Form 4: Altisource Portfolio Solutions CEO Receives Stock Grant as Part of Compensation Adjustment

William B. Shepro, Chairman and CEO of Altisource Portfolio Solutions, received 33,941 shares of common stock as part of a temporary compensation adjustment, with a portion of the shares used to cover tax withholdings.

Summary

• William B. Shepro, Chairman and CEO of Altisource Portfolio Solutions, received 33,941 shares of common stock on February 4, 2025, as part of a previously disclosed company-wide cost reduction plan.
• This plan allowed Mr. Shepro to temporarily modify his compensation by offering the company the option to replace up to 30% of his base compensation with a grant of unrestricted ASPS common stock.
• The adjustment was terminated on February 1, 2025, upon written notice from Mr. Shepro.
• Of the 33,941 shares granted, 16,006 shares were used to cover tax withholdings, resulting in a net issuance of 17,935 shares to Mr. Shepro.
• Following the transaction, Mr. Shepro beneficially owns 956,975 shares indirectly through the William B. Shepro Revocable Trust and 940,969 shares directly.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The CEO taking stock in lieu of cash compensation signals confidence and alignment with shareholders, but it's also part of a cost-cutting measure, which could be interpreted as a sign of financial pressure.

Positives

• Mr. Shepro's willingness to modify his compensation demonstrates a commitment to the company's cost reduction efforts.
• The stock grant aligns Mr. Shepro's interests with those of the shareholders.

Management Comments

• As part of a previously disclosed company-wide cost reduction plan, Mr. Shepro volunteered to temporarily modify his compensation by offering the Company the option to replace up to 30% of his base compensation with a grant of unrestricted ASPS common stock.

Industry Context

Executive compensation adjustments, particularly those involving stock grants, are common in the industry to align management interests with shareholder value and manage cash flow.

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%) is within a reasonable range compared to industry peers.
• Companies like Black Knight and CoreLogic also utilize stock options and grants as part of their executive compensation packages.

Stakeholder Impact

• Shareholders may view the CEO's acceptance of stock in lieu of cash compensation positively, as it aligns interests and reduces immediate cash outflow.
• Employees may be affected by the broader cost reduction plan, but the CEO's participation could be seen as a positive sign of shared sacrifice.

Key Dates