PennyMac Mortgage Investment Trust Stock Compensation Disclosure
Note 22—Share-Based Compensation
The Company has an equity incentive plan that provides for the issuance of equity based awards based on Common Shares that may be made by the Company to its officers and trustees, and the members, officers, trustees, directors and employees of PCM, PFSI, or their affiliates and to PCM, PFSI and other entities that provide services to PMT and the employees of such other entities.
The equity incentive plan is administered by the Company’s compensation committee, pursuant to authority delegated by PMT’s board of trustees, which has the authority to make awards to the eligible participants referenced above, and to determine what form the awards will take, and the terms and conditions of the awards.
The equity incentive plan allows for the grant of restricted and performance-based share and unit awards.
The shares underlying award grants will again be available for award under the equity incentive plan if:
Restricted share units have been awarded to trustees and officers of the Company and to other employees of PFSI and its subsidiaries at no cost to the grantees. Such awards generally vest over a - to three-year period.
The following table summarizes the Company’s share-based compensation activity:
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|
Year ended December 31, |
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2025 |
|
|
2024 |
|
|
2023 |
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|||
|
|
(in thousands) |
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Grants: |
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|
|
|
|
|
|
|
|
|||
Restricted share units |
|
|
199 |
|
|
|
182 |
|
|
|
172 |
|
Performance share units |
|
|
168 |
|
|
|
140 |
|
|
|
166 |
|
|
|
|
367 |
|
|
|
322 |
|
|
|
338 |
|
Grant date fair value: |
|
|
|
|
|
|
|
|
|
|||
Restricted share units |
|
$ |
2,815 |
|
|
$ |
2,605 |
|
|
$ |
2,212 |
|
Performance share units |
|
|
2,365 |
|
|
|
2,007 |
|
|
|
2,088 |
|
|
|
$ |
5,180 |
|
|
$ |
4,612 |
|
|
$ |
4,300 |
|
Vestings: |
|
|
|
|
|
|
|
|
|
|||
Restricted share units |
|
|
144 |
|
|
|
164 |
|
|
|
140 |
|
Performance share units (1) |
|
|
91 |
|
|
|
203 |
|
|
|
48 |
|
|
|
|
235 |
|
|
|
367 |
|
|
|
188 |
|
Forfeitures: |
|
|
|
|
|
|
|
|
|
|||
Restricted share units |
|
|
— |
|
|
|
33 |
|
|
|
6 |
|
Performance share units |
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
|
— |
|
|
|
74 |
|
|
|
6 |
|
Compensation expense relating to share-based grants |
|
$ |
3,865 |
|
|
$ |
3,479 |
|
|
$ |
5,205 |
|
|
|
December 31, 2025 |
|
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|
|
Restricted share units |
|
|
Performance share units |
|
||
Shares expected to vest: |
|
|
||||||
Number of restricted shares units (in thousands) |
|
|
291 |
|
|
|
279 |
|
Grant date average fair value per unit |
|
$ |
14.06 |
|
|
$ |
14.05 |
|
Average remaining vesting (in months) |
|
|
9 |
|
|
|
9 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2020 | Feb 26, 2021 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.