Ryan Schneider, CEO of Anywhere Real Estate, has a lot to be thankful for this Thanksgiving.
Mr. Schneider led parent companies The Corcoran Group, Coldwell Banker, Century 21 and Sotheby’s International Realty in offering settlements in two landmark lawsuits over brokerage fees. The company reported its second consecutive quarter of profit last month.
Anywhere’s board of directors has rewarded him with a $5 million cash bonus, according to a filing with the Securities and Exchange Commission. As of 2022, Mr. Schneider’s base salary is $1 million, which does not include his stock or other compensation.
The board cited Mr. Schneider’s “exemplary leadership in today’s extremely difficult residential resale market” and his leadership in “removing significant litigation uncertainty and burden” for Anywhere. The company also pointed to Schneider’s role in reducing debt by approximately $280 million in the third quarter and reducing costs over the past several years.
Anywhere initially resolved all claims in the first antitrust case scheduled for trial.
In Sitzer/Barnett v. National Association of Realtors, a Kansas City jury found that NAR, Keller Williams, and HomeServices of America used an anticompetitive system that forced home sellers to pay high buyer agency fees. He found that he was responsible for coercion. The jury awarded $1.8 billion in damages, but that amount could triple to more than $5 billion.
The Mehl v. NAR case is scheduled to go to trial next year in Illinois, and damages could exceed $40 billion.
Anywhere, formerly known as Realogy, agreed to settle both lawsuits for $83.5 million in September. This week, a judge gave preliminary approval to the settlement, and the same day Anywhere’s board announced Mr. Schneider’s bonus. Final approval is expected next year.
Since the Sitzer/Barnett decision, similar cases have emerged across the country, including in Texas and South Carolina.
The settlement also relieves Anywhere of the time and costs associated with litigation, Anywhere said in an SEC filing.
As part of the settlement, Anywhere agreed to require agents to include the listing broker’s required compensation on active listings, and to ensure that company-owned brokers and their agents do not accept compensation offers based on compensation offers unless requested by the customer. Prohibit classification of listings. Anywhere also prohibits these intermediaries and their agents from claiming that their buyer representation services are free.
Mr. Schneider may also receive $5 million in similar performance-based compensation in 2024 and 2025.