Business Context and Reporting Period
This Form 8-K, dated April 6, 2026, reports the approval of the 2026 Executive Compensation Plan by the Board of Directors of Cherry Hill Mortgage Investment Corporation (CHMI). The plan is effective retroactively to January 1, 2026, following the company's transition to an internal management structure in November 2024.
Key Financial Metrics
The filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on executive compensation structures and potential payout values.
Material Changes
The primary material change is the implementation of a new performance-based pay structure for executive officers, replacing previous arrangements. The plan was designed to align executive pay with the company's internal management model and benchmark against a peer group of public real estate investment trusts.
Guidance, Outlook, and Management Commentary
Management commentary indicates a strategic shift to ensure the mix of fixed and variable pay is appropriate for an internally managed company. The compensation plan includes three components: base salary, a Short-Term Incentive Program (STIP), and a Long-Term Incentive Program (LTIP).
- Base Salaries (2026): Jay Lown (CEO) at $900,000; Julian Evans (CIO) at $550,000; Apeksha Patel (CFO) at $400,000.
- STIP Metrics: 70% tied to company financial performance (50% EAD ROE, 50% share price to tangible book value relative to peers) and 30% to individual goals.
- LTIP Structure: Rolling three-year tranches. 50% is time-based (vesting over three years), and 50% is performance-based (50% relative Total Stockholder Return, 50% absolute Total Stockholder Return).
Total Compensation Opportunity (Target Level):
- Jay Lown: $2,160,000
- Julian Evans: $1,375,000
- Apeksha Patel: $1,000,000
Investor Verification Checklist
- Verify the specific EAD ROE and share price to tangible book value thresholds required to trigger STIP payouts.
- Confirm the composition of the "performance peer group" used for relative Total Stockholder Return calculations.
- Review the vesting schedule details for the time-based LTIP component to understand dilution timing.
- Assess the impact of the transition to internal management on overall operating expenses compared to the prior external management model.