Company: TWO-PC
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001465740-25-000090
Chunk: 62

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 62
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 years shown. See also “ Pay Versus Performance Supplemental Information — Relationship of Net Income to Compensation Actually Paid ” on page 54 below for further information.

(8) We have designated relative total economic return (rTER)as our company selected measure for this table. We believe this additional financial measure represents the most important financial performance measure used by the company in its annual incentive compensation plan to link Compensation Actually Paid to our named executive officers for the 2024 performance year. As used in our annual incentive compensation plan, rTER compares our total economic return for the 12-month performance period ended September 30 to the total economic return of our performance group peers, however, in accordance with Regulation S-K, we have computed rTER for purposes of this table based on the year ended December 31 for each year reported. For further information on our annual cash incentive plan and how we use rTER as a performance metric in our compensation program, please refer to the section titled “ Annual Incentive Compensation ” above on page 29 . The companies included in our performance peer group for 2024 are included in the section titled “ Peer and Competitive Market Positioning" above on page 36 . AAIC was not included in our peer group for 2024 because AAIC was acquired by EFC in December 2023 and was delisted in connection with such acquisition. For 2023, the performance peer group companies were NLY, AGNC, IVR, PMT, DX, RITM, ARR, ORC, CHMI, AAIC and EARN. For 2022, the performance peer companies were NLY, AGNC, IVR, PMT, DX, RITM, CIM, MITT, ARR, ORC, CHMI, AAIC, EFC, NYMT, RWT, MFA and WMC. For 2021 and 2020, the performance peer companies were NLY, AGNC, IVR, PMT, DX, EARN, RITM, CIM, MITT, ARR, ORC, CHMI, AAIC, EFC, NYMT, RWT, MFA and WMC.

Pay Versus Performance Supplemental Information

While the Compensation Committee uses several performance measures to align executive compensation with company performance, including TER and 3-year TSR on absolute and relative bases, not all of those performance measures are presented in the Pay Versus Performance table and, therefore, the company’s

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