Company: TWO-PC
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001465740-25-000090
Chunk: 26

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 26
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 to executive compensation and our objective of encouraging long-term strategic decision making that aligns the interests of our executive officers and stockholders.

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#### Executive Compensation Program
Executive Compensation Program Philosophy and Objectives

Our Compensation Committee has adopted a compensation philosophy for our company that supports the company’s business and talent strategies. We believe a critical part of our company’s success depends on creating, implementing and maintaining an appropriate and competitive compensation program that motivates and incentivizes our executive officers and key employees both in the near- and long-term, and aligns the interests of our executive officers and other key employees with those of our stockholders.

The following core principles provide a framework for our executive compensation program:

|                           |     | • Our program is designed to motivate and reward superior individual and collective performance by ensuring that incentive compensation is commensurate with the level of achieved company-specific goals, financial results and industry expectations on an absolute and relative basis. 
 • Incentive plan targets are tied to specific financial and strategic/operational business goals and based on metrics that reflect our strategy and drive long-term value creation.                                                                                                       |
| Pay for Performance       |     |                                                                                                                                                                                                                                                                                           |
|                           |     | • We are a specialized company operating in a highly competitive industry, and our continued success depends on retaining our talented executive team.                                                                                                                                    
 • Our program is designed to attract, motivate and retain highly qualified executives whose abilities and expertise are critical to our long-term success and our competitive advantage.                                                                                                  
 • We retain and reward our officers using equity incentives; our long-term success and stock price create opportunities for them to be rewarded for achieving company goals and objectives.                                                                                               |
| Strengthen our Ability to 
 Retain our Work Force     |     |                                                                                                                                                                                                                                                                                           |
|                           |     | • We are committed to creating an environment that encourages increased profitability for our company without undue risk-taking.                                                                                                                                                          
 • We strive to focus our executive officers’ decisions on goals that are consistent with our overall business strategy and that maximize the long-term success of our company.                                                                                                            |
| Align Risk and Reward     |     |                                                                                                                                                                                                                                                                                           |
|                           |     | • We believe that tying compensation and equity ownership serves to directly align the interests of our executive officers with stockholders.                                                                                                                                             
 • Our executive officers are required to meet stock ownership guidelines and are prohibited from hedging or pledging company stock.                                                                                                                                                       |
| Align Interests with      
 Stockholders              |     |                                                                                                                                                                                                                                                                                           |
|