Sean B. O’Neil
About Sean B. O’Neil
Executive Vice President and Chief Financial Officer of Onity Group Inc. since June 13, 2022; age 59 as of April 10, 2025. Education: MBA from Harvard University and B.S. in Mechanical Engineering from Pennsylvania State University; early career as a U.S. Navy submarine officer . Under the CFO’s tenure, Onity delivered FY2024 GAAP net income of $33 million, diluted EPS of $4.13 and 8% ROE, alongside balance sheet strengthening via debt restructuring and strategic transactions . Company cumulative TSR since 2019 was $149 in 2024 vs peer group $160, with executive pay tightly linked to TSR and profitability metrics through AIP and PRSUs .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bayview Asset Management, LLC | Chief Financial Officer | 2015–2022 | Led finance at a large mortgage asset manager; experience in capital markets and liquidity . |
| Wells Fargo (Eastern Community Bank) | Group Financial Officer | n/d | Senior finance leadership in banking segment, supporting reporting and performance management . |
| Wachovia Wealth Management Group | Chief Financial Officer | n/d | CFO oversight for wealth unit; controls, planning, and profitability . |
| U.S. Navy | Submarine Officer | n/d | Technical leadership and operations discipline . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | — |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $285,577 | $550,000 | $550,000 |
| Bonus ($) | $125,000 (sign-on installment) | $250,000 (sign-on) | $125,000 (sign-on, third installment) |
| Stock Awards (Grant-date fair value) ($) | $2,010,228 | $1,088,238 | $753,467 |
| Option Awards ($) | — | — | — |
| Non-Equity Incentive ($) | $278,586 | $569,388 | $900,000 |
| All Other Compensation ($) | — | — | $10,350 (401k match) |
| Total ($) | $2,699,391 | $2,457,626 | $2,338,817 |
| Target Cash Compensation Components (as of 12/31/2024) | Amount ($) | Notes |
|---|---|---|
| Base Salary | $550,000 | — |
| Target AIP (Bonus) | $550,000 (100% of salary) | Variable; 200% cap . |
| Annual Total Target Cash | $1,100,000 | — |
Performance Compensation
Annual Incentive Plan (AIP) – Corporate Scorecard and O’Neil Payout
| Component | Value |
|---|---|
| Corporate Scorecard Funding | 134% |
| Service Excellence Modifier | 107% |
| Combined Baseline Funding | 143% |
| Organizational Performance Allocation (Finance) | 144% |
| Individual Performance Multiplier | 106% |
| Net Income Modifier | +11% |
| Final Award as % of Target | 164% |
| AIP Key Metric | Weight | Threshold | Target | Maximum | 2024 Actual | Achievement (% of target) |
|---|---|---|---|---|---|---|
| GAAP Net Income ($M) | 25% | -$11.8 | $1.7 | $11.7 | $33.4 | 150% |
| Adjusted Pre-Tax ROE (%) | 25% | 8.5 | 11.6 | 13.7 | 20 | 150% |
| Servicing Efficiency Ratio | 8% | 32.4% | 30.8% | 29.3% | 28.9% | 150% |
| Originations Efficiency Ratio | 2% | 72.8% | 69.3% | 65.8% | 57.4% | 150% |
| Corporate Functions Adj. OpEx ($M) | 5% | 136 | 130 | 124 | 134 | 67% |
| Gross Recapture Rate | 6.5% | 4.0 | 5.6 | 8.0 | 8.0 | 150% |
| Originations Cash Yield (pp vs CoC) | 6.5% | 0.00 | 0.27 | 0.53 | 0.68 | 150% |
| MSR Growth ($B UPB) | 4% | 22.1 | 24.5 | 26.9 | 40.6 | 150% |
| Subservicing Growth ($B UPB) | 4% | 54.9 | 68.7 | 82.4 | 44.9 | 0% |
| Servicing End-of-Year UPB ($B) | 4% | 297.8 | 315.5 | 332.5 | 301.7 | 61% |
