Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 61

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 61
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 and Mr. Schwartz . Each of Mr. Roper, Ms. Samuels and Mr. Schwartz is eligible to receive an annual performance bonus in such amount as approved by the Compensation Committee after receiving the input of our CEO. Annual

| MFA Financial, Inc. | 47 | 2025 Proxy Statement |

TABLE OF CONTENTS incentive compensation for these executives is based upon subjective assessments and evaluation of MFA’s annual performance and each executive’s individual performance. To guide the Compensation Committee in determining the levels of Mr. Roper’s, Ms. Samuels’ and Mr. Schwartz’s respective bonus for the 2024 Performance Period, it used as a framework a methodology that was similar to the methodology that it used to determine the annual bonus amount for Mr. Knutson and Mr. Wulfsohn. In this regard, the Compensation Committee, with the input of Mr. Knutson, assumed a hypothetical “target” overall bonus for each of Mr. Roper and Mr. Schwartz of $600,000 and a hypothetical “target” overall bonus for Ms. Samuels of $400,000. The Compensation Committee then employed an illustrative scenario in which 50% of each executive’s hypothetical target would be based on the three components of the Formulaic Bonus and 50% would be tied to an assessment of the executive’s individual performance and overall company performance. As this approach was a framework for its decision making, the Compensation Committee then used its judgment and discretion to adjust the outcome to arrive at the actual amount of each executive’s bonus. The Compensation Committee believes that using a discretionary (rather than largely formulaic) approach for the determination of Mr. Roper’s, Ms. Samuels’ and Mr. Schwartz’s bonus is appropriate in light of their not having ultimate responsibility for the Company’s investment decisions or management of its investment portfolio. Nonetheless, the Compensation Committee believes that, reflective of their positions as among the most senior executives of the Company, it is appropriate that their bonuses be informed by and aligned with not only their individual performance, but also with the financial performance of the Company. In this regard, in determining Mr. Roper’s, Ms. Samuels’ and Mr. Schwartz’s bonus, the Compensation Committee referred to the Formulaic Bonus structure used in the determination of Mr. Knutson’s and Mr. Wulfsohn’s annual bonuses. After receiving the input of Mr. Knutson, the Compensation Committee approved an annual incentive bonus to Mr. Roper of $925,000 for the