Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 46

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 46
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 his individual performance during the 2024 Performance Period (i.e., the 12-month period beginning on December 1, 2023, and ending on November 30, 2024). Under the terms of his employment agreement Mr. Knutson’s “target” annual bonus (the “Overall Target Bonus”) for the 2024 Performance Period was $2,000,000 (which was unchanged from his Overall Target Bonus for each of the 2023 and 2022 performance periods), and Mr. Wulfsohn’s Overall Target Bonus for the 2024 Performance Period was $1,100,000 (which was unchanged from his Overall Target Bonus for the 2023 performance period and reflected an increase of $150,000 from his Overall Target Bonus for the 2022 performance period).

| MFA Financial, Inc. | 39 | 2025 Proxy Statement |

TABLE OF CONTENTS

Each of Mr. Knutson and Mr. Wulfsohn’s respective employment agreement provides that his annual bonus is comprised of two components:

| • | the major portion (75% of the “target” value) of the bonus is payable based on the achievement of objective performance goals established by the Compensation Committee on an annual basis, which may include performance goals based on ROAE as well as other objective performance measures that the Compensation Committee shall determine are appropriate for a given performance period. For the 2024 Performance Period, the Compensation Committee established performance goals based on two measures of ROAE, as adjusted: Adjusted GAAP ROAE and Adjusted Distributable Earnings ROAE (each as described below). With respect to Adjusted Distributable Earnings ROAE, the Compensation Committee determined each executive’s bonus measured both on an absolute basis, as well as on a relative basis compared to a peer group of mortgage REITS as selected by the committee. The bonuses based on such measures are hereinafter referred to individually as the “Adjusted GAAP ROAE Bonus”, the “Distributable Earnings ROAE Bonus” and the “Relative DE ROAE Bonus” and together as the “Formulaic Bonus”. |

| • | a lesser portion (25% of the “target” value) of the bonus is payable based on the executive’s individual performance, Company performance and the Company’s risk management (referred to as the “IRM Bonus”). |

Formulaic Bonus With respect to the Formulaic Bonus, for the 2024 Performance Period the target amount of the Formulaic Bonus (the “Target Formula