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Redwood Trust CEO converts PSUs, withholds shares for tax

Redwood Trust CEO Christopher J. Abate reported routine compensation-related transactions involving Performance Stock Units under an Executive Deferred Compensation Plan.

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
4

Rhea-AI Filing Summary

Redwood Trust CEO Christopher J. Abate reported routine compensation-related transactions involving Performance Stock Units under an Executive Deferred Compensation Plan. On April 14, 2026, 51,396 Performance Stock Units were exercised and converted into 51,396 shares of common stock.

To cover income tax obligations from this distribution and/or conversion, 60,212 underlying shares were disposed of through a Compensation Committee–approved tax-withholding transaction. The remaining 51,396 common shares were credited to an indirect holding "by Trust," bringing that trust’s common stock position to 579,283 shares. Following these transactions, no Performance Stock Units from the same original grant date remain outstanding.

Positive

  • None.

Negative

  • None.
Insider Abate Christopher J
Role Chief Executive Officer
Type Security Shares Price Value
Exercise Price or Tax Liability Performance Stock Units 60,212 $0.00 $0.00
Exercise Performance Stock Units 51,396 $0.00 $0.00
Exercise Common Stock 51,396 $5.97 $307K
Holdings After Transaction: Performance Stock Units — 0 contracts (Direct); Common Stock — 579,283 shares (Indirect, by Trust)
Footnotes (7)
  1. F1. This transaction relates to the distribution and/or conversion of Performance Stock Units to common stock under the Executive Deferred Compensation Plan.
  2. F2. Represents the value (per stock unit or share of common stock) of the distribution and/or conversion of Performance Stock Units to common stock under the Executive Deferred Compensation Plan, based on the fair market value of Redwood Trust, Inc. common stock on the transaction date.
  3. F3. Represents fair value per stock unit of Performance Stock Units based on the original grant date fair value determined at such time in accordance with FASB Accounting Standards Codification Topic 718.
  4. F4. This disposition transaction represents a Compensation Committee approved withholding of securities incident to the payment of income tax liability relating to the distribution and/or conversion of Performance Stock Units under the Executive Deferred Compensation Plan.
  5. F5. Performance Stock Units were subject to a mandatory holding period and conversion and/or distribution to the Reporting Person within 45 days following April 1, 2026.
  6. F6. No expiration date is applicable to performance stock units.
  7. F7. Following these reported transactions, no other Performance Stock Units with the same original grant date are beneficially owned.
Tax-withholding shares 60,212 shares Shares disposed of for income tax withholding on April 14, 2026
PSUs converted 51,396 units/shares Performance Stock Units converted into common stock on April 14, 2026
Trust holdings after transaction 579,283 shares Common stock held indirectly by trust following the Form 4 transactions
PSU grant fair value $9.0917 per unit Original grant date fair value for Performance Stock Units under ASC 718
Common stock value used $5.97 per share Value per share of common stock in the non-derivative transaction
Performance Stock Units financial
"This transaction relates to the distribution and/or conversion of Performance Stock Units to common stock"
Performance stock units are a type of company award that grants employees shares of stock only if certain performance goals are met. They motivate employees to work toward specific company achievements, aligning their interests with those of shareholders. For investors, they can influence a company's future stock supply and reflect management’s confidence in reaching key targets.
Executive Deferred Compensation Plan financial
"distribution and/or conversion of Performance Stock Units to common stock under the Executive Deferred Compensation Plan"
tax-withholding disposition financial
"This disposition transaction represents a Compensation Committee approved withholding of securities incident to the payment of income tax liability"
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
FASB Accounting Standards Codification Topic 718 financial
"original grant date fair value determined at such time in accordance with FASB Accounting Standards Codification Topic 718"
mandatory holding period financial
"Performance Stock Units were subject to a mandatory holding period and conversion and/or distribution"

FAQ

What did Redwood Trust (RWT) CEO Christopher Abate report in this Form 4?
Christopher Abate reported the conversion of Performance Stock Units into common stock and related tax withholding. 51,396 units converted into 51,396 common shares, and 60,212 underlying shares were withheld to cover income tax obligations under an Executive Deferred Compensation Plan.

