Company: CHMI-PB
Filing Date: 2025-04-21
Form Type: DEF 14A
Source: 0001140361-25-014748
Chunk: 32

Company: Cherry Hill Mortgage Investment Corp
Filing Date: 2025-04-21
Form: DEF 14A
Chunk 32
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 2024, we completed an “Internalization Event” within the meaning of the Management Agreement with CHMM by, among other things, directly hiring the senior management team and other personnel who had historically been employed by Freedom Mortgage and provided services to us through CHMM. Retaining these personnel was crucial to our business continuity, as their extensive knowledge of our operations and established relationships within the company and with our counterparties ensured a seamless transition to internal management, maintained the stability and efficiency of our business processes and positioned us to effectively realize the benefits of the Internalization. Upon consummation of the Internalization, we ceased being externally managed and began operating as a fully integrated, internally managed company. In connection with the Internalization, each of our NEOs resigned from Freedom Mortgage, and Mr. Lown and Mr. Hutchby, both of whom were serving as officers of CHMM prior to the Internalization, resigned from their positions with CHMM. Each of our NEOs commenced employment with us on November 14, 2024. Each NEO is an employee at will, and his employment with us can be terminated for any reason.

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TABLE OF CONTENTS As part of our transition to being an internally managed company, the Compensation Committee sought to ensure that compensation structures continued to incentivize and retain key personnel while positioning us for long-term success. To that end, the Compensation Committee decided to maintain 2024 compensation levels for our NEOs through 2025 in order to retain our NEOs during a critical transition period for our company. Pursuant to their employment arrangements with us, until December 31, 2025, Mr. Lown will receive an initial annual base salary of $1,235,000, Mr. Hutchby will receive an initial annual base salary of $600,000 and Mr. Evans will receive an initial annual base salary of $550,000. Mr. Evans was also eligible to receive a discretionary cash bonus of $275,000, which we paid to Mr. Evans in March 2025. Each of our NEOs was paid the same amount and form of compensation as was previously paid to him in connection with his prior employment arrangement with Freedom Mortgage. We believe this approach will ensure their continued commitment and support of our NEOs during this pivotal time. In March 2025, the Board, based on the recommendation of the Compensation Committee, approved and adopted the Cherry Hill Mortgage Investment Corporation Executive Severance Plan (the “Executive Severance Plan”). The Executive Severance Plan covers regular full-time employees