Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 27

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 27
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&As), the focus continued to be on maintaining a pay-for-performance program that aligns management with stockholders and incentivizes the achievement of the Company’s short- and long-term strategic, financial and operational objectives. In the Executive Summary of CD&A that follows, we review the key elements of the executive compensation program at Redwood and, using the CEO as an example, illustrate how we believe that the level of executive compensation realized in 2024 was aligned with the Company’s financial and operating results, on both an absolute and relative basis, as well as with its strategic and business positioning. A review of the compensation of all of the named executive officers, and a deeper level of detail with respect to the CEO, is provided in the full CD&A section of this annual proxy statement, together with the Executive Compensation Tables and additional disclosures that follow the CD&A. As we engaged with stockholders over the past several years, we found that there is general consensus that a company’s executive compensation program, and the manner in which it is structured, occupies a key intersection point where the following meet: ▪ the ability to attract and retain talent in a competitive environment; ▪ the establishment of rigorous goals that incentivize and reward strong performance and adjust pay realization downward for below-target performance; and ▪ the focus of management’s time, energy and resources on the strategic and operational goals that are critical to Redwood’s long-term and sustainable growth and profitability. Our program seeks to balance these important aspects within a multi-faceted structure that strongly promotes stockholders’ interests. As stockholders review this CD&A in advance of the Company’s 2025 Annual Meeting, I look forward to outreach and dialogue regarding the executive compensation program, hearing the feedback and differing perspectives that stockholders provide, and sharing them with the full Committee and Board. The level of meaningful engagement by our stockholders is valuable to us and we are grateful for the time and effort that is dedicated to understanding our compensation program and the pay-for-performance principles implemented within it. Georganne C. Proctor, Chair – Compensation Committee

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| COMPENSATION PHILOSOPHY – BEST PRACTICES AND RISK MITIGANTS |

| Performance-Based Executive Compensation                                                                                                                                                                                                                                                                                            
 Redwood’s pay-for-performance compensation program is administered by the independent Compensation Committee of the Board of Directors (the Committee) and is designed to:                                                                                                                                                          
 ▪Incentivize attainment of business goals and sustainable stockholder returns, including:                                                                                                                                                                                                                                           
 ▪