Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 36

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 36
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 the form of LTI awards and/or with value at risk – i.e., elements of compensation with value realization tied to stock performance and/or financial, strategic, operational or risk management target and goals – comprise approximately 85% of the CEO’s target compensation at the outset of 2025 – with annual bonus realization driven by 2025 returns and operational/strategic achievements, and the realization of value from equity-based awards driven by book value TSR, absolute TSR and relative TSR over the forward-looking three- and four-year periods. |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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 *Percentages may not foot due to rounding. The CEO’s target annual compensation at the outset of 2025 is comprised of the following elements: base salary of $975,000; target 2025 annual bonus of $2.1 million; estimated $125,000 value of benefits; PSUs awarded on December 19, 2024 with a grant date value of $2.4 million; DSUs/csRSUs awarded on December 19, 2024 with a grant date value of $2.0 million. DSUs/csRSUs awarded on December 19, 2024 have a four-year pro-rata vesting schedule, with one-quarter of units vesting annually, with csRSUs awarded on December 19, 2024 cash-settled at each annual vesting date. |

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Endnotes to Executive Summary of CD&A : The following endnotes accompany the foregoing Executive Summary, organized by section heading and title of sub-section or graphic element that corresponds to endnote:

COMPENSATION PHILOSOPHY; BEST PRACTICES AND RISK MITIGANTS :

| (1) |     | In 2024, several types of long-term equity-based incentive awards were granted to executive officers: Performance Stock Units (“PSUs”) with a three-year vesting/performance period; Deferred Stock Units (“DSUs”) with a four-year vesting/holding period; and cash-settled Restricted Stock Units (“csRSUs”) with a four-year vesting period. In this Executive Summary of CD&A, we may refer to PSUs and cash-settled PSUs collectively as “PSUs” and we may refer to DSUs and csRSUs collectively as “DSUs/csRSUs”.                                                                                                                                                                                                                                                                                    |
| (2) |     | Peer comparison of