Kristine R. Nario-Eng
About Kristine R. Nario-Eng
Chief Financial Officer and Secretary of New York Mortgage Trust, Inc. since May 14, 2014; previously Controller (joined November 2012), Assistant Vice President at Deutsche Bank in financial control/accounting (2010–2012), and audit roles at Grant Thornton LLP (2005–2010). She is a Certified Public Accountant (inactive) and graduated Cum Laude from the University of Santo Tomas, Manila, Philippines; age 45 as of the 2025 proxy . NYMT’s 2024 operating commentary notes >60% year-over-year increase in adjusted interest income and net portfolio growth in 2024, contextualizing incentive outcomes; in 2022, annual total stockholder return was -20.43%, ranking 9/20 among peer mortgage REITs, and adjusted total economic return was -7.4% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| New York Mortgage Trust, Inc. | Controller | 2012–2014 | Built internal reporting/controls prior to promotion to CFO |
| Deutsche Bank AG (and affiliates) | Assistant Vice President (financial control/accounting services) | 2010–2012 | Financial control/operations in global banking environment |
| Grant Thornton LLP | Audit (manager/supervisor) | 2005–2010 | Led audits across hedge funds, broker-dealers, private equity, REITs |
External Roles
Not disclosed for Nario-Eng in company filings.
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $450,000 | $500,000 | $525,000 |
| Target Bonus ($) | $562,500 | $675,000 | $708,750 |
Notes:
- Annual incentive plan weighting is 75% quantitative and 25% qualitative (consistent since 2020) .
- 2024 increases to target bonus reflect base salary increases; payout mechanics detailed below .
Performance Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Annual Incentive (Cash) | $253,125 paid (non‑equity incentive) | $337,500 paid (cash) | $310,078 paid (non‑equity incentive) |
| Annual Incentive Weighting | 75% Quantitative / 25% Qualitative | 75% Quantitative / 25% Qualitative; quant split 50% absolute Adjusted TER and 50% relative Adjusted TER | 75% Quantitative / 25% Qualitative |
| Long‑Term Equity (Grant Date Fair Value) | RSUs $187,500; PSUs $490,925 | RSUs $300,000; PSUs $589,302 | RSUs $256,650; PSUs $316,848 |
| PSU Performance Metric | Relative TSR over 3‑yr period (2022 EIP period ended 12/31/2024) | Relative TSR (2023 EIP ends 12/31/2025); updated policy in 2024 | Relative TSR; 100% target earned at 55th percentile; capped at target if absolute TSR is negative |
| RSU Vesting | 1/3 per year over 3 anniversaries of grant date | 1/3 per year over 3 anniversaries of grant date | 1/3 per year over 3 anniversaries of grant date |
Dividend Equivalent Rights (DERs) and Dividends (included in “All Other Compensation”):
- 2022: Dividends $36,127; DERs $62,403; total $98,530 .
- 2023: Dividends $27,633; DERs $172,148; total $199,781 .
- 2024: Dividends $8,497; DERs $42,109; total $50,606 .
Equity Ownership & Alignment
| Metric (as of 4/17/2025) | Value |
|---|---|
| Beneficial Ownership – Common Shares | 137,522 shares (less than 1% of outstanding) |
| Unvested RSUs (excluded from beneficial ownership) | 106,751 target units |
| Unvested PSUs (excluded from beneficial ownership) | 207,891 target units (aggregate of 2023–2025 cycles) |
| Stock Ownership Guidelines (Executives) | CEO/President: 5x base; Other executives (incl. CFO): 2x base; each executive complies or is within 5‑year window |
| Hedging/Pledging Policy | Prohibited for directors/executives (anti‑hedging and anti‑pledging), with robust insider trading policy |
PSU/RSU Grant Sizes (Targets & Counts):
| Award Year | Target PSUs | RSUs |
|---|---|---|
| 2022 | 25,201 | 12,600 |
| 2023 | 43,945 | 29,297 |
| 2024 | 55,393 | 36,928 |
Note: RSUs vest ratably over three years; PSUs earn based on relative TSR over the applicable three‑year performance period .
Insider transactions: Attempted to fetch Form 4 data via insider-trades skill, but the API returned unauthorized; thus Form 4 trading analysis cannot be provided here.
Employment Terms
| Provision | Details |
|---|---|
| Employment Agreement | Effective Feb 1, 2022; 2‑year term ending Jan 31, 2024 with automatic 1‑year renewals unless 90‑day non‑renewal notice |
| Base Salary in Agreement | $450,000 (subject to increases) |
| Annual Bonus Plan | Adopted each fiscal year by March 31; performance criteria set by Compensation Committee |
| Long‑Term Incentive Eligibility | Awards under 2017 Equity Incentive Plan, subject to award terms |
| Severance (Without Cause / Non‑Renewal / Good Reason) | Lump sum = 1x (base salary at termination + average annual bonus for prior 2 years); COBRA reimbursements up to 18 months; acceleration of unvested equity (performance awards vest per metrics through end of performance period) |
| Death Benefits | Salary for year of death + target bonus; acceleration of unvested equity (performance vesting per metrics); continued healthcare benefits for dependents for 18 months |
| Disability | COBRA reimbursements and equity vesting (performance vesting per metrics); disability plan entitlements |
| Change‑in‑Control | No compensation solely upon change‑in‑control; executive equity awards have “double trigger” vesting, i.e., require qualifying termination in connection with CIC to accelerate; no single‑trigger payouts |
| Non‑Compete / Non‑Solicit | One‑year post‑employment non‑compete and non‑solicit; confidentiality covenants and equitable relief provisions |
| Parachute Payment Treatment | Section 280G cutback under stock plan (no gross‑up) |
Potential Payments (as of 12/31/2024 valuations):
- Termination without cause/resign with good reason: Stock awards $1,018,868; Non‑equity incentive $975,000; Benefits $51,734; total $2,045,602 .
