v3.26.1
Share-Based Compensation
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

Note 22—Share-Based Compensation

The Company’s equity incentive plan provides for the issuance of equity awards to the Company’s officers and trustees, as well as to employees and officers of PFSI and its affiliates and other entities or persons that provide services to the Company.

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 equity awards to the eligible participants referenced above, and to determine what form the equity awards will take, and the terms and conditions of the equity awards.

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

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

any shares subject to an equity award granted under the equity incentive plan are forfeited, canceled, exchanged or surrendered;
an equity award terminates or expires without a distribution of shares to the participant; or
shares are surrendered or withheld by PMT as payment of withholding taxes for an equity award.

Restricted share units and performance-based unit equity awards have been awarded to officers and trustees of the Company and to other employees and officers of PFSI and its affiliates 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 March 31,

 

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Grants:

 

 

 

 

 

 

Restricted share units

 

 

321

 

 

 

199

 

Performance share units

 

 

287

 

 

 

168

 

 

 

608

 

 

 

367

 

Grant date fair value:

 

 

 

 

 

 

Restricted share units

 

$

3,897

 

 

$

2,815

 

Performance share units

 

 

3,492

 

 

 

2,365

 

 

$

7,389

 

 

$

5,180

 

Vestings:

 

 

 

 

 

 

Restricted share units

 

 

178

 

 

 

138

 

Performance share units (1)

 

 

101

 

 

 

91

 

 

 

279

 

 

 

229

 

Forfeitures:

 

 

 

 

 

 

Restricted share units

 

 

1

 

 

 

 

Performance share units

 

 

1

 

 

 

 

 

 

2

 

 

 

 

Compensation expense relating to share-based grants

 

$

1,099

 

 

$

963

 

(1)
The actual number of performance-based restricted share units (“RSUs”) that vested during the quarter ended March 31, 2026 was approximately 79% of the 128,212 originally granted performance-based RSUs.

 

 

 

March 31, 2026

 

 

 

Restricted share units

 

 

Performance share units

 

Shares expected to vest:

 

 

Number of restricted shares units (in thousands)

 

 

432

 

 

 

437

 

Grant date average fair value per unit

 

$

12.72

 

 

$

12.84