| Employee Engagement (pp vs 2023) | 5% | -12 | +/-8 | 12 | 1.0 | 100% |
| D&I Roadmap Execution (%) | 5% | 80 | 90 | 100 | 100 | 150% |
| Service Excellence Metrics (selected) | Weight | Threshold | Target | Maximum | Actual | Achievement |
|---|---|---|---|---|---|---|
| Lending Retail NPS | 15% | 60 | 70 | 80 | 69 | 99% |
| Servicing Client NPS (Tier1-3) | 15% | 40 | 50 | 60 | 61 | 120% |
| CFPB Complaints per 1,000 loans | 15% | 0.78 | 0.70 | 0.62 | 0.79 | 80% |
| Servicing Ops Metrics within Spec (%) | 15% | 94.3 | 95.3 | 96.3 | 96.4 | 120% |
Long-Term Incentive Plan (LTIP) – PRSUs and RSUs
| 2024 LTIP Target Values (settled in shares) | RSUs ($) | PRSUs ($) | Total ($) |
|---|---|---|---|
| Sean B. O’Neil | $325,000 | $325,000 | $650,000 |
| 2024 LTIP Grants (units) | Grant Date | Type | Threshold (#) | Target (#) | Maximum (#) | Vesting |
|---|---|---|---|---|---|---|
| AIP (non-equity, ref. payout above) | 3/29/2024 | — | — | — | — | Paid Q1’25 per AIP . |
| Equity PRSUs | 3/29/2024 | PRSU | 6,219 | 12,438 | 24,876 | Cliff vest at 3 years; multi-period relative TSR . |
| Equity RSUs | 3/29/2024 | RSU | — | 12,437 | — | Equal thirds on 1st/2nd/3rd anniversaries . |
| PRSU Performance Periods | Period | Weight | TSR Vesting Curve |
|---|---|---|---|
| Year 1 | 3/29/2024–3/29/2025 | 15% | 25th pct = 50%; 50th pct = 100%; top rank = 200%; interpolate; service through year 3 required . |
| Year 2 | 3/29/2025–3/29/2026 | 15% | As above . |
| Year 3 | 3/29/2026–3/29/2027 | 15% | As above . |
| 3-Year Cumulative | 3/29/2024–3/29/2027 | 55% | As above . |
Equity Ownership & Alignment
| Ownership Snapshot | Shares/Units | Value ($) | Notes |
|---|---|---|---|
| Beneficial Ownership (as of 4/10/2025) | 30,965 shares | n/a | Less than 1% of class; no pledged shares . |
| Owned Shares (as of 3/31/2025) | 28,662 shares | $927,716 at $32.32 | Value derived from table . |
| Unvested Stock Units (as of 3/31/2025) | 99,052 units | $3,199,999 at $32.32 | Includes RSUs and PRSUs . |
| Illustrative Value at Fully Diluted Book Value ($50.19) | — | $6,409,966 | Alignment to book value per share illustration . |
| Options Outstanding | None | — | — |
| Insider Trading Policy | — | — | Hedging, short sales, options, margin, and pledging prohibited . |
| Ownership Guidelines | — | — | Executives have no stock ownership requirements; directors guided by 5× cash retainer; executives subject to 1-year post-vesting hold for awards granted on/after 3/31/2022 . |
| Outstanding Equity Awards (O’Neil, at 12/31/2024) | Grant Date | Type | Units Outstanding | Vesting Terms |
|---|---|---|---|---|
| 6/13/2022 | RSU | 25,773 | 25% per year over 4 years; settles in shares . | |
| 4/3/2023 | RSU | 7,597 | 1/3 on first anniversary; remaining 1/3 in years 2 and 3 . | |
| 3/29/2024 | RSU | 12,437 | Equal tranches over 3 years . | |
| 3/31/2022 | PRSU | 26,188 | Multi-period TSR; assumes max for disclosure; 3-year cliff . | |
| 4/3/2023 | PRSU | 5,698 | Multi-period TSR; first period earned 0%; assumes threshold for disclosure . | |
| 3/29/2024 | PRSU | 24,876 | Multi-period TSR; assumes max for disclosure . |
| 2024 Vesting Activity (realized value) | Shares Vested | Value Realized ($) |
|---|---|---|
| Stock Awards Vested (2024) | 25,865 | $643,785 (at vest dates) |
Employment Terms
- Start date and role: Executive Vice President and Chief Financial Officer since June 13, 2022 .
