Company: CIMO
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001206774-25-000244
Chunk: 53

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 53
---
 2022, which peer group remained unchanged in
2023 and 2024, for purposes of analyzing the competitiveness of our total direct compensation opportunities. Our prior peer group included
15 companies primarily focused in the broader mortgage financing industry, with preference given to internally-managed mortgage REITs
with similar investment strategies. Five prior peers were

<div align='center'>29</div>

acquired or externalized their
management team since the last time the compensation committee reviewed the group. The compensation committee approved the removal of
these five companies and the addition of seven new companies. Potential additions to the group were evaluated based on their reasonableness
in terms of size, business fit, and overlap in peer group networks (for example, companies naming us a peer in their own compensation
benchmarking peer group). The compensation committee also considered the overall peer group sample in approving the 17-company group shown
below with a desire to use a meaningful sample size against which Chimera was reasonably positioned in overall size. We use this peer
group to review our compensation levels and mix against comparable companies to ensure we are competitive and delivering compensation
in line with performance. As noted earlier, we use the iShares Mortgage Real Estate ETF Group when measuring our relative performance
for purposes of our annual cash bonuses and PSU awards. That group provides a larger base for measuring relative performance and represents
a group that we compete with for investor capital.

| AGNC Investment Corp.           | MFA Financial, Inc.               |
| AllianceBernstein Holding L.P.  | MGIC Investment Corporation       |
| Annaly Capital Management, Inc. | Mr. Cooper Group Inc.             |
| Arbor Realty Trust, Inc.        | New York Mortgage Trust, Inc.     |
| Broadmark Realty Capital Inc.   | PennyMac Financial Services, Inc. |
| Federated Hermes, Inc.          | Radian Group Inc.                 |
| iStar Inc.                      | Redwood Trust, Inc.               |
| Ladder Capital                  | Two Harbors Investment Corp.      |
|                                 | Walker & Dunlop, Inc.             |

Compensation Policies and Practices as They Relate to Risk Management

The compensation committee
monitors the risks and rewards associated with our compensation programs and considers, in establishing our compensation programs, whether
these programs encourage unnecessary or excessive risk taking. We believe our design includes appropriate features intended to limit unnecessary
or excessive risk-taking by our named executive officers, including, without limitation (i) incentive compensation capped at