Company: NLY-PF
Filing Date: 2025-05-06
Form Type: DEFA14A
Source: 0001104659-25-045048
Chunk: 1

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-05-06
Form: DEFA14A
Chunk 1
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 to the third largest purchaser of 
 bulk MSR in 20242                                      |

| § | January 2025 – Enhanced our senior leadership with the 
 promotion of Mike Fania to Co-Chief Investment Officer |

| § | February 2025 – Received a 2024 SHARP award from Freddie 
 Mac for excellence in mortgage servicing                 |

Stockholder Engagement on
Executive Compensation

Following the 2024 advisory resolution
on executive compensation (commonly known as a “Say-on-Pay” vote), we expanded and deepened our already robust engagement
efforts to gather our stockholders’ feedback on our executive compensation program and practices, including our annual incentive
framework, the structure and scoring methodology of our corporate scorecard, the selection of performance metrics and the goal-setting
process, and the overall pay mix and pay levels. We contacted 100% of our top 100 institutional investors, representing over 90% of institutional
shares outstanding (or nearly 60% of total shares outstanding) and engaged with stockholders representing approximately 60% of institutional
shares outstanding (or 38% of total shares outstanding). Our Management Development and Compensation (“MDC”) Committee Chair
participated in meetings with stockholders representing approximately 42% of institutional shares outstanding (or 26% of total shares
outstanding).

Through our engagement efforts,
we received feedback on the structure, metrics, complexity and application of our corporate scorecard, along with overall pay mix and
pay levels. In response to this feedback, the MDC Committee determined to implement certain responsive changes on an immediate basis for
2024, and committed to making additional enhancements to our executive compensation program for 2025.

Executive Compensation Enhancements
for 2024

As a result of our expansive stockholder
engagement efforts, the MDC Committee adopted a number of responsive changes to our executive compensation program for 2024, including:

| § | Streamlined the scoring methodology and removed the scaling feature used to calculate the overall score 
 for the scorecard                                                                                       |

| § | Replaced an important, but competitively sensitive, Market Risk metric (Daily Liquid Box) with a new Market                            
 Risk metric (Total Assets Available for Financing as a Percentage of Equity) based on financial information we disclose on a quarterly 
 basis                                                                                                                                  |

| § | Bolstered the transparency of the Operational Risk metric by tying its achievement to specific key risk 
 indicators                                                                                              |

1Issuer ranking data from Inside Nonconforming Markets for 2023 — 2024 (