Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 33

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 33
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 Positioning:                                                                                                                                                                                                                                                                                                                                                                                         
 ▪Through actions noted above, significantly enhanced overall capital, liquidity and financing position, supporting forward-looking growth objectives for our mortgage banking businesses and future capital deployment opportunities for our Redwood Investments portfolio.                                                                                                                                                               
 ▪Investments made in 2024 were focused on generating strong returns and contributing to stockholder value over both the near- and long-term.                                                                                                                                                                                                                                                                                              |

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| CEO’S BONUS REALIZATION – 2024 |

CEO’S Annual Bonus Realization – 2024 Our CEO’s 2024 annual bonus was earned primarily based on performance against financial targets designated by the Committee at the outset of 2024, as well as achievement of pre-established strategic, operational and related goals.

| Key Highlights CEO’S 2024 Annual Bonus Realization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Overall Below-Target Bonus Realization:Overall, the CEO’s realized bonus of $1.57 million for 2024 represented 83% of his target bonus amount, primarily due to below-target financial performance.                                                                                                                                                                                                                                                                                                                                                                                 
 Below-Target Company Financial Performance:Financial performance for 2024 was below target, resulting in only 67% of target amount being realized for this component of annual bonus.                                                                                                                                                                                                                                                                                                                                                                                               
 ▪In particular, Redwood’s 2024 financial performance fell short of the Committee’s Adjusted ROE target for 2024 of 11.5% and its Adjusted EAD ROE target for 2024 of 6.5%.(15)A further discussion of these non-GAAP financial performance measures and the Committee’s process for setting these target performance levels is set forth within the full CD&A that follows.                                                                                                                                                                                                         
 Above-Target Individual Performance:While market conditions impacted the ability of the Company to meet the financial performance targets established by the Committee, actions taken by management in 2024 relating to strategic, operational and risk-management goals had both near- and long-term benefits that should positively impact future returns. As a result, the individual performance component of the CEO’s bonus in 2024 was realized above target based on the Committee’s assessment of strong performance relating to strategic, operational and related goals. 
 ▪A summary of strategic, operational and related achievements during 2024 that supported this level of realization for the individual performance component of annual bonus is set forth on the preceding pages of this Executive Summary.                                                                                                                                                                                                                                                                                                                                          |     |