Company: CIMO
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001206774-25-000244
Chunk: 44

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 44
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%                | 2024            
 Economic Return 
 Result          
 15.46%          
 87th Percentile |
| 50th Percentile     |     | 100%              |                 |
| 75th Percentile     |     | 150%              |                 |
| 100th Percentile    |     | 200%              |                 |

In accordance with the Employment
Agreements in effect during 2024, the Threshold was set at the lesser of (x) the average of the weekly 2-year Treasury note rates published
in the US. Reserve H.15 Report for the 52 weeks in the Annual Cash Bonus Measurement Period plus 100 basis points or (y) the 25
percentile of Relative Economic Return. The percentage of target payable for Relative Economic Return achieved between the percentiles
set forth in the above table (if performance is above the Threshold) is determined by linear interpolation. If the achieved Relative Economic
Return is at or above the Threshold but below the 50 percentile, the percentile corresponding to the achieved Relative Economic
Return will be used when applying such linear interpolation. Notwithstanding the foregoing, in the event that the Company Economic Return
for the Annual Cash Bonus Measurement Period is at or below zero, achievement of the Economic Return component shall be deemed to not
exceed 100%. Average weekly 2-year Treasury note rates plus 100 basis points was 5.5% during the Annual Cash Bonus Measurement Period
and the 25 percentile performance of the iShares Mortgage Real Estate ETF constituents was -2.35%, meaning that the threshold
goal for the 2024 performance period was -2.35%.

We set the threshold goals for
the ROE and Economic Return components at the lesser of these two external benchmarks to discourage any excessive risk-taking in strong
markets. Greater use of debt leverage enables many mortgage REITs to enhance their ROE but presents a greater risk to equity investors.
By incorporating an absolute benchmark into the threshold goal, we provide an opportunity for our management team to still earn some level
of bonus, albeit well below target, even if other mortgage REITs are taking on higher levels of leverage and commensurately higher levels
of risk to generate higher levels of ROE and Economic Return.

We compete with the other 31 constituents
(excluding Chimera) of the iShares Mortgage Real Estate ETF for investor capital, and our investors primarily allocate their portfolio
dollars in our sector based on sustainable and growing dividends. We