Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 97

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 97
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 the number of shares of Common Stock that remained available for grants under the Existing Plan as of March 31, 2025 (assuming target performance of outstanding performance-based grants), plus |

| • | an additional 5,500,000 shares of Common Stock over the number of shares currently available for grants under the Existing Plan. |

Grants made after the date of this Proxy Statement, but prior to the Annual Meeting, will increase the number of shares subject to outstanding grant and consequently reduce the number of shares remaining available for grant under the Existing Plan; however, any such grants are not expected to be material in amount, either individually or in the aggregate. Shares of Common Stock subject to outstanding grants under the Existing Plan as of March 31, 2025, that are forfeited, expire or terminate without having been exercised or paid in shares of Common Stock may be returned to the Amended Plan and issued pursuant to grants made under the Amended Plan. The Board believes that the requested increase in the maximum number of shares that may be issued under the Existing Plan will ensure that we continue to have a sufficient number of shares with which to achieve our compensation strategy and allow for growth. When deciding on the number of shares to be available for grants under the Amended Plan, the Compensation Committee considered a number of factors, including our past share usage (“burn rate”), the number of shares needed for future grants, the ability to recycle under the Amended Plan certain shares withheld for tax purposes, a dilution analysis, the current and future accounting expenses associated with our equity award practices and input from an outside consultant. The Compensation Committee also considered the number of shares currently available for future grants under the Existing Plan, which is 3,536,231 shares, assuming “target” performance of outstanding performance-based grants and 1,156,704 shares assuming maximum performance of outstanding performance-based grants. Dilution Analysis As of March 31, 2025, we had 102,652,862 shares of Common Stock outstanding. 3,536,231 shares of Common Stock remained available for grants under the Existing Plan as of March 31, 2025 (assuming “target” performance of outstanding performance-based grants). The proposed share authorization is a request for 5,500,000 additional shares of Common Stock to be available for grants made under the Amended Plan. The table below shows our potential dilution (referred to as “overhang”) levels, based on our “Total Potential Overhang,” which includes our request for 5,