Company: NLY-PF
Filing Date: 2025-05-06
Form Type: DEFA14A
Source: 0001104659-25-045048
Chunk: 2

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-05-06
Form: DEFA14A
Chunk 2
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January 10, 2025 issue). Used with permission.

2MSR assets include unsettled MSR commitments of $385mm. MSR commitments represent the market value of deals where Annaly has executed a letter of intent. There can be no assurance whether these deals will close or when they will close.

| § | Increased the difficulty required to receive a payout under the corporate scorecard and reduced the payout                             
 percentage for achieving the minimum performance threshold from 80% to 50% of target, as well as increased the likelihood of receiving 
 a 0% payout by removing the scorecard’s scaling feature                                                                                |

| § | Declined to raise named executive officer (“NEO”) pay targets from their 2023 levels |

Additional Executive Compensation
Enhancements for 2025

The MDC Committee simultaneously
committed to a broader redesign of our executive compensation program for 2025, with changes including:

| § | Removed the Absolute Tangible Economic Return modifier and instead incorporated Absolute Tangible Economic 
 Return directly into the scorecard as a new metric                                                         |

| § | Removed the Operational Risk metric from the scorecard, resulting in a fully quantitative and objective   
 scorecard, and instead Operational Risk achievements considered as part of an NEO’s individual assessment |

| § | Bifurcated the annual cash incentive and equity incentive determinations to reduce both an NEO’s                                 
 maximum incentive opportunity and their actual payout in strong performance years, as equity incentives will be capped at target |

| § | Increased the amount of total compensation received in the form of equity, such that the CEO will now                                    
 receive 55% of his total compensation (including base salary and cash and equity incentives) in the form of equity (up from 50%) and the 
 other NEOs will receive 50% of their total compensation in the form of equity (up from an average of 44%)                                |

| § | Increased the percentage of performance stock units received by NEOs to 60% of their target equity 
 (up from 50%)                                                                                      |

| § | Declined to raise NEO pay targets for a second consecutive year |

| § | Rebalanced the scorecard metrics such that they are comprised of 60% absolute performance metrics (up 
 from 50%) and 40% relative performance metrics (down from 50%)                                        |

Delivering for Our Stockholders

The Company continued to allocate
capital across the residential housing finance market in 2024, generating strong earnings and enhancing our position as the largest dedicated
housing finance