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William Dellal

Vice President and Chief Financial Officer at TWO HARBORS INVESTMENT
Executive

About William Dellal

William Dellal, age 74, is Vice President and Interim Chief Financial Officer of Two Harbors Investment Corp. (TWO), appointed August 1, 2024; his interim tenure is scheduled to conclude May 5, 2025 with the CFO transition to Travis Swenson . He holds a B.A. (Economics) from Swarthmore College and a Ph.D. in Economics from MIT . TWO’s 2024 incentive framework emphasized total economic return (TER), with absolute TER at 8.9% (payout 99% of target) and relative TER at the 17.8th percentile (payout 0%), and the company reported a 7.0% total economic return on book value for 2024 including dividends; Dellal’s 2024 cash incentive was guaranteed and not tied to these metrics .

Past Roles

OrganizationRoleYearsStrategic Impact
Pagaya Technologies Ltd.Head of Monetization Strategy & OperationsJan–Jul 2024Led monetization strategy and operations
Caliber Home Loans, Inc.President2021–2022Oversaw Capital Markets and Treasury; worked on monetization and transition to Rithm/New Rez Mortgage
Caliber Home Loans, Inc.Chief Financial Officer2016–2021Led Finance, Capital Markets, Treasury; negotiated debt and borrowing activities
CitiMortgage, Inc.Managing Director & Head of Capital Markets2009–2016Led capital markets function

External Roles

  • No external public-company board roles for Dellal are mentioned in the August 1, 2024 Form 8-K or the 2025 proxy biography .

Fixed Compensation

Component2024 AmountNotes
Base salary$500,000Approved Aug 1, 2024 on appointment as Interim CFO
Salary paid (FY2024)$201,923Partial-year service
Target bonus %Not set; interim guaranteed cash incentive
Actual bonus paid$213,115Guaranteed; paid Q1 2025

Performance Compensation

Annual Incentive Plan Framework (Company-level, FY2024)

MetricWeightThresholdTargetMaximum2024 ActualPayout vs Target
Absolute TER50%1.0%9.0%>15.0%8.9%99%
Relative TER (vs peer group)50%25th %ile50th %ile80th %ile17.8th %ile0%
Strategic & operational goals30%Company- and individual goalsFramework established by Committee
  • Dellal’s 2024 annual cash incentive payout was $213,115 and was guaranteed due to his interim appointment; it was not contingent on performance metrics .

Long-Term Incentives

Award TypeGrant TimingGrant ValueVestingPerformance Linkage
RSUs (time-based)Q1 2025$500,000Ratable over 3 years (consistent with executives)None (time-based RSUs)
PSUs (performance-based)3-year performance periodAbsolute/Relative TSR; Dellal did not receive a 2024 LTI target
  • PSUs for other NEOs: 2022 PSU awards (performance period 2022–2024) paid out at 39.4% based on three-year absolute TSR of (24.2)% (0% payout) and relative TSR at the 39.4th percentile (78.9% payout) .

Equity Ownership & Alignment

ItemDetail
Beneficial ownership (3/19/2025)84 shares; <1% of outstanding common stock
Stock ownership guideline3× base salary; requirement $1,500,000 value
Ownership vs guideline (12/31/2024)Total value $991; below requirement; expected to reach within 5 years
Hedging/pledgingProhibited for executive officers; no hedging or pledging allowed
Vested vs unvestedAs of 12/31/2024, no unvested equity awards were outstanding for Dellal (pre-Q1’25 RSU grant)
Insider trading controlsPre-clearance required; strict insider trading policy

Employment Terms

  • Appointment: Interim CFO effective August 1, 2024; interim tenure ends May 5, 2025 upon appointment of Travis Swenson as CFO .
  • Employment agreement: None; not party to TWO’s Severance Benefits Plan due to interim nature .
  • Cash compensation: Base salary $500,000; guaranteed 2024 cash incentive $213,115, paid Q1 2025 .
  • Special termination payment: If removed without cause prior to August 1, 2025, entitled to $286,885 (payable Q1 2026) .
  • RSU award: $500,000 in RSUs to be granted in Q1 2025 with terms consistent with other executive officers (time-based vesting over 3 years) .
  • Restrictive covenants: Standard employee confidentiality agreement includes confidentiality, inventions assignment, non-disparagement, and non-solicitation provisions .
  • Change-of-control economics: Dellal is not covered by the Severance Benefits Plan; for equity granted under the 2021 Plan, double-trigger acceleration applies—full vesting of RSUs and assumed PSUs upon qualifying termination within 24 months of change-of-control if the resulting entity does not assume awards or upon qualifying termination post-assumption . As of 12/31/2024, Dellal had no outstanding equity, so the potential payments table shows only the special $286,885 payment upon involuntary termination without cause (non-CoC) .

Investment Implications

  • Alignment and retention: Dellal’s 2024 compensation was predominantly cash and guaranteed given interim status, limiting pay-for-performance linkage in that year; the Q1 2025 RSU grant begins to add equity alignment, with policies requiring retention of vested shares net of taxes until ownership guidelines are met (3× salary), which mitigates near-term selling pressure .
  • Severance/CoC exposure: Not eligible for TWO’s Severance Benefits Plan; outside of standard 2021 Plan equity acceleration mechanics, Dellal’s change-of-control cash economics are minimal, reducing golden parachute risk for this role .
  • Ownership posture: Beneficial ownership is de minimis (84 shares; $991 value vs $1.5m guideline), indicating low current “skin in the game” but policy-based accumulation expected within five years; hedging/pledging prohibitions further align interests .
  • Execution risk: Dellal’s background spans CFO/President roles at Caliber and capital markets leadership at CitiMortgage, with recent monetization work at Pagaya—useful for mortgage/servicing and financing execution at TWO; interim term ending May 2025 limits long-term retention risk specific to Dellal while ensuring continuity into the Swenson transition .