Form 4: Redwood Trust CLO Converts Deferred Stock Units

Redwood Trust's Chief Legal Officer, Andrew P. Stone, converted deferred stock units into common stock and settled tax obligations.

Summary

• Andrew P. Stone, Chief Legal Officer of Redwood Trust Inc. (RWT), converted 13,131 Deferred Stock Units (DSUs) into common stock.
• The conversion occurred on December 24, 2025, with the common stock valued at $5.49 per share on that date.
• An additional 15,321 DSUs were disposed of to cover tax liabilities related to the conversion, as approved by the Compensation Committee.
• Following these transactions, Andrew P. Stone beneficially owns 170,600 shares of Redwood Trust common stock and no longer holds DSUs from this specific grant.
• The original grant date fair market value of the Deferred Stock Units was $13.18 per unit.

Sentiment

Score: 6

Explanation: The transaction is a routine conversion of deferred stock units into common stock, with a portion withheld for taxes. The increase in direct common stock ownership by a key executive is generally viewed as a minor positive for shareholder alignment.

Positives

• The Chief Legal Officer increased direct ownership of common stock by 13,131 shares, demonstrating continued alignment with shareholder interests.

Negatives

• A portion of the deferred stock units (15,321 units) was disposed of to cover tax liabilities, which is a common but still a reduction in potential direct ownership.

Future Outlook

NA

Industry Context

This is a routine insider transaction related to executive compensation, common across publicly traded companies, and does not indicate specific industry trends.

Related Party Transactions

• Conversion of Deferred Stock Units to common stock and tax withholding under the Executive Deferred Compensation Plan for Chief Legal Officer Andrew P. Stone.

Stakeholder Impact

• Shareholders: Increased alignment with management due to direct stock ownership by a key executive.
• Employees: The transaction reflects the execution of a standard executive deferred compensation plan.

Key Dates

Recommendation

This Form 4 details a routine conversion of deferred stock units and associated tax withholding by a key executive. While the increase in direct common stock ownership is a minor positive for alignment, the transaction itself does not provide new fundamental information to warrant a change in investment recommendation.

Keywords

RWT, Redwood Trust, Form 4, Insider Transaction, Deferred Stock Units, Common Stock, Executive Compensation, Andrew P. Stone