Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 49

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 49
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4 Annual Financial Performance

• GAAP return on common equity (“ROE”) was 4.1%.

• Non-GAAP EAD ROE was 6.4%.

◦ Non-GAAP EAD ROE is a non-GAAP performance measure that is defined and described, and is reconciled to ROE based on GAAP financial results, in Annex A to this Proxy Statement.

• Book value TSR was 5.7%.

◦ Book value TSR (also referred to as book value total shareholder return, or “bvTSR”) for a designated period represents the period change in GAAP book value per common share plus dividends declared per common share in the period.

• Redwood paid $0.67 per share in common stock dividends in 2024.

◦ Redwood’s common stock dividend increased to $0.18 per share in the fourth quarter of 2024, a 12.5% increase from the fourth quarter of 2023.

▪ 2024 Strategic and Operational Achievements

• Leading into 2024, the Company began implementing a number of strategies meant to support performance in 2024 and beyond, including: enhancing capital and operational efficiency; expanding its product sets; diversifying distribution channels; and expanding relationships with bank counterparties. Accordingly, a key goal for executive management in 2024 was to execute on the objectives, preparation and foundation to support these strategic initiatives.

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Actions taken in 2024 to further strategic, operational and risk-management objectives had both near- and long-term benefits and management continues to focus on forward-looking initiatives and actions that are designed to positively impact future returns.

• A detailed review of strategic and operational achievements in 2024 is set forth within the preceding “Executive Summary of CD&A” under the heading “2024 Strategic and Operational Achievements” on pages 37-39 of this Proxy Statement and additional information regarding achievement of the company-wide goals is set forth below under the heading “Performance-Based Annual Bonuses Earned for 2024–Individual Performance Component of 2024 Annual Bonuses” on pages 63-65 of this Proxy Statement.

#### Elements of Compensation in 2024
In 2024, cash compensation for Redwood’s executive officers included a base salary and a performance-based annual bonus. Annual bonuses for 2024 were determined based on company financial performance and on each executive officer’s individual performance. For each executive officer, the Committee established a target annual bonus amount at the beginning