Bradley L. Radoff, described as a significant shareholder of Redwood Trust, Inc. (NYSE: RWT), has sent an open letter to the company's board of directors urging it to hire an investment banker and begin a formal sale process, according to a statement released Sept. 14, 2026.

Radoff cited two primary concerns in his letter. The first relates to the company's recent refinancing, which he characterized as either an attempt to dilute shareholders or evidence of management incompetence. The second concerns executive compensation, which he described as misaligned with shareholder outcomes.

According to Redwood Trust's proxy filing dated March 31, 2026, named executive officers received total compensation of $21.3 million in fiscal year 2025. The average total compensation for all current named executive officers over the past three years was $24.3 million. Radoff also noted, citing company Form 4 filings, that the only open-market stock purchase by an executive officer over the past four years was made in 2024 by CFO Brooke Carillo.

Radoff stated his belief that multiple strategic parties would be interested in acquiring Redwood Trust if a formal sale process were launched. He argued the company trades at a persistent discount to intrinsic value and that remaining a standalone public entity is not in shareholders' best interests.

If the board declines to initiate a strategic review, Radoff said he intends to nominate an alternative slate of director candidates for election at the 2027 annual shareholder meeting.