Redwood Trust (NYSE:RWT) Announces Year-End Compensation Awards for Executives

Redwood Trust, Inc. (NYSE:RWT) disclosed in a recent SEC filing that its Compensation Committee, during a meeting on December 12, 2024, approved various compensation matters for the company’s CEO and certain other named executives. These approvals include 2024 year-end long-term equity-based incentive awards for certain executives under the Company’s Second Amended and Restated 2014 Incentive Award Plan.

The approved awards consist of Deferred Stock Units (DSUs), cash-settled Restricted Stock Units (csRSUs), and Performance Stock Units (PSUs). The DSUs and csRSUs are set to vest over a four-year period, with varying vesting schedules and conditions based on termination events. The PSUs are performance-based equity awards with vesting contingent on achieving specific performance goals over a three-year measurement period.

Redwood Trust detailed the specific terms and conditions related to the equity awards granted, including vesting schedules, dividend equivalent rights, and accelerated vesting provisions in case of specific termination events. The Form 8-K filing also included the grant date fair value of each type of award and the specific grant values allocated to named executive officers within the company.

Additionally, the Compensation Committee made determinations on 2025 base salaries and target annual bonuses for the named executives. Base salaries and target annual bonuses were outlined for the CEO, President, CFO, Chief Legal Officer, and Chief Human Resources Officer, based on pre-established performance goals.

The company provided detailed information regarding the definitive terms of the awards for each type of equity compensation, including the grant agreements and the 2014 Incentive Plan. Redwood Trust aims to align executive compensation with performance objectives while ensuring executives are incentivized for delivering value to the company and its shareholders.

This disclosure of executive compensation awards and determinations for the upcoming year provides transparency regarding Redwood Trust’s efforts to tie executive remuneration closely to the company’s performance metrics and strategic objectives. Investors and stakeholders may closely monitor these developments as a reflection of the company’s commitment to sound governance practices and aligning executive incentives with long-term shareholder value.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Redwood Trust’s 8K filing here.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.