Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 129

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 129
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 reported within the CD&A section of this proxy statement and is further

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discussed and reconciled to return on equity determined in accordance with GAAP within Annex A to this Proxy Statement.

Adjusted EAD ROE – Methodology for Determining Annual Bonus Realization . As noted above, for 2024, the Committee determined that 50% of the target amount of the financial performance component of annual bonuses would be realized based on 2024 Adjusted EAD ROE relative to a 6.5% target level of Adjusted EAD ROE performance established by the Committee in the first quarter of 2024.

• Target-Level Performance : If 2024 Adjusted EAD ROE equaled 6.5%, then 100% of the target amount of annual bonus for this sub-component of annual bonus would be realized by each NEO.

• Below Target-Level Performance : If 2024 Adjusted EAD ROE was between 1.625% and 6.5%, then between 25% and 100% of the target amount of annual bonus for this sub-component of annual bonus would be realized by each NEO (based on a straight-line, mathematical interpolation).

• Above Target-Level Performance : If 2024 Adjusted EAD ROE was above 6.5%, then above-target bonus for this sub-component of annual bonus would be realized by each NEO based on the following (using straight-line, mathematical interpolation): for each incremental percentage point of Adjusted EAD ROE performance above 6.5%, an additional 27.75% of target bonus for this sub-component of annual bonus would be realized.

• Maximum Annual Bonus . As described in CD&A section of this Proxy Statement, each NEO was subject to a maximum annual bonus cap for 2024, such that the sum of the individual performance component of annual bonus, together with the realization of the company financial performance component of annual bonus (which is realized based on an equal weighting of Adjusted EAD ROE and Adjusted ROE performance), could not exceed 3.0x of such NEO’s target annual bonus.

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