Ethan Lebowitz
About Ethan Lebowitz
Ethan Lebowitz, age 46, is Granite Point Mortgage Trust’s Chief Operating Officer (COO) effective May 1, 2025, after serving as Deputy COO from January 7, 2025. He holds a B.A. in History from Brandeis University and previously held roles in commercial real estate credit and originations at Prudential Real Estate Investors (2010–2015) and Five Mile Capital Partners (2005–2010), with earlier positions in M&A at Banc of America Securities and Business Development & Strategy at FleetBoston Financial . During his appointment period, company performance context included 2024 TSR of 25.13 (vs. Peer Group 79.96), “Run‑rate” ROAE of −1.2%, and GAAP net loss of $(207.1) million .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Prudential Real Estate Investors (PGIM Real Estate) | Vice President, Global Real Estate Finance (high yield debt) | 2010–2015 | Credit underwriting and high‑yield CRE debt expertise supporting origination and portfolio risk management |
| Five Mile Capital Partners | Associate Director | 2005–2010 | Principal investing experience and structured credit exposure aligning with transitional CRE loan strategy |
| Banc of America Securities | Mergers & Acquisitions (member) | — | Transaction execution background enhancing capital allocation and resolution strategies |
| FleetBoston Financial | Business Development & Strategy (member) | — | Strategic planning and corporate development experience applicable to franchise value initiatives |
Fixed Compensation
| Component | Value | Notes |
|---|---|---|
| Base Salary | $500,000 | Initial annual base salary per Employment Agreement (Jan 7, 2025) |
| Target Annual Cash Bonus | 75% of base salary | AIP target; payout range 0–200% of target, with goals set by Board/Comp Committee |
Performance Compensation
| Instrument | Metric | Weighting | Target/Calibration | Payout Range | Vesting |
|---|---|---|---|---|---|
| Annual Cash (AIP) | “Run‑rate” ROAE | 25% of financial component | Threshold 2.0%, Target 4.0%, Max ≥8.0% (program structure) | 0–200% of target | Paid after year based on achieved metrics; qualitative strategic 50% component |
| Annual Cash (AIP) | Change in Book Value per Share | 25% of financial component | Threshold −15.0%, Target −5.0%, Max ≥+15.0% (program structure) | 0–200% of target | Same as above |
| Annual Cash (AIP) | Strategic Objectives (balance sheet, risk, investor focus, franchise) | 50% | Committee assessment; multiplier 0–2x based on achievement | 0–200% of target | Annual payout timing |
| PSUs (2025 awards per agreement) | Absolute “Run‑rate” ROAE | 25% | Target curve not publicly disclosed; earn‑out 0–200% | 0–200% of target shares | Earned over 3‑year period; settle after performance period |
| PSUs | Relative “Run‑rate” ROAE | 25% | Threshold: 25th percentile; Target: 50th; Max: 75th | 0–200% of target shares | Same as above |
| PSUs | Absolute Change in Book Value per Share | 25% | Target curve not publicly disclosed; earn‑out 0–200% | 0–200% of target shares | Same |
| PSUs | Relative Change in Book Value per Share | 25% | Threshold: 25th percentile; Target: 50th; Max: 75th | 0–200% of target shares | Same |
| RSUs (2025 awards per agreement) | Time‑based | — | DERs attached | n/a | Ratable vest over 3 years |
Notes • Employment Agreement specifies 2025 equity awards split 50% time‑based RSUs and 50% PSUs; RSUs/PSUs include DERs .
• Company AIP/PSU metric design and weighting per DEF 14A CD&A; 2024 financial matrices shown for framework (targets not disclosed for future awards) .
Equity Ownership & Alignment
- Stock ownership guidelines: executive officers must hold stock with market value ≥3× base salary; CEO 5×. Unvested RSUs count; PSUs do not. Compliance expected within 5 years; retain ≥75% of net shares until guideline met .
- Hedging/pledging prohibited for officers/directors/employees under Insider Trading Policy .
- Clawback: SEC/NYSE‑compliant policy (Oct 2023); recovery of incentive compensation over 3 years upon required restatement .
- Ethan’s specific beneficial ownership not disclosed in the March 15, 2025 table (he was Deputy COO and not listed as of that date) .
