Share-Based Compensation

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Abstract]

Note 22—Share-Based Compensation

The Company has an equity incentive plan that provides for the issuance of equity based awards based on Common Shares that may be made by the Company to its officers and trustees, and the members, officers, trustees, directors and employees of PCM, PFSI, or their affiliates and to PCM, PFSI and other entities that provide services to PMT and the employees of such other entities.

The equity incentive plan is administered by the Company’s compensation committee, pursuant to authority delegated by PMT’s board of trustees, which has the authority to make awards to the eligible participants referenced above, and to determine what form the awards will take, and the terms and conditions of the awards.

The equity incentive plan allows for the grant of restricted and performance-based share and unit awards.

The shares underlying award grants will again be available for award under the equity incentive plan if:

•

any shares subject to an award granted under the equity incentive plan are forfeited, canceled, exchanged or surrendered;

•

an award terminates or expires without a distribution of shares to the participant; or

•

shares are surrendered or withheld by PMT as payment of either the exercise price of an award and/or withholding taxes for an award.

Restricted share units have been awarded to trustees and officers of the Company and to other employees of PFSI and its subsidiaries at no cost to the grantees. Such awards generally vest over a one- to three-year period.

The following table summarizes the Company’s share-based compensation activity:


	Quarter ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(in thousands)
Grants:
Restricted share units		—		6		199		182
Performance share units		—		—		168		140
		—		6		367		322
Grant date fair value:
Restricted share units	$	—	$	83	$	2,815	$	2,605
Performance share units		—		—		2,365		2,007
	$	—	$	83	$	5,180	$	4,612
Vestings:
Restricted share units		6		15		144		164
Performance share units (1)		—		—		91		203
		6		15		235		367
Forfeitures:
Restricted share units		—		3		—		3
Performance share units		—		4		—		4
		—		7		—		7
Compensation expense relating to share-based grants	$	838	$	827	$	1,801	$	2,192

(1)

The actual number of performance-based restricted share units (“RSUs”) that vested during the six months ended June 30, 2025 was approximately 89% of the 103,081 originally granted performance-based RSUs.


	June 30, 2025
	Restricted share units		Performance share units
Shares expected to vest:
Number of restricted shares units (in thousands)		291		279
Grant date average fair value per unit	$	14.06	$	14.05