Michael Comparato
About Michael Comparato
Michael Comparato (age 48) is President of Franklin BSP Realty Trust (FBRT) and Managing Director/Head of Commercial Real Estate at the Advisor (Benefit Street Partners). He has served as FBRT’s President since March 2023 and holds a B.S., Summa Cum Laude, from Babson College . Under his leadership alongside the CEO, FBRT reported 2024 GAAP ROE of 5.6% and Distributable Earnings ROE of 5.9%, paid an annual dividend of $1.42, and originated ~$2.0B of new loan commitments; cumulative TSR since FBRT’s 10/19/2021 NYSE listing stood at $103.62 vs $80.51 for the FTSE Mortgage REIT Index as of 12/31/2024 . Revenues increased across FY2022–FY2024 (see table below; S&P Global data).
| Performance Snapshot | Detail |
|---|---|
| Role/Tenure | President since March 2023 |
| Education | B.S., Summa Cum Laude, Babson College |
| 2024 Dividend | $1.42 annual dividend |
| 2024 ROE | 5.6% GAAP; 5.9% Distributable Earnings |
| TSR (10/19/21→12/31/24) | FBRT: $103.62; FTSE Mortgage REIT Index: $80.51 |
Revenues (S&P Global):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD Thousands) | 9,655* | 17,021* | 22,849* |
Values retrieved from S&P Global.*
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Benefit Street Partners (Advisor) | Managing Director; Head of Commercial Real Estate | Since 2015; Head since 2017 | Leads CRE origination/asset management supporting FBRT’s external management |
| Ladder Capital Corp. | Head of U.S. Equity Investments | Pre-2015 | Led team originating CMBS, structured/balance sheet, mezzanine loans; strategic asset acquisitions |
| BankAtlantic Commercial Mortgage Capital (BACMC) | President | Prior to Ladder | Ran day-to-day operations of CMBS affiliate |
| Compson Holding Corporation | Principal/Operator | Prior | Equity investments in commercial real estate assets and publicly traded REITs |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No public company directorships disclosed for Comparato |
Fixed Compensation
| Component (paid by FBRT unless noted) | 2024 | Commentary |
|---|---|---|
| Base salary | $0 | NEOs are Advisor employees; FBRT does not pay cash salary . |
| Target bonus % | N/A | Cash bonuses, if any, are paid by the Advisor; FBRT does not set or pay them . |
| Actual cash bonus | $0 | FBRT paid no cash comp; only equity (RSUs) from FBRT . |
| Perquisites, pension, deferred comp | None | FBRT provides no perqs/benefits to NEOs (other than RSUs) . |
Performance Compensation
FBRT grants time-based RSUs under its 2021 Equity Incentive Plan; vesting is in three equal annual installments with dividend-equivalent rights, subject to continued service. The Compensation Committee applies judgment considering Company TSR (absolute/relative), economic returns, origination volumes, credit quality, strategic mix, and individual performance; no fixed metric weightings are disclosed .
- 2025 Equity Grants (approved Jan 27, 2025): Comparato 136,882 RSUs; time-based, 3-year vest .
- 2024 Equity Grants (granted Feb 1, 2024): Comparato 118,865 RSUs; grant-date fair value $1,574,961; 3-year ratable vest; dividend equivalents .
- 2023 Equity Grants (granted Jan 27, 2023): Comparato 68,427 RSUs; grant-date fair value $974,400; 3-year ratable vest .
| Year | Award Type | Grant Date | Units Granted | Grant-Date Fair Value ($) | Vesting | Dividend Equivalents |
|---|---|---|---|---|---|---|
| 2023 | RSU | 1/27/2023 | 68,427 | 974,400 | 1/3 annually over 3 years | Yes (cash equivalents) |
| 2024 | RSU | 2/1/2024 | 118,865 | 1,574,961 | 1/3 annually over 3 years | Yes (cash equivalents) |
| 2025 | RSU | 1/27/2025 | 136,882 | — | 1/3 annually over 3 years (plan terms) | Yes (cash equivalents) |
Detailed pay-for-performance context
| Metric | Target | Actual | Payout | Vesting Basis |
|---|---|---|---|---|
| Distributable Earnings ROE | Discretionary | 5.9% (2024) | Reflected via RSU grant sizing | Time-based (3-yr) |
| Absolute TSR | Discretionary | $103.62 since 10/19/21 | Reflected via RSU grant sizing | Time-based (3-yr) |
| Relative TSR | Discretionary | FBRT $103.62 vs FTSE Mortgage REIT $80.51 | Reflected via RSU grant sizing | Time-based (3-yr) |
| Origination volumes/credit quality | Discretionary | ~$2.0B 2024 originations; portfolio quality emphasized | Reflected via RSU grant sizing | Time-based (3-yr) |
No stock options were disclosed for Comparato (grants are RSUs only) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (common shares) | 471,614 shares; “<1%” of class (as of 4/1/2025) . |
| Unvested RSUs (12/31/2024) | 118,865 (2024 grant; $1,490,567 value), 45,618 (2023; $572,050), 25,371 (2022; $318,152) . |
| Vested vs unvested | Unvested as above; vested shares reflected in beneficial ownership; RSUs not counted if not acquirable within 60 days . |
| Ownership guidelines | CEO: 3x average shares granted over prior 3 years; other execs: 2x; executives in compliance or on track as of 12/31/2024 . |
| Hedging/Pledging | Hedging prohibited; pledging/margin prohibited unless pre-approved by Audit Committee . |
| Insider transactions (2025) | 1/27/2025: Award of 136,882 RSUs; also non-open market disposition of 23,113 shares at $12.44 (commonly tax withholding), leaving 471,614 shares beneficially owned . |
Employment Terms
FBRT is externally managed; NEOs are Advisor employees. FBRT has no employment agreements with NEOs and pays no cash compensation or severance. RSU award agreements provide acceleration on death/disability and, upon a change of control where awards are not assumed, full vesting; otherwise, unvested RSUs are generally forfeited upon termination .
