Internal Management Structure

In July 2016, AGNC internalized its management structure, furthering our commitment to our stockholders. Our internal management structure provides several key benefits to our stockholders relative to externally managed REITs:

• Lowest operating cost structure in the residential mortgage REIT industry
• No fixed management fee based on assets under management regardless of performance
• The Compensation Committee of our Board of Directors (rather than an external manager) sets our compensation policies and has designed a program that promotes AGNC’s long-term success
• More than 87% of executive compensation is incentive based
• Compensation of all employees includes long-term equity awards, and a significant portion of equity awards for senior employees is tied to AGNC financial performance over a multi-year period