Form 4: Altisource CFO Michelle Esterman Modifies Compensation, Receives Stock Grant

Michelle Esterman, CFO of Altisource Portfolio Solutions S.A., received 22,738 shares of common stock as part of a temporary compensation modification.

Summary

• Michelle Esterman, the CFO of Altisource Portfolio Solutions S.A., has modified her compensation as part of a company-wide cost reduction plan.
• She volunteered to replace up to 30% of her base compensation with Altisource common stock.
• For the period ended June 30, 2024, Ms. Esterman received 22,738 shares of ASPS common stock, which vested immediately, at a cost of $1.42 per share for compensation replacement calculation purposes.
• 5,536 of these shares were used to cover tax withholding, resulting in a net issuance of 17,202 shares to Ms. Esterman.
• The cost per share used to determine the tax withholding was $1.27, based on the opening price of ASPS common stock on the grant date.
• Following these transactions, Ms. Esterman beneficially owns 160,243 shares of Altisource common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The CFO is taking a pay cut in exchange for stock, which shows commitment. However, it also suggests the company is trying to reduce costs.

Positives

• Ms. Esterman's voluntary compensation modification demonstrates commitment to the company's cost reduction plan.
• The stock grant aligns her interests with those of shareholders.

Future Outlook

The compensation adjustment will continue until either Ms. Esterman or the company terminates or reduces it with written notice.

Management Comments

• Ms. Esterman has volunteered to temporarily modify her compensation by offering the Company the option to replace up to 30% of her base compensation with a grant of unrestricted ASPS common stock.

Industry Context

Executive compensation adjustments, particularly involving stock grants, are common in corporate settings as a way to align management interests with shareholder value and manage cash flow, especially during cost reduction initiatives.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, particularly for executive roles.
• The percentage of compensation replaced with stock (up to 30% in this case) is within a reasonable range compared to industry benchmarks for similar positions.
• Companies like Black Knight Financial Services (BKFS) and CoreLogic (CLGX) also utilize stock grants as part of their executive compensation packages.

Stakeholder Impact

• Shareholders may view the compensation modification positively as it aligns management interests with cost reduction efforts.
• Employees may be concerned about potential broader cost-cutting measures.

Key Dates