Form 4: Redwood Trust CFO Converts Deferred Stock Units

Redwood Trust's Chief Financial Officer, Brooke Carillo, converted deferred stock units into common stock and had shares withheld for tax obligations on December 24, 2025.

Summary

• Brooke Carillo, Chief Financial Officer of Redwood Trust Inc. (RWT), engaged in transactions involving common stock and deferred stock units on December 24, 2025.
• Carillo acquired 24,073 shares of common stock through the conversion of deferred stock units under the Executive Deferred Compensation Plan.
• The common stock was valued at $5.49 per share on the transaction date for the purpose of distribution and/or conversion.
• Following these transactions, Carillo beneficially owns 95,142 shares of common stock.
• A total of 28,089 deferred stock units were disposed of due to a Compensation Committee approved withholding for tax liability related to the distribution/conversion.
• An additional 24,073 deferred stock units were disposed of through conversion to common stock.
• The fair value of the deferred stock units, based on the original grant date, was $13.18 per unit.
• No other deferred stock units with the same original grant date are beneficially owned after these transactions.

Sentiment

Score: 6

Explanation: The transaction represents a routine conversion of deferred stock units and tax withholding, which is a neutral event. The net increase in direct common stock ownership by a key executive is a minor positive for management alignment.

Positives

• The Chief Financial Officer increased direct beneficial ownership of common stock by 24,073 shares, signaling continued alignment with shareholder interests.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance.

Industry Context

This Form 4 filing details a routine insider transaction related to executive compensation, specifically the conversion of deferred stock units and associated tax withholding. It does not provide broader insights into industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: The increase in direct common stock ownership by the CFO may be viewed as a positive signal of management's vested interest in the company's performance.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction involving the conversion of deferred stock units and tax withholding. While the CFO's direct common stock ownership increased, this event is a standard part of executive compensation and does not provide new fundamental information to warrant a change in investment recommendation. The stock's performance will continue to depend on broader company fundamentals and market conditions.

Keywords

RWT, Redwood Trust, Form 4, Insider Transaction, Stock Conversion, Deferred Stock Units, Executive Compensation, CFO