- Death: Salary $525,000; Target bonus $708,750; Stock awards $1,018,868; Benefits $29,711; total $2,282,329 .
- Change‑in‑control alone: $0 (no amounts due solely upon CIC) .
Compensation Structure Analysis
- Year‑over‑year mix: 2022–2024 total compensation ranged ~$1.46–$1.93M with a significant equity component; non‑equity incentive cash remained performance‑linked, and RSU/PSU awards provided multi‑year vesting/earning .
- Shift to PSUs/RSUs: NYMT uses RSUs (time‑based) and PSUs (relative TSR). In 2024, PSUs became more rigorous: 100% target at 55th percentile and capped at target when absolute TSR is negative, strengthening pay‑for‑performance alignment .
- Quantitative metrics: Annual plan emphasizes quantitative outcomes (75%), with 2023 quant split between absolute and relative Adjusted TER (50/50), reducing sole dependence on absolute measures in volatile markets .
- Discretion reductions: Positive discretion was eliminated in the 2024 annual plan; 2023 certifications avoided positive discretion following shareholder feedback (62% say‑on‑pay in 2023; 95% in 2024) .
- Clawback: Policy adopted to comply with SEC/Nasdaq rules (recoupment upon accounting restatements) .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited for executives (reduces misalignment risk) .
- Clawback: Implemented (recoupment risk controls) .
- Equity acceleration: Double‑trigger vesting only; no payouts solely on CIC (limits windfalls) .
- DERs: Dividend equivalents produce cash on vesting; visible in “All Other Compensation” and may influence sell‑to‑cover dynamics, though no Form 4 data analyzed here .
- Say‑on‑pay volatility: 62% approval in 2023 prompted program changes; improved to ~95% in 2024 (program responsiveness) .
Say‑on‑Pay & Shareholder Feedback
- 2023 Advisory Vote: ~62% approval; investors questioned heavy reliance on a single quantitative metric and positive discretion .
- Program Changes: Introduced equal absolute/relative Adjusted TER weighting, eliminated positive discretion, tightened PSU design (55th percentile threshold; cap in negative TSR) .
- 2024 Advisory Vote: ~95% approval following changes .
Expertise & Qualifications
- CPA (inactive); deep background in public company audits and financial control functions; long‑tenured NYMT finance leader (CFO since 2014) .
- Human capital and governance: NYMT emphasizes corporate governance (independent committees, stock ownership guidelines) and insider trading controls relevant to the CFO’s remit .
Work History & Career Trajectory
| Company | Role | Time at Company | Notes |
|---|---|---|---|
| New York Mortgage Trust, Inc. | Controller → CFO | Since 2012; CFO since 2014 | Promoted internally; oversees financial reporting, IR, compliance |
| Deutsche Bank AG | Assistant Vice President | 2010–2012 | Financial control/accounting services |
| Grant Thornton LLP | Audit leadership | 2005–2010 | Managed audits across REITs/financials |
Compensation Committee & Peer Benchmarking
- Independent Compensation Committee uses Pearl Meyer; peer set of 11 real estate/financial firms (e.g., Arbor Realty Trust, MFA Financial, Two Harbors, Redwood Trust, Walker & Dunlop) to benchmark pay; no fixed percentile targets for cash pay; PSU goals use relative TSR vs performance peer group .
Investment Implications
- Alignment: Stronger pay‑for‑performance features (rigorous PSUs, elimination of positive discretion) and ownership guidelines (2x base for CFO) support shareholder alignment; hedging/pledging prohibitions and clawback add controls .
- Retention risk: One‑year non‑compete/non‑solicit and severance at 1x salary+bonus provide retention/transition stability; equity acceleration remains contingent on performance metrics even when accelerated (limits windfalls) .
- Trading signals: DER cash flows are sizable (e.g., 2023 DER settlements $172,148), but without Form 4 data we cannot assess selling pressure; watch vesting calendars (RSUs vest annually over 3 years) and PSU performance determinations for potential activity .
- Performance context: 2022 TSR was negative; 2024 management indicates portfolio repositioning and income growth (>60% adjusted interest income YoY) supporting future quantitative incentive outcomes; monitor Adjusted TER and relative TSR vs peer set .
Note: We attempted to retrieve insider Form 4 data via the insider-trades skill for “Nario-Eng” at NYMT, but the API call returned unauthorized; therefore, insider transaction analysis is not included.