Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 88

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 88
---
 of $6.64 per share subject to a four-year vesting schedule (fully vesting on December 18, 2028).

(3) Mr. Abate received a 2024 annual long-term equity-based award in December 2024 and received 55% of that award value in the form of a target number of performance stock units on December 19, 2024. The other NEOs also received a 2024 annual long-term equity-based award in December 2024 and received one-half of that award value in the form of a target number of performance stock units on December 19, 2024. The performance stock units were granted with a grant date fair value of $7.5025 per unit. Vesting of these performance stock units will generally occur, if at all, as of January 1, 2028 based on a three-step process, as described on pages 66-68 of this Proxy Statement under the heading “Compensation Discussion and Analysis – 2024 Long-Term Equity-Based Incentive Awards – Performance-Based Vesting – PSUs Granted in December 2024.”

(4) The amounts reported in the “Estimated Possible Payouts Under Non-Equity Incentive Plan Awards” column reflect the target, threshold and maximum payouts for each of the NEOs under Redwood’s performance-based bonus compensation program, which were structured to be earned based on Redwood’s 2024 Adjusted ROE, Redwood’s 2024 Adjusted EAD ROE and individual contributions to the Company’s pre-established annual strategic, operational and risk management goals for 2024. See “Compensation Discussion and Analysis — 2024 Performance-Based Annual Bonus Compensation” beginning on pages 58-62 for a more complete description of the Company’s performance-based annual bonus program. Actual bonus amounts awarded to NEOs for 2024 are reflected above in the “Summary Compensation” table.

(5) Represents the target number of shares to be awarded upon the contingent vesting of performance stock units as discussed above in Note 3. Information regarding the assumptions used to value our NEOs’ stock units is provided in Note 21 to our consolidated financial statements included in Redwood’s Annual Report on Form 10-K filed on March 3, 2025.

(6) For December 2024 awards of performance stock units, represents the maximum number of shares that could contingently vest, as discussed above in Note 3, subject to any adjustment of the target number of