | $300,000 | 11,481 (target) | Cliff at year 3 | Relative TSR vs peer group with 4 weighted periods |
Performance periods for PRSUs: Periods 1–3 are single-year windows weighted 15% each; Period 4 is the three-year window weighted 55%; payout interpolated from threshold (25th percentile) to max (1st rank) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 40,944 shares (<1%) as of Apr 10, 2025 |
| Owned vs Unvested (as of Mar 31, 2025) | Owned: 38,818; Unvested Units: 52,211 |
| Options | 2,185 options exercisable at $152.10, expiring Feb 24, 2025 |
| Outstanding RSUs (by grant date) | 3,064 (3/31/2022); 7,012 (4/3/2023); 11,481 (3/29/2024) |
| Outstanding PRSUs (by grant date) | 18,382 (3/31/2022); 5,259 (4/3/2023); 22,962 (3/29/2024) |
| Shares acquired on vesting (2024) | 21,435; value realized $573,793 |
| Holding requirement | One-year holding on shares acquired from equity granted on/after Mar 31, 2022 |
| Hedging/pledging | Prohibited; no short sales, margin accounts, pledging, or hedging transactions |
| Ownership guidelines | No formal executive ownership requirement (CEO as director subject to director guideline) |
Employment Terms
- Severance (Non-CIC): Lump sum equal to 18× monthly base salary; subsidized COBRA up to 18 months, conditioned on separation and release .
- Change in Control (double trigger): If terminated without cause or resigns for good reason within 12 months of CIC, lump sum equal to 24× monthly base salary plus prorated AIP target; subsidized COBRA up to 24 months .
- Equity treatment:
- RSUs/PRSUs accelerate pro‑rata upon death/disability; PRSU measurement periods deemed target for future periods (and measured as of termination for open periods in 2023/2024 grants) .
- Voluntary resignation (not for good reason): unvested awards forfeited .
- CIC: awards continue; target deemed for incomplete measurement periods; double-trigger accelerates at target .
- Clawback: Incentive compensation clawback policy adopted Nov 10, 2023, compliant with SEC and listing rules .
- Restrictive covenants: IP and confidentiality agreements; certain non-compete covenants tied to 2020 special cash awards .
Compensation Structure Analysis
- Year-over-year AIP alignment tightened around GAAP net income; added +/-15% net income modifier reinforcing profitability focus .
- LTIP entirely equity-settled with 50% PRSUs linked to relative TSR vs an industry peer group, increasing direct pay linkage to shareholder returns .
- Governance: No single-trigger LTIP vesting; no tax gross‑ups; no option re-pricing or reloading; hedging/pledging prohibited .
Multi-Year Compensation (Reported)
| Year | Salary ($) | Bonus ($) | Stock Awards ($) | Non-Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | 500,000 | 350,000 | 529,126 | 294,800 | 9,150 | 1,683,076 |
| 2023 | 500,000 | — | 1,053,239 | 574,750 | 9,900 | 2,137,889 |
| 2024 | 500,000 | — | 695,519 | 884,000 | 10,350 | 2,089,869 |
Company Performance Context
Annual Fundamentals (USD)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | 862,600,000* | 947,300,000* | 832,500,000* |
| Net Income ($) | 25,700,000* | (63,700,000)* | 33,900,000* |
| EBITDA ($) | 408,700,000* | 666,600,000* | 547,900,000* |
Values retrieved from S&P Global.*
Quarterly Fundamentals (USD)
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenues ($) | 206,000,000* | 203,300,000* | 211,300,000* | 217,500,000* |
| Net Income ($) | (28,100,000)* | 22,100,000* | 21,500,000* | 18,700,000* |
| EBITDA ($) | 111,100,000* | 131,500,000* | 138,300,000* | 155,700,000* |
Values retrieved from S&P Global.*
Note: Company-reported “total revenue” for 2024 was $976.0M with component detail; GAAP net income $33.4M and diluted EPS $4.13 .
Compensation Peer Group and Say-on-Pay
- Compensation benchmarking peer group: Associated Banc‑Corp; Axos Financial; BankUnited; Finance of America Companies; Guild Holdings; LendingTree; loanDepot; MGIC Investment; Mr. Cooper Group; PennyMac Financial; Radian Group; South State; UWM Holdings; Walker & Dunlop; Webster Financial; WSFS Financial .
- LTIP TSR peer group (performance measurement): Annaly Capital; Better Home & Finance; Cherry Hill Mortgage; Finance of America; Guild Holdings; loanDepot; MGIC Investment; Mr. Cooper Group; PennyMac Financial; Radian Group; Redwood Trust; Rithm Capital; Rocket Companies; Two Harbors; UWM Holdings .
- Say-on-Pay approval: 86.5% votes in favor in 2024 .
Track Record, Value Creation, and Execution Risk
- 2024 execution highlights: Highest net income since 2013; $86B servicing additions (subservicing $47B); book value per share +$4 YoY to $56; debt restructuring lowered interest expense; multiple industry awards (Freddie Mac SHARP; Fannie Mae STAR; HUD Tier 1) .
- Execution risks disclosed: Regulatory scrutiny (CFPB, HUD, SEC); reliance on technology vendors; GSE/Ginnie requirements; servicer and credit ratings; client retention (e.g., Rithm renewal timing); MSR hedge effectiveness .
Investment Implications
- Alignment: Significant unvested RSUs/PRSUs and one-year post-vesting holding requirement support long-term alignment; hedging/pledging banned, reducing misalignment risk .
- Incentive quality: AIP tightly anchored to GAAP net income and adjusted ROE with service and productivity metrics; PRSUs tied to relative TSR across weighted periods, reinforcing shareholder value orientation .
- Retention risk: Material unvested equity and pro‑rata vesting on certain terminations mitigate flight risk; double‑trigger CIC treatment avoids windfalls while providing reasonable protection . 2024 AIP payout (177% of target) and strong servicing performance suggest high engagement .
- Selling pressure: Regular RSU vesting and PRSU cliffs can create mechanical selling windows for tax or diversification; 21,435 shares vested in 2024, value $573,793 . Monitor Form 4s around quarterly/anniversary vesting dates for potential supply.
- Governance safeguards: No tax gross‑ups; no option re-pricing; clawback in place; no single-trigger vesting; robust insider trading policy .