Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 48

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 48
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 receiving Class B Common Stock was equal to the value if they had received Class A Common Stock and that making their equity awards in the form of rights to receive shares of Class B Common Stock best served the Company’s and its shareholders’ interests by promoting continuity of direction and management and stability in the Company’s business and employee relationships through Hovnanian generational family ownership and control, which has been and continues to be critical to the growth and success of the Company. There was a less than 4.0% and 0.2% change in the percentage of Hovnanian shareholder votes controlled by Mr. Ara Hovnanian and Mr. Alexander Hovnanian, respectively, caused by the later of vesting or delivery, in fiscal 2024, of Class B Hovnanian Common Stock awards. 92 The Committee decided to award PSUs to the NEOs in fiscal 2024 because it believes PSUs provide a clear linkage to shareholder value creation and balance retention and performance objectives. Of the PSUs awarded to the NEOs in fiscal 2024, half of the PSUs were tied to absolute EBIT levels, and the other half of the PSUs were tied to absolute EBIT Return on Investment levels as further discussed below. The absolute EBIT metric was chosen because the Committee determined that it supports the Company’s strategic goal of improving profitability and interest coverage. The absolute EBIT Return on Investment metric was chosen because the Committee determined that it measures pure operating performance. If the performance conditions are met, the earned PSUs vest on the third anniversary of the grant date. The earned PSUs are further subject to a mandatory two-year post-vesting delayed delivery such that the PSU awards will not be completely distributed until five years following the grant date, or June 14, 2029. Mr. Ara Hovnanian: In fiscal 2024, Mr. Ara Hovnanian received 19,086 target PSUs with a grant date fair value of $2,274,096 compared to 31,202 target PSUs in fiscal 2023 with a grant date fair value of $2,274,002. Mr. O’Connor: In fiscal 2024, Mr. O’Connor received 4,616 target PSUs with a grant date fair value of $549,996 compared to 2,882 target PSUs in fiscal 2023 with a grant date fair value of $210,040. Mr. Wyatt: In fiscal 2024, Mr