Phillip Silverman
About Phillip Silverman
Phillip Silverman, age 35, is Chief Financial Officer, Treasurer and Secretary of Chicago Atlantic Real Estate Finance, Inc. (REFI), serving as CFO since March 2024 after previously serving as Interim CFO from September 2022 to March 2024; he became an executive officer in 2022. He is a licensed Certified Public Accountant with a B.S. in Finance from Indiana University’s Kelley School of Business, and has deep expertise in financial reporting, operations, and internal controls within the asset management industry . Company net income was $38.71M in FY 2023 and $37.05M in FY 2024 .
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Net Income (USD) | $38,710,248 | $37,045,403 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Chicago Atlantic Real Estate Finance, Inc. | Chief Financial Officer | Mar 2024–present | Oversees corporate finance, reporting and controls; principal financial officer |
| Chicago Atlantic Real Estate Finance, Inc. | Interim Chief Financial Officer | Sep 2022–Mar 2024 | Led financial reporting and internal control processes during transition |
| Chicago Atlantic Real Estate Finance, Inc. | Controller | Jun 2021–Sep 2022 | Built reporting rigor and operational finance processes |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Chicago Atlantic Group, L.P. (Manager) | Chief Financial Officer | Jun 2021–Sep 2022 | CFO at REFI’s external manager; alignment with REFI’s management agreement and reimbursable expenses |
| BDO USA, LLP | Senior Manager, Financial Services & Private Equity Group | 8+ years, through Jun 2021 | Led end-to-end audits of PE/VC funds, SBICs, BDCs, and asset managers |
Fixed Compensation
- Externally managed structure: REFI has no employees; executive officers (including CFO) are employed and compensated by the Manager (Chicago Atlantic REIT Manager, LLC) and/or its affiliates. REFI reimburses the Manager for a fair and equitable allocable share of compensation (base salary, bonus, benefits, taxes) based on time devoted to REFI; investment professionals’ salaries are not reimbursed .
- Equity awards may be granted directly by REFI under the 2021 Omnibus Incentive Plan; as of 12/31/2024, 670,588 shares remained available for issuance .
| Manager Fees & Reimbursements | FY 2023 | FY 2024 |
|---|---|---|
| Base management fees, net | $4,046,398 | $4,138,401 |
| Incentive fees | $4,736,436 | $3,923,495 |
| G&A reimbursable to Manager | $4,799,210 | $4,821,373 |
| Total | $13,582,044 | $12,883,269 |
Performance Compensation
- Equity awards (restricted stock) are time-based (service vesting) under the 2021 Omnibus Incentive Plan; no performance metric weighting or payout formulas are disclosed for these awards .
| Grant Date | Shares | Instrument | Vesting Schedule |
|---|---|---|---|
| Dec 10, 2021 | 9,375 | Restricted Stock | 3-year vesting: one-third after 12 months; one-eighth after quarter ended Mar 31, 2023; one-eighth quarterly thereafter |
| Jun 1, 2023 | 11,500 | Restricted Stock | 3-year vesting: one-third at 12, 24, and 36 months |
| Apr 1, 2024 | 5,717 | Restricted Stock | 3-year vesting: one-third at 12, 24, and 36 months |
| Apr 1, 2025 | 8,933 | Restricted Stock | 3-year vesting: one-third at 12, 24, and 36 months |
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Time-based service (RSAs) | N/A (time-based) | N/A | N/A | N/A | Per award schedules above |
Equity Ownership & Alignment
| Ownership Detail | As of | Value |
|---|---|---|
| Beneficial ownership (Phillip Silverman) | Apr 4, 2025 | 38,285 shares; includes 35,585 restricted shares (see grant summary) |
| % of Shares Outstanding | Apr 4, 2025 | * Less than 1% (total shares outstanding 20,967,457) |
| Awards Authorized under 2021 Plan | Dec 31, 2024 | 670,588 shares available for issuance |
- Hedging and pledging: Insider policy prohibits short-term/speculative trading and derivatives; hedging/monetization transactions require pre-approval; pledging in margin accounts is prohibited; pledging as collateral for a non-margin loan may be permitted only with pre-approval and demonstrable capacity to repay without resort to pledged securities .
- Clawback: REFI has adopted a Dodd-Frank-compliant compensation recovery policy (filed as Exhibit 97 to the 2024 Form 10-K) .
Employment Terms
- Employment: CFO is employed by the external Manager; REFI reimburses the Manager for a fair and equitable allocable share of officer compensation tied to time spent on REFI’s affairs; investment professionals’ salaries are not reimbursed .
- Indemnification: Officers have indemnification agreements on file (Form of Indemnification Agreement listed among 10-K exhibits) .
- Officer designations and certifications: Silverman serves as CFO (principal financial officer) and signs SOX 302 and 906 certifications and 10-Q/10-K signatures .
- Clawback/Hedging/Pledging: Compensation recovery policy in place and insider trading policy restricts hedging/pledging, as above .
Investment Implications
- Pay-for-performance transparency is limited by the external management structure; REFI reimburses the Manager for a share of executive compensation rather than disclosing individual officer cash pay, shifting investor focus to equity grants for alignment .
- Silverman’s direct “skin in the game” is modest (less than 1% ownership), though ongoing restricted stock grants create retention incentives; upcoming scheduled vest tranches can incrementally increase freely tradable shares over time .
- Governance mitigants include a formal Dodd-Frank clawback policy and strict insider trading/hedging/pledging restrictions, reducing misalignment and reputational risk .
- Absent disclosed performance-vested equity or option plans tied to TSR/EBITDA/revenue goals, current incentives appear primarily service-vesting; monitoring capital allocation discipline, credit underwriting outcomes, and net income trend under Silverman’s tenure remains key for assessing execution risk .