Paul Richards
About Paul Richards
Paul Richards, age 36, became NREF’s Chief Financial Officer, Executive VP–Finance, Assistant Secretary and Treasurer effective January 1, 2025, and serves as the Company’s principal financial officer and principal accounting officer; he previously was VP of Originations & Investments from February 2020 to December 2024 . He also holds CFO roles at NexPoint Residential Trust (NXRT) and NexPoint Diversified Real Estate Trust (NXDT), is CFO and Corporate Secretary at NexPoint Hospitality Trust (NHT), and CFO at VineBrook Homes Trust, indicating significant cross-platform finance leadership across affiliates . NREF is externally managed; executives are employees of the Manager and do not receive cash compensation from NREF, which constrains TSR/EBITDA/bonus performance linkages at the company level; NREF’s equity awards are service-based RSUs (no options) with specified vesting and change-in-control mechanics .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NexPoint Real Estate Finance (NREF) | Chief Financial Officer, Executive VP–Finance, Assistant Secretary & Treasurer; Principal Financial Officer and Principal Accounting Officer | Jan 2025–present | Leads financial reporting/accounting and financing/capital allocation decisions; consolidates PFO/PAO responsibilities |
| NREF | VP of Originations & Investments | Feb 2020–Dec 2024 | Originated/invested across target assets; platform build-out in multifamily/SFR/self-storage/life sciences focus areas |
| VineBrook Homes Trust | CFO; previously VP Asset Management & Financing | CFO: Aug 2024–present; VP: 2018–Aug 2024 | Scaled SFR finance and asset management capacities; capital markets support for securitizations and debt |
| NexPoint Hospitality Trust (NHT) | CFO & Corporate Secretary; previously VP Asset Management | CFO/Corp Sec: Jan 2025–present; VP: Mar 2019–present | Expanded hospitality asset management and finance oversight |
| NexPoint Asset Management (formerly Highland Capital Management Fund Advisors) | Product Strategy Associate | 2016–2017 | Evaluated/optimized registered product lineup |
| Deloitte & Touche LLP | Tax Consultant (State & Local Tax) | Prior to 2014 | State strategic tax reviews, VDAs, compliance and exposure research |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| NexPoint Real Estate Advisors, L.P. (NREA) | Director | 2019–present | Governance role at Manager affiliate supporting NREF’s externally managed model |
| NXRT, NXDT, NHT, VineBrook | CFO roles across affiliates | 2024–present (varies by entity) | Indicates cross-platform finance leadership and potential time-allocation/retention dynamics |
Fixed Compensation
NREF is externally managed; executives are employees of the Manager and NREF does not pay cash compensation (no base salary, bonus, pension or nonqualified deferred comp from NREF). Any cash compensation is set/paid by the Manager (not disclosed by NREF).
| Item | 2024 | 2025 |
|---|---|---|
| Base Salary (from NREF) | Not paid by NREF | Not paid by NREF |
| Target Bonus % (from NREF) | Not applicable | Not applicable |
| Actual Bonus Paid (from NREF) | Not applicable | Not applicable |
| Pension / Deferred Comp (from NREF) | None | None |
Performance Compensation
NREF uses service-based RSUs under its LTIP; NREF does not grant stock options. The Compensation Committee typically grants equity awards annually at least two business days after filing the 10-K, and may grant awards upon promotions/significant events (e.g., Richards’ CFO appointment) . Change-in-control acceleration is single-trigger if awards are not assumed; if assumed, double-trigger (terminate without cause or for good reason within two years) .
| Metric/Plan Feature | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|
| RSUs (service-based) | Not performance-weighted | Time-based service | Grants per LTIP; no options; timing post-10-K | Typical schedules observed for NEOs: one-third annually over 3 years (e.g., Apr 4 tranches) or one-fourth annually over 4 years (e.g., Mar 13 tranches); similar schedules expected for officers |
| Options | None | N/A | N/A | N/A |
| Change-in-Control (CIC) | N/A | N/A | If not assumed/converted: full vest; if assumed/converted: vest on termination without cause or for good reason within 2 years | As specified in award agreements |
Notes: Summary Compensation Table discloses RSUs for named executive officers (NEOs) in 2023–2024; Richards became CFO in 2025 and is not included in 2024 NEO tables . The policy framework and vesting mechanics apply to officers broadly .
