Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 56

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 56
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4 annual base salary for Mr. Stone, Redwood’s Executive Vice President and Chief Legal Officer, increased from $450,000 to $500,000.

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#### 2024 Performance-Based Annual Bonus Compensation
Redwood’s annual bonus program is designed to reward executive officers based on Redwood’s financial performance and each executive officer’s individual performance. In accordance with the Committee’s executive compensation philosophy, and the pay-for-performance structure of Redwood’s executive compensation program, there has been significant variability in the performance-based annual bonuses paid to Redwood’s CEO over the past ten years, reflecting the variations in Redwood’s compensation program and financial performance over the same period.

Set forth below is a description of the components of the 2024 performance-based annual bonus compensation for Redwood’s executive officers, including a description of the financial performance metrics and targets used within the bonus program’s structure.

Components of 2024 Annual Bonuses . In order to align executives’ interests with the interests of stockholders, in the first quarter of 2024 the Committee determined, after consultation with its independent compensation consultant, that 2024 target annual bonuses for executive officers would continue to be weighted as follows:

◦ Company/Financial Performance Component . 75% on the achievement of predetermined target levels of Redwood’s financial performance for 2024; and

◦ Individual Performance Component . 25% on individual contributions to the Company’s pre-established annual strategic, business, operational and risk management goals and objectives for 2024.

The weightings described above were used so that most of an executive officer’s target annual bonus will depend directly on company financial performance, while also providing incentives for achievement of individual strategic, business, operational and risk management goals that the Committee believes are in the interests of Redwood and its stockholders, but in some cases may be difficult to quantitatively link to annual company financial performance.

Financial Performance Metrics for 2024 Annual Bonuses . Also during the first quarter of 2024, after a review of Redwood’s compensation program, and following consultation with its independent compensation consultant, the Committee determined to continue to use two different non-GAAP financial performance metrics in 2024 within the methodology for determining realization of each executive officer’s performance-based annual bonus. In the process of reaching its conclusion to continue using these two financial performance metrics for 2024 – namely, Adjusted ROE and Adjusted EAD ROE 1 – each of which is further described below, the Committee considered