Employment Terms
| Term | Provision | Detail |
|---|---|---|
| Employment & Role | Deputy COO; COO transition | Deputy COO effective Jan 7, 2025; COO effective on or before May 1, 2025 |
| Severance (No CoC) | Cash severance | 1.0× (base salary + target bonus), paid over 12 months; plus unpaid prior bonus and pro‑rated current‑year bonus; 18 months COBRA reimbursement; equity: continued vesting of time‑based, pro‑rated PSUs vest based on actual performance at period end |
| Severance (CoC window −3 to +24 months) | CIC lump sum; equity acceleration | 1.5× (base salary + target bonus), lump sum (subject to 409A CIC); pro‑rated target bonus; 18 months COBRA; time‑based equity immediate vest; PSUs vest at target (settlement timing subject to 409A) |
| Restrictive Covenants | Non‑compete; Non‑solicit; Non‑disparagement | Non‑compete 6 months post‑termination; Non‑solicit 12 months; mutual non‑disparagement |
| Arbitration | Binding arbitration (JAMS) | Employment disputes subject to binding arbitration in NY; jury waiver |
| Golden Parachute | 280G cutback | Best‑net calculation with ordered reductions to avoid 4999 excise tax |
| Indemnification & D&O | Indemnification agreement; D&O coverage | Company indemnifies and advances expenses; covered under D&O policy |
| Insider Policy | Hedging/pledging ban | Prohibits short sales, derivatives, hedging, pledging; preclearance & trading windows |
Performance & Track Record
- COO transition completed May 1, 2025; leadership emphasized loan resolutions and portfolio risk reduction on Q1 2025 call .
- 2024 results context: GAAP net loss $(221.5) million; book value per common share $8.47; CECL reserve $201.0 million (9.2% of commitments); portfolio 98% floating‑rate, >99% senior loans .
- Post‑Q4 updates: REO taken in Miami Beach ($71.0 million expected carrying value) and Boston office resolution with expected write‑off reserved .
Compensation Structure Analysis
- Pay‑for‑performance alignment via AIP and PSUs tied to “Run‑rate” ROAE and Book Value change; sliding‑scale earn‑outs capped at 200% .
- Mix balances retention (RSUs) and performance risk (PSUs); DERs accrue but pay only on earned PSUs; no single‑trigger CoC vesting under plan; double‑trigger in agreements .
- 2024 Say‑on‑Pay approval ~92%, indicating investor support for program design .
- Equity plan overhang: Amended & Restated 2022 Omnibus Plan seeks +10,000,000 shares and extends term to 2035; potential dilution including outstanding awards ~25.2% as of April 7, 2025, if approved .
Investment Implications
- Alignment: 3× salary ownership guideline, strict hedging/pledging ban, clawback, and double‑trigger CoC vesting support shareholder-friendly governance .
- Retention risk: Non‑compete (6 months) and continued vesting for time‑based awards post‑termination reduce immediate turnover risk; severance multiple at 1.0× (1.5× in CoC) is moderate vs. REIT peers .
- Performance linkage: Metrics (ROAE, BVPS) align with mREIT valuation drivers; prior-period negative ROAE and BVPS declines underscore need for execution on credit resolutions and funding costs to drive PSU outcomes .
- Dilution watch: Proposed share increase and burn rates require monitoring; though used to retain/align talent, equity usage at lower share prices can amplify dilution; management projects sufficiency through FY2028 .
Ethan Lebowitz’s compensation structure features balanced cash and equity with clear performance metrics (ROAE, book value change), moderate severance economics, and strict ownership/hedging controls, indicating solid alignment; execution on portfolio resolutions and funding profile will be pivotal for PSU realization and investor returns. **[1703644_0001104659-25-001571_tm251866d1_8k.htm:1]** **[1703644_0001104659-25-036842_tm252316-3_def14a.htm:70]** **[1703644_0001104659-25-036842_tm252316-3_def14a.htm:73]** **[1703644_0001104659-25-036842_tm252316-3_def14a.htm:76]** **[1703644_0001703644-25-000021_gpmtq4andfy2024earningsrel.htm:0]**