Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 19

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 19
---
 by Semler Brossy included a comparison against non-employee director compensation at the companies that comprise Redwood's executive compensation peer group. The changes to the program, effective beginning with the May 2025 to May 2026 annual period, are intended to keep Redwood’s total average annual compensation for non-employee directors at or near the compensation peer group median. Further detail regarding the executive compensation peer group is provided on pages 56 - 57 of this Proxy Statement under the heading “Executive Compensation in 2024 — Compensation Peer Group for 2024.” In particular, the Board approved the following changes, in each case effective beginning with the May 2025 to May 2026 annual period: an increase to the annual cash retainer for Board service from $90,000 to $100,000 (an increase of $10,000); an increase in the value of the annual equity award grant for Board service from $125,000 to $130,000 (an increase of $5,000); and an increase to the annual cash retainer for service as Board Chair from $120,000 to $135,000 (an increase of $15,000).

Each director may elect to defer receipt of cash compensation or dividend equivalent rights through Redwood’s Executive Deferred Compensation Plan. Cash balances in the Executive Deferred Compensation Plan are unsecured liabilities of Redwood and are utilized by Redwood as available capital to fund investments and operations. Based on each director’s election, deferred compensation can either be deferred into a cash account and earn a rate of return that is equivalent to 120% of the applicable long-term federal rate published by the IRS compounded monthly or be deferred into deferred stock units which will, among other things, entitle them to receive dividend equivalent rights related to those units.

Each year the Compensation Committee and Governance and Nominating Committee review Redwood’s compensation of non-employee directors with the assistance of the Compensation Committee’s independent compensation consultant. Any changes to non-employee director compensation recommended by these Committees are subject to review and approval by the Board. These Committees intend to complete their annual review of Redwood’s non-employee director compensation prior to year-end in 2025, when updated comparative compensation data will be available. Any changes to non-employee director compensation that are approved by the Board following this 2025 review may increase or decrease non-employee director compensation for the May 2025 to May 2026 annual period and/or May 2026 to May 2027 annual period from the amounts