Navient Corporation (NASDAQ:NAVI), currently trading at $15.24 and showing a strong 20.5% return over the past six months, disclosed Monday it amended its compensation agreement with Chief Executive Officer and President David L. Yowan, according to a statement based on a Securities and Exchange Commission filing. According to InvestingPro analysis, the company has maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns.
Effective July 1, Mr. Yowan's annual base salary increased to $1 million. He will remain eligible for an annual bonus under Navient's Management Incentive Plan, with a 2025 target bonus set at 150% of his average annual base salary during the year.
The amended agreement also grants Mr. Yowan restricted stock units (RSUs) and performance-based restricted stock units (PSUs). The RSU award is valued at $1.6 million, calculated based on the closing price of Navient's common stock on July 7, 2025. Fifty percent of the RSUs will vest if Mr. Yowan stays with the company through the first anniversary of the grant date, and the remaining half vests if he remains through the eighteen-month anniversary. If Mr. Yowan's employment ends without cause or for good reason, the RSUs may vest in whole or in part. Each vested RSU will be settled in cash equal to the fair market value of a share on the vesting date.
The PSU award is valued at $2.4 million and will vest based on both tenure and performance criteria. The service condition is met if Mr. Yowan remains employed for one year (50% vesting) and eighteen months (remaining 50%), or if employment ends without cause or for good reason. The performance condition covers four goals: 45% of the PSUs are tied to annual legacy expense targets for 2025, 2026, and 2027, and 55% relate to total shareholder return versus peers over the three-year period. Payouts for the performance goals range from 0% to 150% of the PSUs. The PSU award will be settled in shares of common stock.
All other terms in Mr. Yowan's previous agreements remain unchanged. The information in this article is based on a press release statement and the company's SEC filing.
In other recent news, Navient Corporation reported mixed results for the first quarter of 2025, with earnings surpassing estimates but revenue falling short. The company posted adjusted earnings per share of $0.25, exceeding the analyst consensus of $0.22. However, revenue was reported at $156 million, below the projected $179 million and significantly down from $273 million in the same quarter last year. Navient's net loss, according to GAAP results, was $2 million, or $0.02 per diluted share, influenced by a $4 million reduction in pre-tax income due to regulatory and restructuring expenses. The company originated $508 million in private education loans, with refinance loans more than doubling compared to the previous year. Navient's federal education loans segment saw net income drop to $24 million from $40 million year-over-year, largely due to lower interest income. In February, Navient completed the sale of its remaining government services business for $44 million, marking its exit from the business processing segment. Additionally, the company repurchased $35 million of common shares and distributed $16 million in dividends during the quarter.