Real Brokerage has been proud of a huge growth in recent years, as it rises to the fifth largest residential company in the country. But recently, the company’s financial deposits showed some patterns in the background.
Former financial manager Michel Risler filed a lawsuit against the company earlier this month on the pretext of discrimination in pregnancy. Risler, who claims that the company prompted her to go out three months after its return from the maternity leave, and alluded to broader operational issues within the company, claiming that it was also expelled to challenge “doubtful and possibly illegal behavior” for the company.
The company’s share price was on a one -year chip, and generous shares of agents have reduced stocks to the inventory beyond its other trading peers.
In the past three months, CEO Tamir Polij sold more than $ 3.3 million in stocks. The largest Insight Insight Partners, who announced a large plan for July, instead, the ship was abandoned in May.
“Each of these things alone is something that happens in the normal track of commercial operations,” said Mike Deleberte, an industry analyst. But they are gathered, they “attract one’s attention.”
At first glance, the company’s higher numbers improved only in recent years.
Despite its last slide, the company’s shares are still trading more than four times the first public price. Closed Wednesday at $ 4.29. This was the fifth largest medium in size last year, with more than $ 42 billion in closed deals, which doubled its size from 2023 after it was almost doubled in the previous year of 2022.
But before the Risler bomb suit, the company began to show signs of cracking.
The mediation of the aesthetics erupted in explosive growth against the background of its generous splits, the stock package and the arrangement of revenue sharing, similar to what the Exp Realty offers. The real brokerage agents receive a division of 85/15 until they pass by $ 12,000 to real – after that, they keep 100 percent of their commissions, and they pay a small transaction fee for each deal (the difference receives the maximum minimum clarity).
Agents can also obtain a 5 percent revenue share created by production agents that recruit them to a certain point, which comes out of the commission division in Real. The additional revenue share can come from production agents recruited by the first recruits.
The agents also draw the agents to buy in the company, and provide a number of stock incentives programs for agents. Agents can put a portion of their commission to buy real shares, which are encouraged by mediation by granting the dealers’ reward shares when doing this, receiving shares to employ other agents, strike the maximum operation or receive the company’s prizes.
These aggressive incentives are not without cost.
In 2024, mediation stock was reduced by 10 percent, according to the analysis of Delprete shared with The real deal. He said this was doubled near the average annual mitigation of seven other competitors, including Exp, anywhere in the real estate and compass.
“The other part made [equity incentives] “You must buy stocks as well, work widely, you need to purchase the shares,” Delberte said.
The real spending was about 36 million dollars in 2024 – approximately $ 49 million, which was born in the free cash flow – the purchase of shares, according to its public files.
CEO Tamir Polit said in an interview that re -purchases “must completely compensate for all possible mitigation and we want to reach this point, and not in the distant future.”
In 2024, the company realized more than $ 52 million of compensation to the shares paid to agents and employees through its compensation plan and the last of nearly 10 million dollars in the restricted shares granted through incentive plans.
The company said in a statement, “The opportunity to ownership of shares is an essential part of the proposal of the value of our agent,” the company said in a statement.
Polij also indicated that the company has reduced its stock incentives since 2020 and that investors told him that they were “comfortable to reduce one low numbers as long as the company is growing very quickly.”
He said: “In the long run, we will continue to reduce our stock incentives program so that the mitigation becomes less than it is today.”
The company appears to deal with these concerns in a press statement on May 20 when it announced a program to purchase $ 150 million of shares. But the version does not give any indication of this program to enter into force, and the company’s cash balances decrease to this number, with approximately 35 million dollars in cash and cash -like investments in its public budget to end the first quarter.
Poleg said that the plan “provides us with flexibility for implementation over several years,” and pointed to the re -purchase of/MAX with a value of $ 100 million from 2022, which is still in progress.
To calm the investor concerns and employee fears, the company’s executive officials will usually purchase more shares as a good -hand offer. Michael Lieboutz, CEO of Douglas Eliman, bought $ 1.8 million in the company’s shares at his height to replace CEO Howard Lorbert after his sudden release in a loud period.
But Poleg, CEO and founder, was heading in the opposite direction. Since March 21, POLEG has sold more than 735,000 shares for approximately $ 3.3 million. The sale of part of the 10b5-1 program was not, which allows executives to avoid trading on internal information.
Nearly 85 percent of the POLEG salary of $ 4 million in the form of the company’s shares, indicated that given the declining track of the share, its 10b5-1 plan, which leads to sales at the lowest price per share, has not been hit.
“I have more shares today compared to my place when we took the public company,” he said.
Poleg was not the only seller. In May, the largest Insight Insight Bartners in the company sold 3.7 million shares, which represents nearly 2 percent of the total suspended shares of the company and 10 percent of Insight’s possessions in real mediation.
Insight Partners entered the 10b5-1 plan-the plan was only prepared for sale in mid-July. The sale of May raised the “early warning report”, which occurs when the company sells before its original date 10B5-1.
Insight partners did not respond to a comment for comment.
Risler’s suit also raises questions about the company’s financial behavior.
Risler claims that in June 2024, it issued a report to Poleg that the real brokerage company has problems related to compliance, accountability and financing for its newly launched products. She wrote that her report said that the company was at risk of repeated payments, accurate accounting, tax compliance and organizational exposure.
According to Rsrler, the maternity leave entered in August, “You are seriously worried about the company’s future, including compliance and legal exposure caused by the decisions of CEO Polij to premature launch products, not simply succeeded,” she said.
Risler wrote that “at least some of these issues were addressed” during her vacation, but added that upon its return in January, the company continued to ignore risk reports about the company’s increasingly problems. “
An example of a failed product, Reseler referred to the company’s real wallet, a banking and lending product that allows agents to withdraw money from their accounts before their committees are clear. The real deal He previously reported the difficulties faced by companies and agents in an attempt to move in the progress of the commission.
Risler claimed that the company knew that the product did not succeed, claiming that he did not comply with basic legal agreements, and had no compliance with the back office or financial infrastructure and was not functional in Canada.
After launching the product, she claimed that she had issues such as repeated commission, loan expenses, the inability to remember money, and the obstruction periods that prevented commission payments from treatment.
Risler also claimed that the agents who withdrawn the money from the product did not pay more than 20 percent of the time. She claimed that despite the issues, POLEG expanded the program by seeking money from agents and issuing loans against them, partially driven at the price of decreased stock price and a troubled business model.
POLEG said the winning balance was “unimportant” for the company’s financial situation, and he refused more to comment on the lawsuit.
The company said in a statement, “The work of Mrs. Rissler with the company was terminated based on the company’s opinion that it participated in procedures that violate the company’s policies,” the company said in a statement.
The stock has decreased more than 5 percent since Risler’s suit.
This article was updated with a statement from the company by ending the Risler.
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