Company: TWO-PC
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001465740-25-000090
Chunk: 34

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 34
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 2024 PSU awards, the Committee established three-year goals and payout levels for attainment of such goals, including a threshold level below which no PSUs will vest. The goals were communicated to the executive officers at the time of the award, however, we do not share these goals publicly until the end of the performance period due to their material, non-public nature.

2022 PSU Awards . In 2022, the Compensation Committee granted PSUs to certain of our named executive officers which provided for a three-year performance period that commenced on January 1, 2022 and ended on December 31, 2024 (the “2022 PSUs”). The 2022 PSUs entitled recipients to receive shares of common stock following the end of the three-year performance period based on the achievement of specific performance goals selected by the Compensation Committee. The performance goals selected for the 2022-2024 performance period were absolute and relative TSR, equally split. The 2022 PSUs also entitled recipients to receive dividend equivalents that accrued in the form of additional PSUs during the vesting period and were subject to the same vesting conditions as the underlying PSU award.

In January 2025, the Compensation Committee reviewed and approved the payouts with respect to the 2022 PSUs as reflected in the chart below:

|                                                                                                                                                         |     |                                                   |     | Performance Continuum |     |           |     |           |     |           |     |                  |
| Metric Weight                                                                                                                                           |     | Financial Performance Metrics                     |     | Below Threshold       |     | Threshold |     | Target    |     | Maximum   |     | 2022-2024 Actual |
| 50%                                                                                                                                                     |     | Three-year Absolute TSR                           |     | <3.0%                 |     | 3.0%      |     | 27.0%     |     | 45.0%     |     | (24.2)%          |
|                                                                                                                                                         |     | Payout Continuum (% of Target)                    |     | 0%                    |     | 25%       |     | 100%      |     | 200%      |     | 0%               |
| 50%                                                                                                                                                     |     | Three-year Relative TSR compared to Peer Group(1) |     | < 25th %ile           |     | 25th %ile |     | 50th %ile |     | 80th %ile |     | 39.4%ile