Cherry Hill Mortgage expands board, adopts executive severance plan

Published 12/03/2025, 21:10
Cherry Hill Mortgage expands board, adopts executive severance plan

Cherry Hill Mortgage Investment Corporation (NYSE:CHMI), a $111 million market cap real estate investment trust with a notable 17.49% dividend yield, announced on Monday the expansion of its Board of Directors and the adoption of a new executive severance plan. According to InvestingPro data, the company has demonstrated strong momentum with a 29.92% year-to-date return. The real estate investment trust, headquartered in Tinton Falls, New Jersey, increased its board from four to five members with the appointment of Dale S. Hoffman. Mr. Hoffman’s term will expire at the company’s 2025 annual meeting of stockholders, and he will also serve on the Board’s compensation and nominating and corporate governance committees. His appointment was effective as of March 11, 2025.

In addition to the board expansion, Cherry Hill Mortgage’s Board, following a recommendation from its compensation committee, adopted the Executive Severance Plan on Tuesday. This plan, which took effect immediately, covers key executive roles including the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, Senior Vice President of Mortgage Servicing, and General Counsel or Chief Legal Officer. The initial participants of this plan include President and CEO Jay Lown, CFO Michael Hutchby, CIO Julian Evans, and SVP of Mortgage Servicing Raymond (NSE:RYMD) Slater.

The Executive Severance Plan outlines the benefits for participants in the event of a qualifying termination, which could be a termination without cause or a voluntary termination for good reason. Eligible participants will receive a severance payment, which is a lump-sum cash amount based on a multiple of their annual compensation plus, if applicable, 12 months of health and/or dental premium payments. The severance multiple is set at 2.5 for the CEO and 1.5 for other participants. Additionally, participants must adhere to certain restrictive covenants, including a one-year non-compete clause.

This strategic move by Cherry Hill Mortgage comes with a set of conditions, including the participant’s obligation to sign and not revoke a waiver and release of claims against the company. The company reserves the right to amend, modify, or discontinue the Executive Severance Plan with certain limitations. InvestingPro analysis shows the company maintains a FAIR financial health score, with particularly strong marks in growth and relative value metrics. For deeper insights into Cherry Hill Mortgage’s financial position and governance structure, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information provided is based on a press release statement from Cherry Hill Mortgage Investment Corporation. Notably, the company has maintained consistent dividend payments for 12 consecutive years, demonstrating a strong commitment to shareholder returns. Discover more valuable insights about CHMI and over 1,400 other stocks with InvestingPro, including exclusive financial metrics, Fair Value calculations, and expert analysis.

In other recent news, Cherry Hill Mortgage Investment Corporation reported its fourth-quarter 2024 earnings, with earnings per share (EPS) aligning with market expectations at $0.10. The company did not specify its revenue forecast during the earnings call. Additionally, Cherry Hill Mortgage completed the internalization of its management, a move aimed at reducing operating expenses. The market value of Cherry Hill’s mortgage servicing rights (MSR) portfolio stands at approximately $234 million, reflecting the company’s strategic positioning in the residential mortgage sector. In terms of financial performance, Cherry Hill reported a GAAP net income of $9.1 million or $0.29 per diluted share, though its book value per common share decreased to $3.82 from $4.02 as of the previous quarter.

In another development, Cherry Hill Mortgage announced the appointment of Dale Hoffman to its Board of Directors. Hoffman, who will serve on the Compensation Committee and the Nominating and Corporate Governance Committee, brings over three decades of experience in fixed income capital markets. His previous roles include senior positions at Piper Jaffray and BMO Capital Markets. The company anticipates a "higher for longer" interest rate environment and plans to focus on residential mortgage-backed securities (RMBS) investments offering better returns. Cherry Hill’s strategic adjustments and market positioning aim to navigate the challenging economic landscape effectively.

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