Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 53

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 53
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 environment at the time of its review, the Compensation Committee believed that the prior year’s Adjusted GAAP ROAE “target” of 8.25% was no longer appropriate and that a higher Adjusted GAAP ROAE target was merited in order to appropriately incent management, while not encouraging it to undertake undue risks to achieve target performance. At the same time, the Compensation Committee recognized that in light of the methodology used to calculate Adjusted Distributable Earnings, an Adjusted Distributable Earnings ROAE target of 9.25% (as compared to an analogous target of 8.25% for the 2023 performance period) was a level that would appropriately incent management for the 2024 Performance Period. Relative DE ROAE Bonus . With respect to the Relative DE ROAE Bonus, the Compensation Committee determined that the Company’s Adjusted Distributable Earnings ROAE for the Relative DE ROAE Performance Period would be measured and ranked against the Adjusted Distributable Earnings ROAE of the companies in the Relative DE ROAE Peer Group (excluding, as indicated above, MFA) for the same period. The Compensation Committee adopted the following parameters for the purpose of determining the amount of the Relative DE ROAE Bonus that could be earned by each of Mr. Knutson and Mr. Wulfsohn for the performance period. To the extent MFA’s Adjusted Distributable Earnings rank for the Relative DE ROAE Performance Period were to be:

| • | Below the 25th percentile of the Relative DE ROAE Peer Group, no Relative DE ROAE Bonus would be earned. |

| • | At the 25th percentile (the “threshold” percentile level) of the Relative DE ROAE Peer Group, the amount of the Relative DE ROAE Bonus that would be earned by the executive would be equal 37.5% of the executive’s Relative DE ROAE Target. |

| • | At the 50th percentile (the “target” percentile level) of the Relative DE ROAE Peer Group, the amount of the Relative DE ROAE Bonus that would be earned by the executive would be equal 100% of the executive’s Relative DE ROAE Target ($600,000 in the case of Mr. Knutson and $330,000 in the case of Mr. Wulfsohn). |

| • | To the extent MFA’s Adjusted Distributable Earnings ROAE rank was at or above the 80th percentile (the “maximum” percentile level) of