Equity Ownership & Alignment
| Item | Status |
|---|---|
| Total beneficial ownership (Paul Richards) | Not disclosed in the Security Ownership table (table lists NEOs/directors; Richards not included) |
| Ownership as % of shares outstanding | Not disclosed |
| Vested vs. unvested shares | Not disclosed for Richards; NEO examples show sizable unvested RSUs with staggered vesting |
| Options (exercisable/unexercisable) | None; NREF does not grant options |
| Hedging policy | Hedging of company securities prohibited for directors/executives under insider trading policy |
| Pledging | No blanket prohibition disclosed; pledging disclosed for certain insiders (e.g., Dondero, Mitts); no pledge disclosure for Richards in ownership table |
| Stock ownership guidelines | Not disclosed; governance documents available online |
Employment Terms
| Term | Detail |
|---|---|
| Appointment | CFO, EVP–Finance, Assistant Secretary & Treasurer; PFO & PAO effective Jan 1, 2025 |
| Employment relationship | Externally managed; executive is an employee of the Manager; NREF does not have cash compensation agreements with executives |
| Contract term/auto-renewal | Not disclosed (applies at Manager level); Management Agreement governing external model has rolling one-year terms after initial term |
| Severance/Termination economics | RSU acceleration: death/disability/retirement → vest; awards prior to 2024: vest on termination without cause/for good reason; awards in/after 2024: vest RSUs that would vest in next 12 months upon termination without cause (with release); CIC not assumed → full vest; CIC assumed → double-trigger vest within 2 years on termination without cause/for good reason |
| Clawback | Not specifically disclosed; code of ethics and governance guidelines referenced |
| Non-compete / Non-solicit / Garden leave | Not disclosed (company-level); separation mechanics disclosed for former CFO, not for Richards |
| Insider trading | Hedging prohibited; policy governs directors/officers |
Investment Implications
- Pay-for-performance linkage is limited at company level due to external management; NREF does not pay cash comp to executives, and equity awards are service-based RSUs without disclosed performance metrics (no PSUs/options), reducing direct alignment with TSR/EBITDA targets but supporting retention through staggered vesting .
- Vesting cadence and grant timing suggest periodic RSU deliveries post-10-K and upon promotions; while Richards’ specific RSU grants are not disclosed for 2025, typical officer awards vest over 3–4 years, creating predictable potential selling pressure at vest dates, subject to trading windows and hedging prohibition .
- Alignment red flags: pledging is not categorically prohibited and is present among certain insiders (e.g., Dondero, Mitts), though no pledging is disclosed for Richards; investors should monitor future ownership tables for Richards’ beneficial holdings and any pledges .
- CIC economics are shareholder-friendly relative to single-trigger if awards are not assumed; where assumed, double-trigger applies, moderating windfalls but still providing strong protection; for post-2024 awards, “12-month forward vest” on without-cause terminations reduces immediate acceleration versus older grants .
- Execution/retention: Richards’ concurrent CFO roles across NXRT, NXDT, NHT and VineBrook indicate heavy cross-platform responsibilities; time-allocation risk exists, but also enhances institutional knowledge and financing reach across affiliates; governance conflicts inherent to the external management model warrant ongoing monitoring, including allocation policies and related-party transactions .
Overall: Expect a retention-oriented equity structure with time-based RSUs and no disclosed performance metrics; watch for future proxy updates to quantify Richards’ RSU grants, ownership, and any changes in CIC or clawback policies. Hedging is prohibited; pledging practices should be monitored in subsequent ownership tables .