- Clawback: Dodd-Frank compliant incentive compensation clawback policy adopted November 10, 2023 .
- Restrictive covenants: All NEOs executed IP and non-disclosure; non-compete covenants tied to 2020 special cash awards applied to other NEOs, not specifically to O’Neil .
- Severance: If terminated without cause or resigns for good reason within first four years of employment, entitled to any unpaid cash sign-on bonuses, unvested sign-on RSUs, and Severance Plan benefits; Severance Plan provides lump sum equal to 18× monthly base salary plus up to 18 months subsidized COBRA .
- Change-in-control: Double-trigger; CIC Plan provides lump sum equal to 24× monthly base salary plus prorated AIP target and up to 24 months subsidized COBRA, if qualifying termination within 12 months post-CIC .
- Equity acceleration: Upon CIC, measurement periods deemed at target; if terminated without cause or resigns for good reason within 12 months post-CIC, awards vest at target .
- Stock transactions policy: Prohibits hedging, short-selling, pledging, margin accounts, and derivative trading in company stock .
| Potential Payments (as of 12/31/2024 event) | Good Reason | Involuntary Not for Cause | CIC with Qualifying Termination | Disability | Death | Retirement |
|---|---|---|---|---|---|---|
| Sean B. O’Neil | $1,766,489 | $2,362,093 | $4,069,216 | $1,156,320 | $1,981,320 | $814,320 |
Performance & Track Record
- 2024 business results: Delivered $33 million full-year net income (highest since 2013), $4.13 diluted EPS, and 8% ROE, while adding $86B servicing UPB and improving book value per share to $56 despite a -$5/share restructuring impact .
- CFO accomplishments: Led corporate debt restructuring and asset-backed financing to reduce interest/warehouse expense, improve liquidity and simplify the balance sheet; executed sale of MAV JV interest and acquisition of reverse mortgage assets; advanced IR engagement with investors, analysts, and rating agencies .
Compensation Structure Analysis
- Pay mix: For non-CEO NEOs, 32% salary, 32% AIP, and 36% LTIP target value; significant portion directly tied to TSR and profitability metrics, reinforcing pay-for-performance .
- No tax gross-ups, no option repricing, and no single-trigger LTIP vesting; 200% cap on AIP payouts; one-year share-holding post-vesting since 3/31/2022 enhances alignment and mitigates immediate selling pressure .
- Shareholder support: 2024 Say-on-Pay approval 86.5% reflects broad support for program design linking pay to TSR, net income, ROE, operating efficiency, and service excellence .
Equity Ownership & Alignment
- Skin-in-the-game: CFO beneficially owns 30,965 shares (<1%); total unvested units 99,052 with illustrative equity value 375–583% of annual target cash at 3/31/2025 prices vs fully diluted book value, emphasizing long-term equity alignment .
- Pledging/hedging: Prohibited by Insider Trading Prevention Policy; no pledged shares reported for NEOs .
- Ownership guidelines: No formal executive ownership minimums; 1-year post-vesting hold requirement elevates alignment and reduces short-term selling pressure .
Investment Implications
- Alignment: High variable pay linked to TSR and profitability plus mandatory holding periods supports investor alignment and reduces near-term selling pressure from vesting .
- Retention risk: Double-trigger CIC vesting and meaningful severance benefits (24× monthly base, prorated AIP under CIC) are retention-positive; sign-on components within first four years further stabilize tenure .
- Execution signal: 2024 over-target AIP outcome (164% of target) and successful balance sheet actions under O’Neil suggest strong execution capability; continued monitoring of Form 4 activity advisable for incremental trading signals (policy restricts hedging/pledging) .
- Governance quality: Clawback policy in place; no tax gross-ups, no option repricing, and annual Say-on-Pay support (86.5%) collectively reduce governance risk perceptions .