Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 69

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 69
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’s position, responsibilities, total compensation level, individual and company financial performance, competitive factors, and compensation peer group comparisons.

The Committee’s annual practice is generally to determine the size of long-term equity-based awards to NEOs at the regularly scheduled (pre-established) fourth quarter meeting of the Committee (which for 2024 occurred on in December 2024), with the grant date for such awards in 2024 being December 19, 2024.

The long-term equity-based awards the Committee granted to NEOs in 2024 were in three forms: Deferred Stock Units (“DSUs”), cash-settled RSUs (“csRSUs”), and Performance Stock Units (“PSUs”), the key terms of which are summarized below.

Performance-Based Vesting – PSUs Granted in December 2024 . Performance-based vesting of the PSUs granted to NEOs in December 2024 will generally occur as of January 1, 2028, after a three-year performance measurement period encompassing January 1, 2025 to December 31, 2027, based on a three-step process as described below.

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| First, the target number of PSUs granted (“Target PSUs”) is divided into two tranches of Target PSUs, as follows: |     |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                   |     | -1 | one tranche (the “bvTSR Tranche”) represents 66.7% of the Target PSUs, with vesting for this portion of the Target PSUs to range from 0% to 250% of this portion of the Target PSUs based on the level of Redwood’s book value TSR (or “bvTSR”) over the three-year performance measurement period, with 100% of this portion of the Target PSUs vesting if cumulative bvTSR for the three-year performance period is 25%; and                                                                   |
|                                                                                                                   |     | -2 | a second tranche (the “rTSR Tranche”) represents 33.3% of the Target PSUs, with vesting for this portion of the Target PSUs to range from 0% to 250% of this portion of the Target PSUs based on the level of Redwood’s relative TSR (or “rTSR”) over the three-year performance measurement period, with 100% of this portion of the Target PSUs vesting if rTSR for the three-year performance period is at the