Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 63

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 63
---
 target amount is comprised of Absolute TSR PRSUs and one-half is comprised of Relative TSR PRSUs.

| MFA Financial, Inc. | 48 | 2025 Proxy Statement |

TABLE OF CONTENTS

In choosing the companies for the Relative TSR PRSUs against whose TSR the Company’s TSR will be measured over the course of the three-year performance period, the Compensation Committee selected the residential and commercial mortgage REITs and other mortgage finance firms the common stock of which was held by the iShares Mortgage Real Estate ETF (Symbol: REM) as of December 29, 2023. A list of these companies can be found on Appendix A to this Proxy Statement. We note that the companies selected by the Compensation Committee for the purposes of the Relative TSR PRSUs (which are the same companies that were used to determine the Relative DE ROAE Bonus paid to each of Mr. Knutson and Mr. Wulfsohn for 2024) are not the same as the companies identified on page 37of this Proxy Statement because TSR can be determined without regard to the availability of compensation information, which the Company’s externally-managed peers do not report and because the operations of the companies in the iShares Mortgage Real Estate ETF include mortgage finance activities that are not limited principally to residential mortgage finance. In addition, we note that companies that, during the three-year performance period, cease to be publicly traded companies will be removed from the group against which the Company’s TSR is ultimately evaluated at the end of the performance period. PRSUs that do not vest at the end of the performance period will be forfeited. Upon vesting, the executive will receive one share of the Company’s Common Stock for each PRSU that vests, provided that the fair market value of the shares of Common Stock delivered upon settlement may not exceed 400% of the grant date value of the PRSUs granted in respect of the completed performance period. Any PRSUs that vest are subject an additional one year deferral prior to settlement, subject to accelerated payout under certain circumstances.

| MFA Financial, Inc. | 49 | 2025 Proxy Statement |

TABLE OF CONTENTS

Dividend equivalents will not be paid on a current basis in respect of the PRSUs during the performance period. Rather, dividend equivalents will accrue with respect to the PRSUs during the performance period, and to the extent that the underlying PRSUs vest, an amount equal to the accrued dividend equivalents related to the vested PRSUs will be