Company: ADAMM
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001273685-25-000038
Chunk: 51

Company: ADAMAS TRUST, INC.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 51
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 Board of Directors is responsible for establishing and administering policy, on an annual basis, with respect to the compensation of our NEOs. We are committed to providing an executive compensation program that supports the following goals and philosophies:

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Structure of Our 2024 NEO Compensation Program

As discussed in more detail herein, our 2024 NEO compensation program is comprised of the following primary compensation elements:

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Management’s Assessment of our Performance in 2024

Beginning in the second quarter of 2023, after significantly curtailing our investment activity and pipeline in 2022 in anticipation of a recession to conserve capital, preserve liquidity and limit what we believed was material credit risk from investments underwritten to peak real estate valuations in 2022, we began stabilizing our investment portfolio holdings through greater investment activity. Since that time, we have focused, in large part, on acquiring assets with less price sensitivity to credit deterioration that could expand our interest income levels, like Agency RMBS. We also targeted low duration, high-coupon business purpose loans while remaining selective on credit profile and worked to optimize financing of the loans we acquire. During this time, we continued to drive higher business purpose loan acquisition volumes through ongoing partnerships with numerous originators. We experienced solid momentum in our portfolio acquisition activities in 2024 and increased adjusted interest income, a supplemental non-GAAP financial measure, by more than 60% year-over-year. On a net basis, our investment portfolio increased by approximately $2.2 billion in 2024, with repayments received from our short-duration business purpose loans, opportunistic sales of residential loans and investment securities, redemptions of our mezzanine lending investments, return of capital from our joint venture equity investments and impairments offsetting some of our investment activity.

The following summarizes certain of our key financial results and operational initiatives in 2024.

Highlights of Our NEO Compensation for 2024

The following is a summary of the highlights of our NEO compensation for 2024:

• base salary represented 25% of total compensation for our NEOs, including 2024 Long-Term EIP awards, and just 22% of our Chief Executive Officer's total compensation in 2024;

• approximately 71% of the total compensation (as disclosed in the "Summary Compensation Table" below) awarded to our NEOs in 2024 is subject to time-based or performance-based conditions; and

• approximately 50% of the total compensation for our NEOs in 2024,