Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 52

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 52
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) for the 2024 Performance Period would be 9.25% (calculated as described above), which reflected an increase of 1.00% over the Adjusted Distributable Earnings ROAE Target for the 2023 performance period. |

| • | No Distributable ROAE Earnings Bonus would be earned if Adjusted Distributable Earnings ROAE was less than 5.5% (the “threshold” Adjusted Distributable Earnings ROAE level) for the 2024 Performance Period, which reflected no change from the threshold performance level for this metric for the 2023 performance period. |

| • | The maximum Distributable Earnings ROAE Bonus (i.e., 200% of the target Distributable Earnings ROAE Bonus) for each executive would be earned to the extent that Adjusted Distributable Earnings ROAE was in excess of 13.25% for the 2024 Performance Period, as compared to a level of 13.50% for the analogous metric for the 2023 performance period. |

| MFA Financial, Inc. | 42 | 2025 Proxy Statement |

TABLE OF CONTENTS

To the extent that MFA’s Adjusted Distributable Earnings ROAE for the 2024 Performance Period were to be greater than the threshold Adjusted Distributable Earnings ROAE level of 5.5% but less than 13.25%, then the executive would be paid a multiple of between zero and two times his target Distributable Earnings ROAE Bonus, with the executive being paid the target amount ($450,000 in the case of Mr. Knutson and $247,500 in the case of Mr. Wulfsohn) to the extent that MFA’s Adjusted Distributable Earnings ROAE equaled the Adjusted Distributable Earnings ROAE Target for the 2024 Performance Period. The Compensation Committee considered several factors in establishing the Adjusted GAAP ROAE target of 9.25% and the Adjusted Distributable Earnings ROAE Target of 9.25% for the 2024 Performance Period. In particular, prior to establishing the performance levels for threshold, target and maximum payouts for each component of the Formulaic Bonus, the Compensation Committee reviewed and was informed by the Company’s internal forecasts for 2024, which were presented to it and the full Board. Based on the Compensation Committee’s review of this information and macroeconomic factors, as well as its consideration of the investing and interest rate