Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 47

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 47
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ic Bonus”) for Messrs. Knutson and Wulfsohn was equal to 75% of his Overall Target Bonus. Based on his Overall Target Bonus, for the 2024 Performance Period Mr. Knutson’s Target Formulaic Bonus was $1,500,000, with 30% ($450,000) of the Target Formulaic Bonus allocated to the Adjusted GAAP ROAE Bonus, 30% ($450,000) allocated to the Distributable Earnings ROAE Bonus and 40% ($600,000) allocated to the Relative DE ROAE Bonus. Similarly, based on Mr. Wulfsohn’s Overall Target Bonus, for the 2024 Performance Period his Target Formulaic Bonus was $825,000, with 30% ($247,500) of the Target Formulaic Bonus allocated to the Adjusted GAAP ROAE Bonus, 30% ($247,500) allocated to the Distributable Earnings ROAE Bonus and 40% ($330,000) allocated to the Relative DE ROAE Bonus. Each of Mr. Knutson’s and Mr. Wulfsohn’s respective employment agreement provides that he is eligible to receive from zero to 200% of his Target Formulaic Bonus. Calculation of Adjusted GAAP ROAE. For the 2024 Performance Period, the determination of the Adjusted GAAP ROAE Bonus was based on a methodology that reflects certain adjustments to the Company’s GAAP net income and GAAP stockholders’ equity. For purposes of determining the 2024 Adjusted GAAP ROAE Bonus, “Adjusted GAAP ROAE” was calculated by dividing (i) our net income available to common stockholders and participating securities for the 2024 Performance Period as determined in accordance with GAAP (but excluding the impact of certain non-cash expense items such as depreciation, amortization of intangible assets and such other non-cash expense items as may be determined by the Compensation Committee of the Board) (“Adjusted GAAP Earnings”) by (ii) our average total stockholders’ equity (based on stockholders’ equity as of the last day of each month during the performance period) as determined in accordance with GAAP (but excluding accumulated other comprehensive income (or loss), stockholders’ equity attributable to preferred stock, goodwill and intangible assets and such other items as may be determined by the Compensation Committee) (“Adjusted Average Equity”). Calculation of Adjusted Distributable Earnings ROAE. The determination of the Distributable Earnings