| Scenario (as of 12/31/2024) | Treatment | Estimated Value (Comparato) |
|---|---|---|
| General termination (for any reason) | Unvested RSUs forfeited (except as noted) | — |
| Death/Disability | All unvested RSUs vest immediately | $2,380,769 (at $12.54/sh) |
| Change of Control (awards not assumed) | All unvested RSUs vest | $2,380,769 (at $12.54/sh) |
Additional governance protections: NYSE-compliant clawback for incentive-based compensation; no excise tax gross-ups; no single-trigger cash severance benefits; annual Say-on-Pay vote (85% support in 2024) .
Performance & Track Record
| Area | Evidence |
|---|---|
| Loan origination/portfolio actions | ~$2.0B of 2024 new loan commitments; repayments of $1.6B; 52% of portfolio post-rate hikes by Jan 2025 . |
| Capital/ROE/Dividends | 2024 GAAP ROE 5.6%, Distributable Earnings ROE 5.9%; $1.42 annual dividend . |
| Strategic initiatives | Announced acquisition of NewPoint (multifamily lending platform) in March 2025; targeted Q3 2025 close . |
| TSR vs peers | Cumulative TSR since 10/19/2021: FBRT $103.62 vs FTSE Mortgage REIT Index $80.51 (through 12/31/2024) . |
Say-on-Pay & Shareholder Feedback
| Item | Detail |
|---|---|
| 2024 Say-on-Pay | ~85% approval; improvement vs prior year . |
| Key feedback responses | Expanded disclosure on external manager structure; continued annual RSU grants with 3-year vest; retention focus; independent comp consultant (F.W. Cook) . |
Compensation Structure Analysis
- Alignment and risk: FBRT grants time-based RSUs with 3-year vesting and dividend equivalents, encouraging retention and alignment but with less direct line-of-sight to specific financial targets (no disclosed weightings). Clawback and anti-hedging/pledging policies mitigate risk .
- Mix and trends: No cash pay from FBRT; equity grants increased from 2023 (68,427 RSUs) to 2024 (118,865) and 2025 (136,882), reflecting market/Company conditions and retention objectives .
- Single-trigger risks: No single-trigger cash severance; RSU acceleration limited to death/disability or change of control when awards are not assumed .
Risk Indicators & Red Flags
| Indicator | Status |
|---|---|
| Hedging/Pledging | Prohibited (pledging only by pre-approval); reduces misalignment risk . |
| Related party transactions | Relationship with external Advisor fully disclosed; fees/expenses reviewed; independent directors deemed transactions fair . |
| Legal/regulatory | Company reported no material legal/regulatory proceedings in 2024 . |
| Insider selling pressure | Periodic non-open market tax withholdings around vest dates (e.g., 1/27/2025) indicate mechanical selling; monitor vesting calendar for flows . |
Equity Ownership & Vesting Detail (as of 12/31/2024)
| Grant Date | Unvested Units | Market Value at $12.54 |
|---|---|---|
| 2/1/2024 | 118,865 | $1,490,567 |
| 1/27/2023 | 45,618 | $572,050 |
| 1/27/2022 | 25,371 | $318,152 |
Vesting cadence concentrates around late January/early February each year (1/27 and 2/1 anniversaries), a time window to monitor for tax-related dispositions and potential short-term technicals .
Employment Terms
| Topic | Terms |
|---|---|
| Contract term/renewal | No FBRT employment contract; externally managed . |
| Non-compete/Non-solicit | Not disclosed by FBRT (Advisor employment terms not provided) . |
| Severance | No FBRT cash severance; only RSU acceleration on death/disability or certain change-of-control scenarios . |
| Clawback | Mandatory recovery of incentive-based compensation upon restatement (NYSE Rule 10D-1 aligned) . |
Investment Implications
- Pay-for-performance alignment: Absence of cash pay from FBRT and reliance on time-based RSUs ties Comparato’s realized equity value to multi-year stock performance and dividend flows, while discretion on grant sizing incorporates TSR, Distributable Earnings, and origination/credit performance .
- Retention risk: Multi-year RSU schedules and ongoing annual grants (2023–2025) mitigate flight risk; executive ownership guidelines and robust anti-hedging/pledging policy enhance alignment .
- Event risk: RSUs accelerate only on death/disability or non-assumed change of control; otherwise forfeited upon termination—limiting corporate cash severance obligations and reducing entrenchment concerns .
- Trading signals: Expect tax-withholding dispositions around late January/early February vest dates; these can create modest, predictable selling pressure near anniversaries (e.g., 1/27/2025 disposition) .
- Strategic execution: 2024 ROE metrics, dividend continuity, and the announced NewPoint acquisition underscore a focus on earnings/book value growth and multifamily lending expansion—factors likely considered in equity award sizing and supportive of medium-term value creation if integration delivers as planned .
Notes:
- All “S&P Global” revenue values are marked with an asterisk in the table and sourced via GetFinancials.