Doug Jones
About Doug Jones
Doug Jones is Trustee, President and Chief Mortgage Banking Officer of PMT and has served as a director, President and Chief Mortgage Banking Officer of PennyMac Financial Services, Inc. (PFSI) since June 2011; he joined PMT’s Board in March 2023 and has been President and Chief Mortgage Banking Officer since March 2021. He holds a B.A. in economics from California State University, Sacramento and is 68 years old; his remit covers all mortgage banking operations, leveraging deep experience from Countrywide/Bank of America (1997–2011) in production and warehouse lending . 2024 PSU performance results used for compensation showed ROE of 8.4% and TSR of 33.3%, leading to payout factors of 80.1% on 2023/2024 PSUs and 110.2% on 2022 PSUs, indicating alignment of pay with profitability and market-relative returns .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PMT | President & Chief Mortgage Banking Officer; Trustee (Class III) | President/CMB since Mar 2021; Trustee since Mar 2023 | Responsible for all mortgage banking operations; experienced in mortgage production and warehouse lending |
| PMT | Senior Managing Director & Chief Mortgage Banking Officer | Jan 2017–Mar 2021 | Led mortgage banking strategy and operations |
| PFSI (parent/manager) | Director; President & Chief Mortgage Banking Officer | Since Jun 2011 | Leadership across production and warehouse lending; similar executive positions across affiliates |
| Countrywide/Bank of America | Senior Vice President, Mortgage Banking | 1997–2011 | Managed correspondent and warehouse lending operations and broader mortgage banking |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PennyMac Financial Services, Inc. (PFSI) | Director; President & Chief Mortgage Banking Officer | Since Jun 2011 | Oversees mortgage banking operations across production channels and warehouse lending |
Fixed Compensation
- PMT does not pay cash salary or annual cash bonus to named executive officers; compensation is delivered in equity (RSUs and PSUs) .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Stock Awards ($) | 499,977 | 499,987 | 599,990 |
Performance Compensation
- Long-term equity incentive mix: 55% PSUs, 45% time-based RSUs for 2024 .
- PSU metrics: ROE and Relative TSR, each weighted 50% with annual and cumulative payout mechanics; threshold 6% ROE = 50% payout, target 8% ROE = 100%, max 12% ROE = 200%; TSR percentile bands target 40–60% = 100% payout .
| Metric | Weighting | 2024 Target | 2024 Actual | 2024 Payout | Vesting Terms |
|---|---|---|---|---|---|
| ROE (Net Income ÷ Avg Equity) | 50% | 8.0% annualized/cumulative | 8.4% | Contributes to 80.1% total for 2023/2024 PSU cycles; 110.2% for 2022 cycle | PSUs vest in equal annual installments over 3 years, with annual/cumulative performance determination; service condition applies |
| Relative TSR (peer group) | 50% | 40–60th percentile = 100% | 33.3% TSR in 2024 | 80.1% payout in 2023/2024 PSU cycles; modifier in 2022 cycle | Same as above |
2024 Grants (Doug Jones):
| Grant Type | Grant Date | Number of Units | Grant-Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|
| RSU | 3/12/2024 | 18,802 | 269,997 | Vests ratably over 3 years beginning on the one-year anniversary of grant; dividend equivalents during vesting |
| PSU (Target) | 3/12/2024 | 22,980 | 329,993 | Three one-year performance periods (2024–2026) with annual/cumulative payout up to 200%; equal annual service-based tranches |
2024 Stock Vested (Realized):
| Component | Shares Vested | Value Realized ($) |
|---|---|---|
| PSUs | 18,219 | 256,341 |
| RSUs | 14,089 | 194,282 |
| Total | 32,308 | 450,624 |
Notes:
- 2024 PSU design increased ROE max threshold to 12% and max vesting to 200% from prior year’s 10%/150% to incentivize outperformance in a challenging rate environment .
- PSUs and RSUs include accelerated vesting upon certain qualifying terminations and, in some instances, change in control per award agreements .
