Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 29

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 29
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 voting at Redwood.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Stockholder Feedback in 2024                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 As described above, in 2024 the Committee Chair and Redwood’s outreach team continued its practice of engaging with stockholders regarding executive compensation. Engagement was focused primarily on continuing proactively to gather feedback and perspectives on the changes to the design and structure of the executive compensation program that had been implemented by the Committee following the 2022 annual meeting of stockholders.                                                                                                                                                                                                                                     
 Based on the extensive stockholder outreach conducted over the prior two years, many of the stockholders that were contacted responded that engagement in prior years had supported their understanding and support for the compensation program, without the need for direct engagement in 2024. Stockholders who did directly engage in 2024 were focused on understanding how stockholder concerns raised in 2022 had been fully addressed by the changes to the program over the course of 2022 and 2023 and were focused on how financial performance targets were established and the levels of compensation realized for performance at, above and below those target levels. |

Endnotes are set forth on page 44, following the conclusion of this Executive Summary.

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| CEO’S TARGET COMPENSATION STRUCTURE – OUTSET OF 2024 |

Elements of CEO’s Target Compensation Structure – Outset of 2024 Entering 2024, the Committee structured target compensation for Redwood’s CEO as illustrated in the chart below. As described further herein, the Committee’s determinations were made after taking into account Redwood’s business model and outlook, strategic and operational objectives, stockholder feedback and an overall review of the structure of Redwood’s executive compensation program compared to peers and competitive practice.

| Key Highlights – CEO’s Target Compensation at Outset of 2024                                                                                                                                                                                                                                                                                                    |     |                                                                                                                                                                                                                                                                                                                                                             |
| Long-Term Incentives:Long-term equity-based incentive (LTI) awards continued to be the predominant element of target compensation for the CEO at the outset of 2024.                                                                                                                                                                                            
 ▪55% of LTI awards granted at year-end 2023 (as part of target compensation for 2024) were in the form of PSUs with a 3-year performance measurement/vesting period beginning on January 1, 2024.                                                                                                                                                               
 Performance-Based/Value at Risk:Elements of compensation in the form of LTI awards and/or with value at risk comprised approximately 85% of the CEO