Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 291

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 291
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2024Fixed compensation expense (1)$15,702 $12,847 $46,561 $42,177 Annual variable compensation expense6,623 6,631 18,926 13,599 Long-term incentive award expense (2)5,828 7,839 17,109 21,664 Systems and consulting4,700 3,398 12,467 9,853 Office costs1,767 1,720 5,641 5,878 Accounting and legal1,034 1,087 4,149 3,093 Corporate costs905 865 2,573 2,722 Other2,148 1,621 5,735 4,875 Total General and Administrative Expenses$38,707 $36,008 $113,161 $103,861 (1)Includes $2 million of severance and transition-related expenses for the nine months ended September 30, 2024.(2)For the three months ended September 30, 2025 and 2024, long-term incentive award expense included $5 million and $4 million of expense, respectively, for awards settleable in shares of our common stock, and $1 million and $3 million of expense, respectively, for awards settleable in cash. For the nine months ended September 30, 2025 and 2024, long-term incentive award expense included $14 million and $16 million of expense, respectively, for awards settleable in shares of our common stock, and $3 million and $6 million of expense, respectively, for awards settleable in cash.For additional information related to cash-settled long-term incentive awards, see Note 14 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Note 23. Taxes

The Company's effective income tax rate differs from the federal corporate tax rate of 21.0%, primarily as a result of state taxes and REIT GAAP income not subject to federal income tax.The Company's effective tax rate was (23.6)% and 17.2% for the nine months ended September 30, 2025 and 2024.We assessed our tax positions for all open tax years (i.e., Federal, 2021 to 2025, and State, 2020 to 2025