David Lyle
About David Lyle
David B. Lyle is Chief Operating Officer of Invesco Mortgage Capital Inc. (IVR) and has served in this role since 2017. He has 15 years of tenure with IVR and over 20 years of experience in the RMBS market; his education includes a bachelor of engineering degree from Vanderbilt University . Prior IVR roles include Executive Vice President, Residential Credit (March–October 2017) and Head of Residential Mortgage Credit (2011–March 2017) . At Invesco Fixed Income, he is the Co‑Head of the Structured Investment Team and Head of RMBS Credit, reflecting deep structured credit expertise .
Company performance context (last 3 fiscal years):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Net Income (USD) | -$402.9M | -$15.9M | $59.9M* |
| Return on Equity % | -36.53%* | -2.00%* | 7.91%* |
| Total Assets (USD) | $5,097.4M | $5,284.2M | $5,688.0M |
*Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| IVR | Chief Operating Officer | 2017–present | Operational leadership of mortgage investment platform; RMBS expertise |
| IVR | EVP, Residential Credit | Mar–Oct 2017 | Oversight of residential credit strategy during leadership transition |
| IVR | Head of Residential Mortgage Credit | 2011–Mar 2017 | Led RMBS credit strategy and portfolio construction |
| Invesco Fixed Income | Co‑Head Structured Investment Team; Head of RMBS Credit | 2006–present | Structured credit leadership across Invesco products |
| Friedman Billings Ramsey | Vice President, Investment Banking ABS group | ~3 years (pre‑2006) | Financing, transaction management, analytics in ABS |
| Wachovia Securities | Analyst, Mortgage Finance group | ~2 years (pre‑2006) | Analytics and support in mortgage finance |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Invesco Fixed Income | Co‑Head Structured Investment Team | 2006–present | Co‑leads structured investments across products |
| Invesco Fixed Income | Head of RMBS Credit | 2006–present | Sets RMBS credit standards and risk framework |
Fixed Compensation
IVR is externally managed by Invesco Advisers, Inc.; IVR has no employees and does not pay cash or equity compensation to its executive officers. Compensation for executives (including Lyle) is set and paid by Invesco; IVR does not have employment agreements, pension benefits, perquisites, or arrangements to pay severance/change‑of‑control benefits to its executive officers .
Estimated aggregate executive officer compensation associated with IVR (context vs. management fee):
| Year | Estimated Aggregate NEO Compensation | % of IVR Management Fee |
|---|---|---|
| 2018 | $2.8M | 7.1% |
| 2019 | $2.9M | 7.7% |
| 2020 | $1.7M | 6.0% |
| 2021 | $1.9M | 9.4% |
| 2023 | $1.41M | 11.4% |
| 2024 | $1.09M | 9.3% |
Management agreement economics: IVR pays a management fee equal to 1.50% of stockholders’ equity (subject to certain adjustments); no specific portion is allocated to executive compensation because executives manage multiple Invesco products .
Performance Compensation
- Invesco funds executive incentive compensation via an Invesco‑wide annual incentive pool sized using multiple operating measures and pre‑cash bonus operating income (PCBOI); guidance range used in setting the pool is 34%–48% of PCBOI (flexible in exceptional circumstances) .
- For 2020, the aggregate executive mix was 27% fixed, 73% variable/incentive compensation within the Invesco pool .
- IVR does not disclose individual metrics/targets/payouts for its executive officers due to the external management structure; compensation reflects performance across all products those executives manage .
Equity Ownership & Alignment
| As-of Date | Shares Owned | Notes |
|---|---|---|
| March 8, 2024 | 3,591 | Includes 54 shares held by Lyle’s spouse; no shares pledged; all directors/executives as a group own <1% of outstanding shares |
Ownership and trading policies:
- Executive Stock Ownership Policy: within five years of first appointment, COO must achieve ownership of at least 35,000 IVR shares; CEO 60,000; President/CIO 35,000; CFO 7,000 .
- Insider Trading Policy: prohibits short selling, publicly‑traded options, pledging, hedging/monetization transactions in IVR securities (limited exceptions, none to date) .
- 2024 Proxy: “No shares are pledged as security” for directors/executives; confirms low pledge‑related risk .
Employment Terms
| Term | Disclosure |
|---|---|
| Employment/employer | Executives (including Lyle) are employees of Invesco Advisers, Inc. or affiliates; IVR has no employees |
| Contracts | IVR has no employment agreements with executive officers; manager is responsible for compensation decisions |
| Severance/change‑of‑control | IVR does not have arrangements to pay severance or change‑of‑control benefits to executive officers (no payments upon termination as IVR officers) |
| Compensation source | Invesco‑wide incentive pool and Invesco compensation philosophy govern executive pay; IVR does not pay cash/equity to executives |
| Fee basis | Management fee set at 1.50% of stockholders’ equity; used in part to pay Invesco personnel serving IVR |
Investment Implications
- Alignment: External management plus a robust IVR stock ownership policy (COO target 35,000 shares) and explicit prohibitions on hedging/pledging support alignment, but Lyle’s currently disclosed direct ownership is small, limiting near‑term equity sensitivity .
- Retention: Compensation decisions are made within Invesco’s systemwide pool (PCBOI‑linked), which typically reduces individual company cyclicality and retention risk for IVR executives .
- Trading signals: Lack of pledged shares and low insider ownership reduces forced‑selling risk; absence of disclosed vesting schedules/option overhang at IVR (given external management) implies limited technical selling pressure tied to IVR equity awards .
- Execution risk: Lyle’s long tenure and structured credit leadership at Invesco and IVR mitigate execution risk in RMBS; the company’s turn to positive net income in FY 2024 and improving ROE provide supportive operating context, though performance is subject to rate/mortgage market cycles .