Cherry Hill Mortgage (NYSE: CHMI) adopts 2026 incentive-heavy executive compensation plan

Rhea-AI Filing Summary

Cherry Hill Mortgage Investment Corporation approved a new 2026 Executive Compensation Plan for its internally managed leadership team, effective January 1, 2026. The plan combines base salary, annual cash incentives, and long-term equity tied to stockholder return.

For 2026, base salaries are $900,000 for CEO Jay Lown, $550,000 for CIO Julian Evans, and $400,000 for CFO Apeksha Patel. Each executive can earn additional short-term cash bonuses ranging from 20–75% of salary at threshold to 60–75% at maximum, based on company and individual performance. Long-term incentives use rolling three-year performance periods, splitting awards 50% time-based and 50% performance-based, with total LTIP opportunities at target of $900,000 for Lown, $550,000 for Evans, and $400,000 for Patel.

8-K Event Classification

Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers

1 item

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

Key Figures

CEO base salary 2026: $900,000 CIO base salary 2026: $550,000 CFO base salary 2026: $400,000 +5 more

8 metrics

CEO base salary 2026 $900,000 Base salary for President and Chief Executive Officer Jay Lown in 2026

CIO base salary 2026 $550,000 Base salary for Chief Investment Officer Julian Evans in 2026

CFO base salary 2026 $400,000 Base salary for Chief Financial Officer Apeksha Patel in 2026

CEO STIP max bonus $540,000 Maximum 2026 short-term cash incentive for CEO at 60% of base salary

CEO LTIP target value $900,000 Target 2026–2028 LTIP award opportunity for CEO

CIO LTIP target value $550,000 Target 2026–2028 LTIP award opportunity for CIO

CFO LTIP target value $400,000 Target 2026–2028 LTIP award opportunity for CFO

CEO total max 2026 pay $2,790,000 Maximum total 2026 compensation opportunity for CEO under the plan

Key Terms

short-term incentive program, long-term incentive program, total stockholder return, performance peer group, +1 more

5 terms

short-term incentive program financial

"Under the STIP, participating executive officers are eligible to receive annual cash bonuses"

long-term incentive program financial

"The LTIP is intended to cover consecutive, rolling three-year tranches"

A long-term incentive program is a company plan that pays executives or employees rewards—often stock, options, or cash—only if the business hits performance goals over several years. It matters to investors because these payouts align managers’ interests with shareholders, encouraging decisions that boost sustained growth and share value rather than short-term gains; think of it as a multi-year bonus tied to measurable company outcomes.

total stockholder return financial

"based on the Company’s achievement of threshold, target, and maximum levels of total stockholder return"

Total stockholder return is the percentage gain or loss an investor would have experienced over a period from both changes in a stock’s price and any cash payouts such as dividends, assuming those payouts are reinvested in the stock. It matters because it shows the complete financial outcome of owning a share — like measuring both a house’s change in sale value and the rent you collected — and lets investors fairly compare performance across companies and time.

performance peer group financial

"relative to a performance peer group, and the remainder of the performance-based component"

time-based vesting financial

"time-based awards under the LTIP will vest solely based on time over a three-year period"

Time-based vesting is a schedule that gives employees or contractors ownership of granted stock or options gradually as they remain with a company, like unlocking rewards in a loyalty program the longer you stick around. For investors, it matters because it affects future share supply, management incentives and staff retention — all of which can influence company performance and dilution of existing shareholders.

Understanding 8-K Material Events →

false0001571776870-700500015717762026-04-062026-04-060001571776us-gaap:CommonStockMember2026-04-062026-04-060001571776chmi:Eight250SeriesBFixedToFloatingRateCumulativeRedeemableMember2026-04-062026-04-060001571776chmi:Eight20SeriesACumulativeRedeemablePreferredStock001ParValueMember2026-04-062026-04-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 6, 2026

CHERRY HILL MORTGAGE INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

Maryland	001-36099	46-1315605
(State or other jurisdiction of incorporation)	Commission File Number:	(IRS Employer Identification No.)

4000 Route 66, Suite 310

Tinton Falls, New Jersey 07753

(Address of principal executive offices, including zip code)

877.870.7005

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	CHMI	NYSE
8.20% Series A Cumulative Redeemable Preferred Stock, $0.01 par value	CHMI-PRA	NYSE
8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable	CHMI-PRB	NYSE

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On April 6, 2026, the Board of Directors (the “Board”) of Cherry Hill Mortgage Investment Corporation (the “Company”) approved and adopted the 2026 Executive Compensation Plan (the “Plan”) for the Company's participating executive officers, effective as of January 1, 2026. The Plan was approved by the Board based on the recommendation of the Compensation Committee. Following the Company’s transition to an internal management structure in November 2024, the Compensation Committee undertook, with assistance from Ferguson Partners, the committee’s independent compensation consultant, a comprehensive review of the Company’s executive pay practices to ensure that the mix of fixed and variable pay that is at-risk is appropriate for an internally managed company and to implement a performance-based pay structure that it believes is competitive in the market for executive talent.

