Redwood Trust, Inc. · NYSE:RWT
Redwood Trust — Proxy Contest (May 2017)
8 slides from Redwood Trust's proxy contest presentation, May 9, 2017
Slide 1: Performance-Based Executive Compensation at Redwood Trust, Inc.
1 Performance - Based Executive Compensation at Redwood Trust, Inc. (NYSE: RWT ) 1 May 2017
Slide 2: Performance-Based Compensation Philosophy
2 ▪ Redwood’s compensation program is administered by an independent Compensation Committee of the Board ; Incentivize attainment of both short - term and long - term business and stockholder return objectives by: • Achieving stable and attractive ROEs to support the payment of regular and sustainab
Slide 3: Consistent Philosophy and Program – Consistently Supported by Shareholders
3 ▪ The philosophy and key elements of the program have remained consistent in recent years, based on the: ; Compensation Committee’s annual comprehensive review of the structure and results of application of the program, which is conducted in consultation with the Committee’s independent compensati
Slide 4: Elements of CEO's Target Compensation – 2016
4 ▪ Base Salary and Standard Benefits ; Base salary and other standard benefits together represent only 17% of the CEO’s target compensation for 2016 ▪ Annual Bonus ; 75% earned based on ROE - based performance metric • Performance target must at least represent earnings equal to regular annual divi
Slide 5: Redwood's 2016 and Long-Term Performance
5 Redwood’s 2016 and Long - Term Performance ▪ Very Strong 2016 Financial Performance ; Earnings per share of $ 1.54 (fully diluted, as reported under GAAP) ; ROE of 11.8% ; Paid $1.12 per share in dividends ; One - year TSR of 25% ▪ Superior Five - Year Results ; Five - year TSR of 111% • Exceeds t
Slide 6: CEO's Annual Bonus Tracks the Annual ROE Performance Measure
6 ▪ Bonuses earned under the performance - based annual bonus plan are highly correlated with Redwood’s ROE and non - GAAP Adjusted ROE ; Very strong 2016 Adjusted ROE* resulted in CEO earning an above - target bonus for 2016 CEO’s Annual Bonus Tracks the Annual ROE Performance Measure _____________
Slide 7: Value Realized From Equity Awards Tracks with TSR Over Multi-Year Periods
7 ▪ Long - term equity grants are the largest portion of the CEO’s target compensation and the overall target value of these awards is only realized when stockholders experience attractive long - term returns ; Although Redwood’s one - year and five - year TSRs are very strong (see data/graph on a p
Slide 8: Compensation Program Incorporates Best Practices
Compensation program incorporated best practices what redwood does directly links annual bonuses to performance delivers more than 50% of CEO’s target compensation in long-term equity grants imposes three- or four-year vesting/holding periods on long-term equity grants maintains robust stock ownersh