Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 30

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 30
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’s target compensation at the outset of 2024 – with annual bonus realization based on 2024 returns and PSU value realization driven by book value TSR and relative TSR over the 2024-2026 three-year period. 
 Limited Fixed Compensation:Fixed elements (salary and benefits) represented approximately 15% of the CEO’s target compensation at the outset of 2024.                                                                                                                                                                                                           |     |                                                                                                                                                                                                                                                                                                                                                             |
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 *The CEO’s target annual compensation at the outset of 2024 was comprised of the following elements: base salary of $950,000; target 2024 annual bonus of $1.9 million; $94,917 value of benefits; PSUs awarded at year-end 2023 with a grant date value of $2.3 million; and DSUs/csRSUs awarded at year-end 2023 with a grant date value of $1.8 million. 
 Discussion of the CEO’s LTI awards granted at year-end 2024 and other elements of the CEO’s target annual compensation at the outset of 2025 are set forth below under “CEO’s Target Compensation Structure – Outset of 2025.”                                                                                                                              |

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| REDWOOD’S 2024 ANNUAL FINANCIAL PERFORMANCE |

Key Financial Performance and Return Metrics Redwood’s business includes two mortgage banking platforms – Sequoia and CoreVest – that originate and/or transact in residential mortgage loans. These operating businesses generate mortgage banking revenue and create investments to hold as portfolio assets. Investments that Redwood creates, together with other mortgage- and housing-related assets Redwood invests in, comprise the Redwood Investments portfolio that Redwood manages and through which it generates interest income and gains. Based on this business model, the Committee has viewed GAAP and non-GAAP return-on-equity metrics as highly relevant to measuring annual performance and driving annual bonus realization for executives, while stockholder return metrics, including book value TSR (bvTSR), as well as absolute TSR and relative TSR (rTSR), are drivers of vesting and value realization from executives’ long-term equity-based incentive compensation. As further described in the full CD&A that follows, measurement of Redwood’s financial performance using these types of metrics is structurally incorporated into Redwood’s executive compensation program, along with consideration of operational metrics and satisfaction of other business, risk-management and strategic objectives that we believe will drive profitable and sustainable growth.