Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 35

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 35
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 Performance and CEO’s Long-Term Pay Realization In December 2024, Redwood’s CEO had the opportunity to realize final value from long-term incentive awards that were granted in December 2020, which had a four-year vesting period, as well as from awards that were granted in December 2021, which had a three-year vesting period. Final value realized from these long-term awards is in alignment with stockholder returns over these same periods through the use of both service-based vesting and performance-based vesting for these awards.

Endnotes are set forth on page 46, following the conclusion of this Executive Summary.

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| CEO’S TARGET COMPENSATION STRUCTURE – OUTSET OF 2025 |

Elements of CEO’s Target Compensation Structure – Outset of 2025 Looking forward at the outset of 2025, the Committee structured 2025 target compensation for Redwood’s CEO, as illustrated below. Consistent with its annual process, the Committee’s determinations were made after taking into account Redwood’s business model and outlook, strategic and operational objectives, stockholder feedback and an overall review of the structure of Redwood’s executive compensation program compared to peers and competitive practice.

| Key Highlights – CEO’s Target Compensation at Outset of 2025                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Base Salary:The CEO’s base salary was increased by $25,000 for 2025, after review of peer and competitive practice.  Fixed elements of compensation (salary and standard benefits) continued to represent approximately 15% of the CEO’s target compensation at the outset of 2025.                                                                                                                                                                                                                                                                                                                                                 
 Target Annual Bonus:The CEO’s target annual bonus was increased from 200% of base salary in 2024 to 215% of base salary for 2025, after review of peer and competitive practice.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 LTI Awards:Long-term equity-based incentive (LTI) awards continued to be the predominant element of target compensation for the CEO at the outset of 2025.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 ▪55% PSUs.  55% of LTI awards granted to the CEO at year-end 2024 (as part of target compensation at the outset of 2025) were in the form of PSUs with a 3-year performance measurement/vesting period beginning on January 1, 2025.                                                                                                                                                                                                                                                                                                                                                                                                
 Performance-Based/Value at Risk:Elements of compensation in