Company: TWO-PC
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001465740-25-000090
Chunk: 18

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 18
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 compensation should:

• align the interests of our directors and our stockholders;

• help attract and retain outstanding director candidates who meet the criteria in our Corporate Governance Guidelines and Nominating and Corporate Governance Committee Charter; and

• reflect the substantial time commitment of our directors necessary to oversee our business.

We compensate our independent directors with a mix of cash compensation and equity awards. We do not pay any compensation to non-independent directors for their service, however, all members of our Board of Directors are reimbursed for their costs and expenses of serving on the Board of Directors, including costs and expenses of attending meetings of our Board of Directors and its committees. As discussed above, the Compensation Committee Charter provides that the Compensation Committee has the primary responsibility for reviewing and recommending any changes to director compensation. Our Board of Directors reviews the Compensation Committee’s recommendations and determines the amount of director compensation.

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#### Independent Director Compensation for 2024
For the one-year term commencing upon their election at the 2024 annual meeting of stockholders and ending at the Annual Meeting, our independent directors were eligible to earn the following fees:

• each independent director received an annual fee of $216,000, which consisted of $98,000 in cash and $118,000 in restricted stock units;

• the independent Chair of the Board of Directors received an additional fee of $150,000, which was paid half in cash and half in restricted stock units;

• the Chair of the Audit Committee received an additional fee of $20,000 in cash; and

• each of the Chairs of the Compensation, Risk Oversight and Nominating and Corporate Governance Committees received an additional fee of $15,000 in cash.

The cash portion of these annual fees is paid in four equal quarterly installments over the course of the term. The restricted stock unit portion of these annual fees was granted under our 2021 Equity Incentive Plan (“2021 Plan”). The number of restricted stock units issued on the grant date was determined using the fair market value of our common stock on the grant date, which is the closing market price on the NYSE. The restricted stock units granted to the independent directors as part of the director fees noted above fully vest on the date of the next annual meeting of the stockholders, so long as such director has complied with the terms and conditions of the applicable award agreement. In the event the director’s service terminates prior to expiration of their term for any reason other than death or disability, the director will vest in a