How many Redwood Trust Performance Stock Units did the CEO convert on April 14, 2026?
He exercised and converted 51,396 Performance Stock Units into 51,396 shares of Redwood Trust common stock. These units were distributed under an Executive Deferred Compensation Plan after a mandatory holding period that extended to within 45 days following April 1, 2026.

Why were 60,212 Redwood Trust shares disposed of in this Form 4 filing?
The 60,212-share disposition represents a Compensation Committee–approved tax-withholding transaction. Shares were withheld to satisfy income tax liability tied to the distribution and/or conversion of Performance Stock Units into common stock under the Executive Deferred Compensation Plan.

Are any Redwood Trust Performance Stock Units from this grant date still outstanding?
No, none remain from this grant date. A footnote states that following the reported transactions, no other Performance Stock Units with the same original grant date are beneficially owned, indicating the grant was fully distributed and/or converted.

What prices are disclosed for the Redwood Trust Performance Stock Units and common stock?
The filing shows a conversion or exercise price of $9.0917 per Performance Stock Unit, based on original grant date fair value under FASB ASC Topic 718. It also reports a $5.97 per-share value for the common stock involved in the non-derivative transaction.

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SEC Form 4
FORM 4UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number:3235-0287
Estimated average burden
hours per response:0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.
1. Name and Address of Reporting Person*
Abate Christopher J
(Last)(First)(Middle)
1 BELVEDERE PLACE
1 BELVEDERE PLACE
(Street)
MILL VALLEY CALIFORNIA 94941
(City)(State)(Zip)
UNITED STATES
(Country)		2. Issuer Name and Ticker or Trading Symbol
REDWOOD TRUST INC [ RWT ] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
XDirector10% Owner
XOfficer (give title below)Other (specify below)
Chief Executive Officer
2a. Foreign Trading Symbol
3. Date of Earliest Transaction (Month/Day/Year)
04/14/2026		6. Individual or Joint/Group Filing (Check Applicable Line)
XForm filed by One Reporting Person
Form filed by More than One Reporting Person
4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year)2A. Deemed Execution Date, if any (Month/Day/Year)3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
CodeVAmount(A) or (D)Price
Common Stock04/14/2026M(1)51,396A$5.97(2)579,283Iby Trust
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year)3A. Deemed Execution Date, if any (Month/Day/Year)4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year)7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
CodeV(A)(D)Date ExercisableExpiration DateTitleAmount or Number of Shares
Performance Stock Units$9.0917(3)04/14/2026F(4)60,212 (5) (6)Common Stock60,212$0.051,396D
Performance Stock Units$9.0917(3)04/14/2026M(1)51,396 (5) (6)Common Stock51,396$0.00(7)D
Explanation of Responses:
1. This transaction relates to the distribution and/or conversion of Performance Stock Units to common stock under the Executive Deferred Compensation Plan.
2. Represents the value (per stock unit or share of common stock) of the distribution and/or conversion of Performance Stock Units to common stock under the Executive Deferred Compensation Plan, based on the fair market value of Redwood Trust, Inc. common stock on the transaction date.
3. Represents fair value per stock unit of Performance Stock Units based on the original grant date fair value determined at such time in accordance with FASB Accounting Standards Codification Topic 718.
4. This disposition transaction represents a Compensation Committee approved withholding of securities incident to the payment of income tax liability relating to the distribution and/or conversion of Performance Stock Units under the Executive Deferred Compensation Plan.
5. Performance Stock Units were subject to a mandatory holding period and conversion and/or distribution to the Reporting Person within 45 days following April 1, 2026.
6. No expiration date is applicable to performance stock units.
7. Following these reported transactions, no other Performance Stock Units with the same original grant date are beneficially owned.
Attorney-In-Fact:/Andrew P. Stone04/15/2026
** Signature of Reporting PersonDate
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)

Source: View Original Filing on SEC EDGAR