The Plan consists of three components: base salary, a short-term incentive program (“STIP”) and a long-term incentive program (“LTIP”).

Base Salary

For 2026, the Board approved the following base salaries for the participating executive officers: $900,000 for Jay Lown, the Company’s President and Chief Executive Officer; $550,000 for Julian Evans, the Company’s Chief Investment Officer; and $400,000 for Apeksha Patel, the Company’s Chief Financial Officer. These salaries, along with the performance-based incentive compensation payable under the STIP and the LTIP, were benchmarked against a peer group of public real estate investment trusts with similarity to the Company in terms of asset focus and size.

STIP Opportunity (Cash Bonus)

Under the STIP, participating executive officers are eligible to receive annual cash bonuses based on the achievement of Company financial performance metrics and individual performance goals. For 2026, the annual cash incentive for each participating executive officer will be determined as follows:

• 70% based on the achievement of Company financial performance metrics, further allocated as follows:

o 50% based on the achievement of certain levels of EAD ROE, computed as (i) the Company’s earnings available for distribution to common shareholders, a non-GAAP measure, for the 2026 performance period divided by (ii) the Company’s average book value per common share across the four quarterly periods during the 2026 performance period, and

o 50% based on the achievement of certain levels of share price to tangible book value relative to that of a performance peer group, where share price is determined by calculating the average share price for the Company and each company in the performance peer group as publicly reported during the 2026 performance period, and tangible book value for the Company and each company in the performance peer group is determined by calculating the Company’s and each peer group company’s average quarterly GAAP net tangible book value per share (as publicly reported) during the 2026 performance period; and

• 30% based on the achievement of individual performance goals established by the Compensation Committee.

Awards under the STIP are expressed as a dollar amount that is a percentage of each participating executive officer’s base salary. Awards have a range of earning opportunity across three distinct levels, specifically a defined threshold, target, and maximum though linear interpolation applies to the extent performance falls between two levels, and consequently, any payouts will be calculated in a similar manner. If the Company’s actual performance does not meet the threshold requirement for each performance component of the STIP, no award will be earned for such performance component. If the Company’s actual performance for the performance period is above the maximum for a performance component, the resulting outcome is capped at the maximum level.

For 2026, threshold, target, and maximum award opportunities under the STIP for each participating executive officer are as follows:

		As a Percentage of Base Salary / Dollar Value of Opportunity
Executive		Threshold			Target			Maximum
Jay Lown			20.0%/$180,000			40.0%/$360,000			60.0%/$540,000
Julian Evans			25.0%/$137,500			50.0%/$275,000			75.0%/$412,500
Apeksha Patel			25.0%/$100,000			50.0%/$200,000			75.0%/$300,000

LTIP (Long-Term Equity Incentives)

The LTIP is intended to cover consecutive, rolling three-year tranches (36 months each) for an indefinite period.  The first fiscal year tranche under the LTIP covers the period from January 1, 2026 through December 31, 2028.  The second such tranche under the LTIP will cover the period from January 1, 2027 through December 31, 2029, and so on.  Each tranche is referred to as a separate “LTIP Performance Period.”

Awards under the LTIP are expressed as a dollar amount that is then converted to equity based on a split across time-based vesting and performance-based vesting, further calculated into units based on the grant date fair market value.  Presented below is the dollar value of LTIP award opportunities in total for the 2026 LTIP Performance Period for each participating executive officer, shown at threshold, target, and maximum payouts pending performance outcomes (on the performance-based portion of the award, as the time-based portion does not fluctuate based on performance goals).

		Dollar Value of LTIP Award Opportunity
Executive		Threshold				Target				Maximum
Jay Lown		$	675,000			$	900,000			$	1,350,000
Julian Evans		$	412,500			$	550,000			$	825,000
Apeksha Patel		$	300,000			$	400,000			$	600,000

The total opportunity under the LTIP is then subdivided into a time-based portion (50%), which is based on target, is fixed in nature and then converted into a number of shares/units that will be issued in 2026. The dollar value of the time-based component under the LTIP, at target, is as follows: Jay Lown, $450,000; Julian Evan, $275,000; and Apeksha Patel, $200,000. Time-based awards under the LTIP will vest solely based on time over a three-year period (one-third annually), commencing on the first anniversary of date of grant of the time-based equity award.