Equity Ownership & Alignment
| Data Point | Value |
|---|---|
| Beneficial Ownership (as of 3/31/2024) | 51,021 common shares; none pledged |
| Ownership as % of Outstanding | <1% (company notes less than 1% for individuals; 86,845,447 shares outstanding) |
| Executive Ownership Guidelines | Other Executive Officers: $500,000; CEO: $2,000,000 |
| Guideline Compliance | Company states each named executive officer with ≥5 years tenure is in compliance; Doug has served as an executive since 2017 |
| Trading/Controls | Preclearance and open-window trading required; anti-pledging and anti-hedging policies in place |
Implications:
- Periodic RSU/PSU vesting can create incremental supply and potential selling for tax obligations, but pledging/hedging is prohibited and trades are controlled via preclearance/windows, mitigating adverse alignment signals .
Employment Terms
| Provision | Status |
|---|---|
| Employment Agreement | PMT reports no employment agreements for named executive officers |
| Severance | None; PMT does not provide severance payments to NEOs |
| Change-of-Control Cash | None; PMT not required to make change-in-control cash payments |
| Equity Treatment | RSUs/PSUs vest upon certain qualifying terminations and, in certain instances, change in control per award agreements |
| Clawback | Incentive compensation subject to recovery upon material accounting restatement; applies to Section 16 officers and SMDs |
| Non-Compete/Non-Solicit | Not disclosed by PMT; skip |
| Deferred Compensation/Pension | PMT does not provide pension or nonqualified deferred compensation plans |
Board Governance
- Board Service: Class III Trustee since March 2023; term to expire in 2027 .
- Committee Roles: As a management trustee, Doug is not on standing committees; six principal committees include Audit, Compensation, Finance, Nominating & Corporate Governance, Related Party Matters, and Risk .
- Independence: Management trustee (not independent) .
- Lead Independent Director: Preston DuFauchard .
- Voting Standard: Majority voting in uncontested elections; resignation policy for failing to receive majority support .
| Trustee | Class | Committee Memberships |
|---|---|---|
| Doug Jones | Class III | None (management trustee) |
Compensation Structure Analysis
- Equity-only compensation from PMT; cash compensation is paid by PFSI and disclosed separately (PMT’s Summary Compensation Table omits salary/bonus) .
- Mix shift: 2024 target LTI mix 55% PSUs / 45% RSUs, with heightened ROE hurdles and max payout increased to 200% vs 150% in 2023, signaling stronger performance orientation and potential for upside in favorable markets .
- Year-over-year PMT stock awards increased to $599,990 in 2024 from $499,987 in 2023, reflecting committee discretion based on performance and peer benchmarking .
Say-On-Pay & Shareholder Feedback
- Say-on-pay support: Approximately 98% approval at the 2022, 2023, and 2024 annual meetings; PMT cites pay-for-performance culture and enhanced disclosure practices .
Compensation Peer Group (Relative TSR)
- 2024 peer group for TSR includes Apollo Commercial Real Estate Finance, Arbor Realty Trust, ARMOUR Residential REIT, Blackstone Mortgage Trust, Chimera Investment, Ellington Financial, Invesco Mortgage Capital, KKR Real Estate Finance Trust, Ladder Capital, MFA Financial, Rithm Capital, New York Mortgage Trust, Redwood Trust, Starwood Property Trust, and Two Harbors Investment .
Risk Indicators & Red Flags
- Anti-pledging/anti-hedging policies; preclearance and trading windows reduce misalignment risks .
- No severance/change-in-control cash obligations reduces parachute risk .
- PSU hurdle increase (max to 12% ROE and 200% payout) suggests tightening targets rather than easing them .
- No disclosed legal proceedings specific to Doug; skip.
Investment Implications
- Alignment: Equity-based compensation tied to ROE and Relative TSR with tightened 2024 hurdles and strong say-on-pay support indicates investor-friendly structures; Doug’s realized vesting and ongoing beneficial ownership support “skin in the game” while trading restrictions mitigate adverse signals .
- Performance sensitivity: Payouts scale with profitability and peer-relative returns; 2024 results (ROE 8.4%, TSR 33.3%) yielded mid-range payouts (80.1%) for recent PSU cycles, implying moderate upside if ROE expands or TSR percentile improves .
- Retention and pressure: No severance cash and multi-year vesting schedules create retention incentives; periodic vesting may create modest selling pressure for taxes, but anti-pledging/hedging and preclearance reduce risk of misaligned transactions .
- Governance: As a management trustee with no committee roles, independence concerns are mitigated by a strong independent committee framework and lead independent director oversight; majority voting and resignation policy add accountability .