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Equity Compensation Plans | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Equity Compensation Plans | Equity Compensation Plans During the second quarter of 2023, Redwood shareholders approved an additional 9,650,000 shares of common stock for grant under our Incentive Plan. At September 30, 2023 and December 31, 2022, 12,268,074 and 2,896,604 shares of common stock, respectively, were available for grant under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock, and purchases under the Employee Stock Purchase Plan, totaled $30 million at September 30, 2023, as shown in the following table. Table 19.1 – Activities of Equity Compensation Costs by Award Type
|  |  |  |  |  | Nine Months Ended September 30, 2023
(In Thousands) |  |  |  |  |  | Restricted Stock Units |  | Deferred Stock Units |  | Performance Stock Units |  | Employee Stock Purchase Plan |  | Total
Unrecognized compensation cost at beginning of period |  |  |  |  |  | $ | 5,068 |  |  | $ | 19,849 |  |  | $ | 15,271 |  |  | $ | — |  |  | $ | 40,188 |
Equity grants |  |  |  |  |  | 2,092 |  |  | 6,865 |  |  | — |  |  | 422 |  |  | 9,379 |
Performance-based valuation adjustment |  |  |  |  |  | — |  |  | — |  |  | (3,205) |  |  | — |  |  | (3,205) |
Equity grant forfeitures |  |  |  |  |  | (1,088) |  |  | (719) |  |  | — |  |  | — |  |  | (1,807) |
Equity compensation expense |  |  |  |  |  | (2,411) |  |  | (8,911) |  |  | (2,895) |  |  | (318) |  |  | (14,535) |
Unrecognized Compensation Cost at End of Period |  |  |  |  |  | $ | 3,661 |  |  | $ | 17,084 |  |  | $ | 9,171 |  |  | $ | 104 |  |  | $ | 30,020 |
At September 30, 2023, the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Units ("RSUs") At September 30, 2023 and December 31, 2022, there were 585,284 and 806,119 RSUs outstanding, respectively. During the nine months ended September 30, 2023, there were 263,590 RSUs granted, 354,813 RSUs distributed, and 129,612 RSUs forfeited. Unvested RSUs at September 30, 2023 vest through 2027. Deferred Stock Units (“DSUs”) At September 30, 2023 and December 31, 2022, there were 4,896,376 and 4,831,338 DSUs outstanding, respectively, of which 2,700,517 and 2,495,787, respectively, had vested. During the nine months ended September 30, 2023, there were 936,206 DSUs granted, 821,046 DSUs distributed, and 50,122 DSUs forfeited. Unvested DSUs at September 30, 2023 vest through 2027. Performance Stock Units (“PSUs”) At September 30, 2023 and December 31, 2022, the target number of PSUs that were unvested was 2,078,171 and 2,354,002, respectively. Vesting for PSUs generally occurs three years from their respective grant dates based on various total shareholder return performance calculations, as discussed in Note 19 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. For 275,831 target PSU awards that were granted in December 2019, the performance vesting period ended on January 1, 2023. These 2019 PSU awards failed to reach a threshold level under their performance-based vesting criteria and resulted in the vesting of no shares of our common stock underlying these PSUs. During the nine months ended September 30, 2023, for PSUs granted in 2021 and 2020, we adjusted the cumulative expected amortization expense down by $3 million to reflect our revised vesting estimate regarding the vesting of these awards in relation to the book value TSR performance condition for the second-year vesting tranche of the 2021 PSU grant and the third-year vesting tranche of the 2020 PSU grant. Employee Stock Purchase Plan ("ESPP") The ESPP allows a maximum of 850,000 shares of common stock to be purchased in aggregate for all employees. As of September 30, 2023 and December 31, 2022, 739,404 and 657,777 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at September 30, 2023.

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