$5 million bonus for Anywhere CEO has ties to lawsuits
Ryan Schneider is being rewarded for his work in landing a settlement in commissions cases and delivering savings in a challenging year for real estate.
Key points:
- Anywhere’s settlement in the buyer commission class-action lawsuits is still pending final approval in court.
- The board of directors also cited Schneider’s cost-cutting and debt-reduction efforts.
- Schneider could receive similar bonuses in 2024 and 2025 if certain performance metrics are met.
Anywhere Real Estate CEO Ryan Schneider is receiving a substantial bonus for his work in getting a settlement in the commissions lawsuits and navigating the company through a tough real estate environment.
Schneider will receive a $5 million cash bonus in 2023 that was approved by the Anywhere's board of directors, according to a SEC filing that was posted the day before Thanksgiving. In the filing, the board noted that reaching a settlement in the buyer commission lawsuits was key to "removing enormous litigation uncertainties and burdens for the company."
"The company's settlement, subject to final court approval, will bring certainty, free up management time and attention, eliminate the cost of ongoing litigation, including trials and appeals, and eliminate the downside risks associated with significant damage awards," according to the filing.
The board of directors also cited Schneider's handling of the company itself, noting that Anywhere is on track to post a cost savings of $200 million in 2023 and a reduction of about $280 million in debt in the third quarter.
The filing also noted that Schneider could receive similar $5 million bonuses in 2024 and 2025 if certain criteria related to cost savings and financial performance are met.
Anywhere was the first company to reach an agreement in the class-action lawsuits, which is still awaiting final approval in court. The settlement is to pay $83.5 million in damages as well as make significant rule changes to how it handles buyer agent compensation. RE/MAX also reached a settlement, agreeing to pay $55 million in damages.
Following the Burnett/Sitzer verdict on Oct. 31 that calls on the National Association of Realtors, HomeServices of America and Keller Williams to pay nearly $1.8 billion in damages, a slew of other court cases have popped up, creating a situation where many major brokerages will be tied up in court litigation over buyer agent compensation for years to come.