Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 100

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 100
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,251 |     | 222,128 |     |    381,397 |     |   677,776 |     |  103,152,891 |     | 0.66 |
| Three Year Average |     |  86,324 |     | 407,066 |     |    718,496 |     | 1,211,886 |     |  102,952,560 |     | 1.18 |

| 1. | Reflects the “target” number of PRSUs granted in each year. |

We calculated our burn rate for each year by dividing the sum of (x) all vested RSUs granted to our Non-Employee Directors in the applicable year, (y) all TRSUs granted in the applicable year and (z) all PRSUs granted in the applicable year (assuming target performance), divided by the weighted average number of shares of Common Stock outstanding at the end of the applicable year. There are no stock options included in the burn rate calculation because we have not granted any stock options in the past three

| MFA Financial, Inc. | 80 | 2025 Proxy Statement |

TABLE OF CONTENTS years. Dividend equivalents on time-based grants are payable only in cash. Dividend equivalents accumulated on performance-based grants are payable in shares at the end of the performance period, based on performance, and have not been included. The burn rate means that we used an annual average of 1.18% of the weighted average shares outstanding at December 31 of the applicable year for equity grants made over the past three years under the Existing Plan. The Board believes that equity compensation is an effective retention tool that provides incentive, rewards performance and aligns the interests of our stockholders with those of our employees, officers and directors. The Board believes that grants made pursuant to the Amended Plan are a vital component of our compensation program and, accordingly, that it is important that an appropriate number of shares of Common Stock be authorized for issuance under the Amended Plan. The Board believes that the increased number of shares available for issuance under the Amended Plan represents a reasonable amount of potential equity dilution. Summary of the Amended Plan Purpose. The Amended Plan is intended to provide incentives to key employees, officers and directors who are expected to provide significant services to us and any of our subsidiaries which, with the consent of the Board, participate in the Amended Plan (collectively, the “Participating Companies”), to encourage a