Company: CIMO
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001206774-25-000244
Chunk: 38

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 38
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2025, Mr. Macdowell, consistent with the other named executive officers, will receive compensation in the form of salary plus an incentive
award opportunity determined each year ranging from 0% to 200% of the target depending on the performance goal and actual performance
result.

2024 Performance Highlights

We continued to execute on our
business strategy of building a durable investment portfolio that provides attractive risk-adjusted returns through the generation of
distributable income by selectively investing in residential mortgage assets with a focus on credit analysis and risk management. In 2024,
we also positioned ourselves for resilience and growth through the following, among other, actions:

| ● | Purchased approximately $1 billion current face in floating rate Agency CMO and approximately $102 million current face in subordinated tranches of third-party mortgage securitizations.                                                                                                                                                                                                                                                      |
| ● | Sponsored a $468 million securitization of seasoned reperforming residential mortgages.                                                                                                                                                                                                                                                                                                                                                        |
| ● | Completed the acquisition of Palisades.                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● | Continued to refinance our debt and maintained a low GAAP debt-to-equity ratio and recourse leverage of 4.0:1 and 1.2:1, respectively.                                                                                                                                                                                                                                                                                                         |
| ● | Raised approximately $140 million at a weighted average coupon of 9.13% from two unsecured senior note offerings in 2024.                                                                                                                                                                                                                                                                                                                      |
| ● | Engaged in hedging activity to help mitigate the impact of higher interest rates on our future financing and overall portfolio value, while maintaining optionality for our portfolio to benefit from potential lower interest rates in the future, including the conversion of $1.5 billion of interest rate swaptions to swaps at a weighted average pay-fixed rate of 3.56%, protecting approximately 69% of our floating rate liabilities. |
| ● | Company ROE for the 2024 performance period was approximately 23.6%.                                                                                                                                                                                                                                                                                                                                                                           |

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2024 Compensation Highlights

Compensation decisions by the
compensation committee for 2024 demonstrate the link between the compensation opportunities for our named executive officers and performance
for our stockholders, consistent with the design contemplated by the Employment Agreements in effect during 2024 for the named executive
officers, other than Mr. Macdowell who joined in December 2024:

| ● | for 2024 annual cash bonuses, our ROE (carrying 35%