Business Context and Reporting Period
This Form 8-K is a current report filed by Redwood Trust, Inc. on January 25, 2010. The filing discloses the approval of 2009 compensatory arrangements for the Company's executive officers by the Compensation Committee of the Board of Directors during meetings held on December 9, 2009, and January 25, 2010.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on executive compensation details.
| Executive Officer | 2009 Annual Bonus (Cash) | 2009 Annual Bonus (Deferred Stock Units) | 2009 Long-Term Equity Grant (Deferred Stock Units) |
|---|---|---|---|
| George Bull (Chairman & CEO) | $2,100,000 | $881,000 | $2,500,000 |
| Martin Hughes (President, Co-COO, CFO) | $1,500,000 | $325,000 | $1,100,000 |
| Brett Nicholas (Co-COO, CIO) | $1,500,000 | $325,000 | $1,100,000 |
| Harold Zagunis (Chief Risk Officer) | $737,000 | N/A | $400,000 |
| Christopher Abate (Controller) | $130,000 | N/A | $85,000 |
Material Changes and Unusual Items
The filing notes that the determination of annual bonuses based on the Company's financial performance utilized the previously disclosed performance bonus formula. However, this formula was adjusted on a one-time basis to reflect certain accounting adjustments that relate to and will impact the Company's 2009 reported financial results. The filing does not specify the nature or magnitude of these accounting adjustments.
Guidance, Outlook, and Management Commentary
Further disclosure regarding these compensation matters is expected in the Compensation Discussion and Analysis section of the Company's annual proxy statement to be filed prior to the 2010 annual shareholders' meeting. The bonus payments and grants are scheduled to be paid or granted on February 25, 2010, subject to the completion of the audit of the Company's 2009 financial statements. Long-term equity grants are subject to a pro-rata vesting schedule over a four-year period.
Key Facts for Investor Verification
- Verify the specific nature of the "accounting adjustments" mentioned that required a one-time adjustment to the 2009 performance bonus formula.
- Confirm the final payment date of February 25, 2010, contingent upon the completion of the 2009 financial statement audit.
- Review the upcoming 2010 annual proxy statement for the full Compensation Discussion and Analysis.
- Note that the filing does not provide current financial performance data (revenue, earnings, or liquidity) for the period.