Company: AOMN
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001766478-25-000028
Chunk: 38

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 38
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 unit award pursuant to our 2021 Equity Incentive Plan. Mr. Prabhu does not participate in the LTIP. The grants were made after considering Mr. Filson’s individual performance and to further align his interests with those of our stockholders. Mr. Filson’s grants were also informed by discussions with our independent compensation consultant, Ferguson Partners Consulting L.P . Our Compensation Committee retained Ferguson Partners Consulting L.P. , an independent compensation consultant, to advise on our equity compensation program. The time-based restricted stock award is scheduled to vest in four equal annual installments on each of the first four anniversaries of the grant date, subject to Mr. Filson’s continued employment through each vesting date. The performance-based restricted stock unit award is scheduled to vest 50% on June 30, 2027 and 50% on June 30, 2028, subject to Mr. Filson’s continued employment through each vesting date and with the number of shares vested to be based on the achievement of performance goals based 75% on Relative Total Shareholder Return (“ TSR ”) and 25% on Relative Book Value TSR over the July 1, 2024 through June 30, 2027 performance period.

Our Compensation Committee established the following threshold, target and maximum performance goals for Mr. Filson’s 2024 performance-based restricted stock unit award. Reflecting a market best practice, the target vesting level corresponded with performance at the 55th percentile, and consequently, the Company must outperform its peers in order to receive a target payout.

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For purposes of Mr. Filson’s 2024 performance-based restricted stock unit award:

• “ Relative TSR ” means the Company's total stockholder return, on a percentile basis, relative to the companies comprising the Nareit Resi Mortgage Index (the “ Index ”) with respect to the performance period, based on the volume-weighted trailing average closing prices of such constituent companies as of the first day and last day of the performance period (adjusted for dividends); provided that members of the Index will only be taken into account for purposes of the calculation of Relative TSR if they constitute part of the Index on both the first day and the last day of the performance period. In the event of the bankruptcy or liquidation of a constituent of the Index, such constituent will be ranked at the bottom of the Index for purposes of determining Relative TSR.

• “ Relative Book Value TSR ” means the change in