Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 112

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 112
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 non-GAAP financial performance metric. Non-GAAP Adjusted ROE is further described on pages 58-59 within the Compensation Discussion and Analysis section of this Proxy Statement and within Annex B to this Proxy Statement.

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Analysis of Information Presented in the Pay vs. Performance Table

The graphs below describe and illustrate the relationships between (i) the “Compensation Actually Paid” (CAP) to the PEO and the other NEOs, as set forth in the Pay vs. Performance table above, and (ii) Net Income (Loss), Adjusted ROE, and TSR (including TSR of the FTSE NAREIT Mortgage REIT Index).

| Relationship of CAP to Net Income (Loss) |

| Relationship of CAP to Adjusted Return on Equity (Adjusted ROE) |

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| Relationship of CAP to Total Stockholder Return (TSR)**                                                                                                                                                                                        |
| *  As set forth in this graph, “Peer TSR” represents the annual TSR of the FTSE NAREIT Mortgage  REIT Index for each of the years presented.                                                                                                   
 **  For each year presented within this graph, Redwood TSR and Peer TSR represent annual TSR as measured from January 1st of such year to December 31st of each such year, based on an initial fixed $100 investment on each such January 1st. |

Financial Performance Measures

Disclosed below are the most important financial measures used by the Company to link (i) “Compensation Actually Paid” to the Company’s Named Executive Officers for 2024 (the Company’s most recently completed fiscal year) to (ii) the Company’s performance:

| Most Important Performance Measures:                                |
| Adjusted Return on Equity (Adjusted ROE)                            |
| Adjusted Earnings Available for Distribution ROE (Adjusted EAD ROE) |
| Book Value Total Shareholder Return (bvTSR)                         |
| Total Shareholder Return (TSR)                                      |
| Relative Total Shareholder Return (rTSR)                            |

As discussed within the Compensation Discussion and Analysis section of this Proxy Statement, Redwood’s business model and internally-managed REIT structure inform the Compensation Committee’s selection of performance metrics used in Redwood’s performance-based executive compensation program. As described in the Compensation Discussion and Analysis section of this Proxy Statement, in addition to total stockholder return and relative total stockholder return, which is Redwood’s total stockholder return measured on a relative basis against the