Form 4: Redwood Trust Director Converts Deferred Stock Units to Common Stock

Faith A. Schwartz, a Director at Redwood Trust Inc., converted deferred stock units into common stock as part of the company's Executive Deferred Compensation Plan.

Summary

• On May 27, 2025, Faith A. Schwartz, a Director of Redwood Trust Inc. (RWT), acquired 1,203 shares of common stock through the conversion of Deferred Stock Units (DSUs).
• This conversion was executed at a value of $5.44 per share, representing the fair market value of Redwood Trust common stock on the transaction date.
• Following this transaction, Ms. Schwartz beneficially owns 19,041.17 shares of common stock directly.
• Additionally, on the same date, Ms. Schwartz acquired 12,781 shares of common stock through the conversion of another set of DSUs, also at a value of $5.44 per share.
• After this second conversion, Ms. Schwartz's direct beneficial ownership increased to 31,822.17 shares of common stock.
• The converted DSUs had original grant date fair market values of $12.46 for the 1,203 units and $9.78 for the 12,781 units.
• These transactions are part of the Executive Deferred Compensation Plan, where DSUs are subject to mandatory holding periods and are delivered to the participant according to the plan's terms and conditions.

Sentiment

Score: 5

Explanation: The transaction is a routine conversion of deferred stock units into common stock as part of an executive compensation plan, which is a pre-scheduled event and does not inherently indicate positive or negative sentiment regarding the company's future performance.

Positives

• The conversion of Deferred Stock Units into common stock increases the director's direct equity ownership in Redwood Trust, further aligning their interests with those of common shareholders.
• This transaction is a pre-planned event under an executive compensation plan, indicating a structured approach to executive incentives and share distribution.

Future Outlook

na

Industry Context

na

Related Party Transactions

• The conversion of Deferred Stock Units to common stock is part of the Executive Deferred Compensation Plan, which is a pre-existing compensation arrangement between the company and its director.

Stakeholder Impact

• Shareholders: The conversion of deferred stock units into common stock by a director aligns the director's interests with those of shareholders by increasing their direct equity ownership.

Next Steps

• Deferred Stock Units are subject to a mandatory holding period and will be delivered to the Participant according to the terms and conditions of the Executive Deferred Compensation Plan.

Key Dates

Keywords

Redwood Trust, RWT, SEC Form 4, Insider Transaction, Deferred Stock Units, Common Stock, Executive Compensation, Director Stock Ownership