The remainder of the award under the LTIP is set forth in the table below, with a spectrum of earnings opportunity that may become earned based on future performance upon conclusion of the three-year performance period.

		Dollar Value of Performance-Based Component of LTIP Award Opportunity
Executive		Threshold 0.5x				Target 1.0x				Maximum 2.0x
Jay Lown		$	225,000			$	450,000			$	900,000
Julian Evans		$	137,500			$	275,000			$	550,000
Apeksha Patel		$	100,000			$	200,000			$	400,000

Fifty percent of the performance-based component of the LTIP award opportunity will be earned based on the Company’s achievement of threshold, target, and maximum levels of total stockholder return relative to a performance peer group, and the remainder of the performance-based component of the LTIP award opportunity will be earned based on the Company’s achievement of threshold, target, and maximum levels of absolute total stockholder return. Earned awards under the performance-based component of the LTIP award opportunity will vest upon the conclusion of the performance period and certification by the Compensation Committee.

If performance falls between two levels, linear interpolation will apply.  In the event that the Company’s actual performance does not meet the threshold requirement, no performance-based awards will be earned for such performance requirement.  If the Company’s actual performance for the performance period is above the maximum for a performance requirement, the number of earned awards will be the maximum number for the participating executive officer’s performance-based LTIP award opportunity.

Participating executive officers will not be entitled to the receipt of dividends or other distributions with respect to performance-based equity awards unless and until they are earned. If performance is achieved and awards are earned, each participating executive officer will be entitled to the dividends and distributions that would have been paid had the number of earned awards been issued at the beginning of the performance period, with such dividends and distributions being paid. Thereafter, dividends and other distributions will be paid currently with respect to all earned awards, whether vested or unvested. Dividends or other distributions with respect to time-based awards will be paid currently on vested and unvested time-based awards. 

2026 Total Compensation Opportunity

The following table sets forth the respective total compensation opportunity, at threshold, target and maximum levels, for each participating executive officers under the Plan:

Executive		Threshold				Target				Maximum
Jay Lown		$	1,755,000			$	2,160,000			$	2,790,000
Julian Evans		$	1,100,000			$	1,375,000			$	1,787,500
Apeksha Patel		$	800,000			$	1,000,000			$	1,300,000

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	CHERRY HILL MORTGAGE INVESTMENT CORPORATION
	By:	/s/ Apeksha Patel
		Apeksha Patel
Date: April 10, 2026		Chief Financial Officer and Treasurer

FAQ

What did Cherry Hill Mortgage (CHMI) change in its 2026 executive compensation plan?

Cherry Hill Mortgage adopted a 2026 Executive Compensation Plan combining base salary, an annual cash bonus, and long-term equity incentives. The structure is designed for an internally managed REIT and ties a significant portion of executive pay to financial performance and total stockholder return over multi‑year periods.

What are the 2026 base salaries for Cherry Hill Mortgage (CHMI) executives?

For 2026, Cherry Hill Mortgage set base salaries at $900,000 for CEO Jay Lown, $550,000 for Chief Investment Officer Julian Evans, and $400,000 for Chief Financial Officer Apeksha Patel. These fixed amounts were benchmarked against similar public real estate investment trusts in terms of asset focus and size.

How does the short-term incentive program work for CHMI executives in 2026?

The short-term incentive program provides annual cash bonuses based on company financial metrics and individual goals. Awards are defined as percentages of base salary, with threshold, target, and maximum levels. If performance is below threshold for a component, no bonus is earned for that portion of the incentive opportunity.

How large are the 2026 cash bonus opportunities for CHMI’s top executives?

For 2026, CEO Jay Lown’s cash bonus ranges from $180,000 at threshold to $540,000 at maximum. CIO Julian Evans’ range is $137,500 to $412,500, and CFO Apeksha Patel’s range is $100,000 to $300,000, all determined as percentages of their respective base salaries.

How is Cherry Hill Mortgage’s long-term incentive plan structured for 2026?

The long-term incentive plan uses rolling three‑year performance periods starting 2026–2028. Awards are set in dollar terms, split 50% time-based and 50% performance-based equity. The performance portion depends on relative and absolute total stockholder return, with threshold, target, and maximum payout levels and linear interpolation between them.

What is the total 2026 compensation opportunity for CHMI’s CEO and other executives?

For 2026, CEO Jay Lown’s total opportunity ranges from $1,755,000 at threshold to $2,790,000 at maximum. CIO Julian Evans’ range is $1,100,000 to $1,787,500, and CFO Apeksha Patel’s range is $800,000 to $1,300,000, combining salary, short‑term bonus, and long‑term incentives.

Filing Exhibits & Attachments

4 documents

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 4.5 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 17.9 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 27.2 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 20.1 KB