Business Context and Reporting Period
This Form 8-K Current Report was filed by Redwood Trust, Inc. on May 10, 2013, covering the date of the earliest event reported on May 7, 2013. The filing pertains to the appointment of a new principal accounting officer.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on executive compensation and appointment details.
Material Changes
On May 7, 2013, Collin Cochrane was appointed as the principal accounting officer of Redwood Trust, Inc. Mr. Cochrane had previously commenced employment with the company as Controller and Managing Director on March 18, 2013. Prior to joining Redwood Trust, he served as the chief accounting officer and controller for iStar Financial Inc. from 2001 through mid-March 2013.
Management Commentary and Compensation Terms
In connection with his appointment, the following compensation terms were agreed upon for Mr. Cochrane:
- Base Salary: $250,000 annual base salary for 2013.
- Cash Incentive: A year-end 2013 cash incentive award of $187,500.
- Equity Award: Deferred stock units with an equivalent market value of $200,000, vesting over a four-year period.
- Relocation: A relocation expense allowance of $100,000.
- Future Equity: Eligibility for a discretionary 2013 year-end equity award of deferred stock units.
The filing contains no specific guidance, outlook, or discussion of risks and contingencies beyond the standard appointment disclosure.
Investor Verification Points
- Verify the effective date of Mr. Cochrane's role as principal accounting officer (May 7, 2013) versus his start date as Controller (March 18, 2013).
- Confirm the vesting schedule and terms of the $200,000 deferred stock unit award under the 2002 Incentive Plan.
- Review the company's total executive compensation structure to assess the impact of the $537,500 total initial compensation package (salary, cash incentive, equity, and relocation).