Julian B. Evans
About Julian B. Evans
Julian B. Evans is Chief Investment Officer (CIO) of Cherry Hill Mortgage Investment Corporation (CHMI). He joined CHMI at IPO in October 2013 as Senior Trader and Portfolio Manager and was appointed CIO in March 2016; he is 55 years old and holds a BA in Economics from Trinity College and an MBA from the University of Michigan; the proxy notes he is a “certified financial analyst” . Company performance context: CHMI reported GAAP net income of $12.21 million in 2024, $(35.46) million in 2023, and $22.19 million in 2022, with total shareholder return (TSR) levels of $62.32 (2024), $67.66 (2023), and $84.75 (2022) per SEC pay-versus-performance presentation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Deutsche Asset Management | Director; Head of MBS Sector Team; Senior Portfolio Manager | — | Responsible for a platform of $25 billion of mortgage-backed securities |
| Times Square Capital Management (formerly Cigna Investment Management) | Vice President; Head trader for mortgage-related products | — | Assisted in management of an $11 billion portfolio of structured products |
External Roles
- No public company board roles or external directorships disclosed in the proxy for Mr. Evans .
Fixed Compensation
Current structure (internalization period):
| Component | Amount | Period | Notes |
|---|---|---|---|
| Base salary | $550,000 | Through December 31, 2025 | Established to maintain continuity post-internalization |
| Discretionary cash bonus | $275,000 | Paid March 2025 | Paid to maintain compensation at prior-year level per offer letter dated Nov 14, 2024 |
| Target bonus % | Not disclosed | — | Committee intends to adopt performance-based metrics by 2026 |
Multi-year compensation (company-reported):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary | — | — | $183,000 |
| Stock Awards (grant-date fair value) | $67,200 | $74,538 | $57,330 |
| Total | $67,200 | $74,538 | $240,330 |
Performance Compensation
Equity awards and vesting:
| Grant Date | Award Type | Units/Shares | Grant-Date Fair Value | Vesting Schedule | Performance Metrics |
|---|---|---|---|---|---|
| Jan 3, 2022 | LTIP Units | 8,000 | — | Ratable over 3 years beginning on 1-year anniversary of grant date, service-based | Not specified; historically linked to company metrics; plan to formalize by 2026 |
| Jan 10, 2023 | LTIP Units | 12,300 | — | Ratable over 3 years beginning on 1-year anniversary of grant date, service-based | Not specified; historically linked to company metrics; plan to formalize by 2026 |
| Jan 16, 2024 | LTIP Units | 14,625 | $57,330 | Ratable over 3 years beginning on 1-year anniversary of grant date, service-based | Not specified; historically linked to company metrics; plan to formalize by 2026 |
Outstanding unvested equity (as of 12/31/2024):
| Metric | Value |
|---|---|
| Unvested LTIP Unit underlying shares | 25,491 |
| Market value (at $2.64 closing price on 12/31/2024) | $67,296 |
Vesting schedule dates (service-based awards):
| Vesting Date | Notes |
|---|---|
| Jan 3, 2025 | Tranche from 2022 grant; ratable vesting |
| Jan 10, 2025 | Tranche from 2023 grant; ratable vesting |
| Jan 16, 2025 | Tranche from 2024 grant; ratable vesting |
| Jan 10, 2026 | Tranche from 2023 grant; ratable vesting |
| Jan 16, 2026 | Tranche from 2024 grant; ratable vesting |
| Jan 16, 2027 | Tranche from 2024 grant; ratable vesting |
Vesting activity in 2024:
| Metric | Amount |
|---|---|
| Shares acquired on vesting (LTIP equivalents) | 9,033 |
| Value realized on vesting | $36,108 |
Notes:
- No stock options disclosed; equity compensation primarily LTIP Units; Hutchby received vested common shares in 2024, but no such grant is listed for Evans .
Equity Ownership & Alignment
| Metric | Value |
|---|---|
| Total beneficial ownership (common shares) | 59,159 (includes vested LTIP Units) |
| Vested LTIP Units included | 53,575 |
| Unvested LTIP Units excluded (underlying shares) | 25,491 |
| Ownership as % of shares outstanding | <1% (denoted “*”) |
| Anti-hedging / anti-pledging | Hedging and pledging prohibited by policy |
| Stock ownership guidelines | Not disclosed |
Section 16(a) compliance:
- All reporting persons filed timely in 2024 per company review .
Employment Terms
| Term | Details |
|---|---|
| Employment start date (as CHMI employee) | November 14, 2024 (upon internalization) |
| Current role tenure | Appointed CIO in March 2016 |
| Employment agreement | None; NEOs do not have employment agreements |
| Severance plan | Executive Severance Plan adopted March 2025; Evans eligible |
| Severance multiple | 1.5x salary + target bonus (lump sum), plus 12 months health/dental premiums if enrolled |
| Non-compete | 1-year non-compete following separation |
| Change-of-control treatment | Immediate vesting of all LTIP Units if still performing services at time of change-of-control; Evans’ accelerated value estimated ~$210,000 (at 12/31/2024 price) |
| Clawback | Comprehensive incentive compensation recoupment policy in place |
| Perquisites | None provided to NEOs |
| Tax gross-ups | No golden parachute excise or tax gross-ups |
| Pension / deferred compensation | None provided to NEOs |
Performance & Track Record
Company-level outcomes relevant to CIO oversight:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| GAAP Net Income | $22,189,000 | ($35,455,000) | $12,210,000 |
| Total Shareholder Return (TSR) | $84.75 | $67.66 | $62.32 |
Context:
- Compensation committee indicates intent to benchmark and align executive pay with measurable performance metrics by FY 2026, reflecting an evolving pay-for-performance framework post internalization .
Compensation Committee Analysis
- Independent Compensation Committee with independent consultant FPC; NEOs to be eligible for equity and non-equity incentive plans beginning January 2026, with measurable metrics and peer benchmarking planned .
- “What We Do/Don’t Do” governance practices include no perquisites, no hedging/pledging, clawback policy, no tax gross-ups, and immediate LTIP vesting upon change-of-control if service continues at that time .
Investment Implications
- Retention risk appears contained near-term: fixed base salary ($550,000) and 2025 discretionary bonus ($275,000) were used to maintain continuity during internalization; unvested LTIP Units (25,491 underlying shares) vest across 2025–2027, creating continuing retention hooks .
- Pay-for-performance alignment is in transition: equity awards have been primarily time-based LTIP Units; committee plans measurable performance metrics by 2026, which could shift mix toward at-risk pay and clearer KPI linkages .
- Change-of-control economics: immediate vesting of LTIPs; estimated accelerated value for Evans of ~$210,000 as of 12/31/2024—monitor for M&A optionality and resulting equity unlocks .
- Trading signals: anti-hedging/anti-pledging reduces misalignment risk; monitor vesting dates (Jan 2025/2026/2027) and Form 4 filings for potential sales around vesting and tax events; Section 16 filings were timely in 2024 .