Company: TWO-PC
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001465740-25-000090
Chunk: 65

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 65
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 is an incomplete measure and does not reflect the company’s total return. The Compensation Committee does not use net income as a performance measure in our executive compensation program.

Relationship of Relative Total Economic Return to Compensation Actually Paid

The following graph illustrates the relationship between relative total economic return (rTER) and the Compensation Actually Paid to our current CEO, prior CEO and the average of other non-CEO named executive officers. We have designated rTER as our company selected measure in the Pay Versus Performance table. We believe this financial measure represents the most important financial performance measure we used in our annual incentive compensation plan to link Compensation Actually Paid to our named executive officers for the 2024 performance year. For information regarding our use of rTER in our annual incentive compensation program, please refer to “ Annual Incentive Compensation ” on page 29 .

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Most Important Measures to Determine Compensation Actually Paid for Fiscal Year 2024

As described in our CD&A, our compensation program for our named executive officers includes annual cash incentive compensation and long-term equity incentive compensation, which are variable performance-based, or at-risk, compensation designed to directly link pay to performance.

In 2024, performance-based annual incentive and long-term incentive compensation served as a material component of the compensation package for each of our named executive officers. The five items listed below represent the metrics used in our annual incentive and long-term incentive compensation and, therefore, we believe are the most important metrics we used to determine Compensation Actually Paid for the performance year ending December 31, 2024. These metrics are further described in our CD&A in the section titled “ Annual Incentive Compensation ” beginning on page 29 and “ Long-Term Incentive Compensation ” beginning on page 32 .

| Most Important Performance Measures for 2024               |
| Relative Total Economic Return                             |
| Absolute Total Economic Return                             |
| Relative 3-Year Total Stockholder Return                   |
| Absolute 3-Year Total Stockholder Return                   |
| Strategic and Operational Performance Goals and Objectives |

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PROPOSAL 2: ADVISORY VOTE RELATING TO EXECUTIVE COMPENSATION</div>

As required by Section 14A of the Exchange Act, we are asking for your advisory vote on the compensation paid to our named executive officers as disclosed in this Proxy Statement.

We urge you to review carefully our compensation policies and decisions regarding our named executive officers as presented in the “ Compensation Discussion and Analysis, ” the accompanying compensation tables