Company: CIMO
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001206774-25-000244
Chunk: 41

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 41
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 NEO interests with other non- executive employees                                                      |

*Information in the table above
for the 2024 calendar year includes the employment agreement for Mr. Macdowell, who joined the Company on December 2, 2024.

2024 Incentive Compensation Decisions

General. The compensation
design reflected in the Employment Agreements weighs compensation opportunities heavily towards variable, performance-based awards in
a mix of cash and stock balanced by annual and multi-year performance goals. The compensation committee believes that the incentive compensation
design reflected in the Employment Agreements in effect during 2024 was appropriately tied to our business strategy and encouraged our
management team to pursue strategies intended to deliver efficient earnings against our capital base and strong stockholder returns.

Unless otherwise noted, the discussion
in this section does not apply to Messrs. Macdowell’s or Yarlagadda’s incentive compensation for 2024.

The 2024 compensation design
for named executive officers included an incentive award opportunity broken into three key components:

| ● | an annual cash bonus payable in cash ranging from 0% to                                                                                                                                                                                                                                                                                            
 200% of the target, which payout is based 35% on Relative ROE performance with cap based on the Company’s ROE performance for the                                                                                                                                                                                                                  
 Annual Cash Bonus Measurement Period, 35% on Relative Economic Return performance with cap based on the Company’s Economic Return                                                                                                                                                                                                                  
 performance for the Annual Cash Bonus Measurement Period, and 30% based on achievement of the strategic goals by each named executive                                                                                                                                                                                                              
 officer during the 2024 calendar year;                                                                                                                                                                                                                                                                                                             |
| ● | 50% of the long-term incentive bonus granted in early 2024 as an award of fixed                                                                                                                                                                                                                                                                    
 amount of RSUs vesting ratably over three years, and                                                                                                                                                                                                                                                                                               |
| ● | 50% of the long-term incentive bonus granted in early 2024 as a PSU award that becomes earned based 50% on Relative Economic Return, with cap based on the Company Economic Return for the LTI Measurement Period, and 50% on Relative TSR, with cap based on the Company’s TSR for the LTI Measurement Period, ranging from 0% to 200% of target. |

<div align='center'>23</div>

Relative ROE, Relative TSR and
Relative Economic Return are key financial measures for us because, as a mortgage REIT, we are focused on generating earnings efficiently
against our capital base and returning those earnings to our stockholders, primarily in the