Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 34

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 34
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ly or indirectly) of an executive officer’s misconduct, the Board of Directors will require, at its discretion and approval, the reimbursement and/or cancellation of any incentive-based compensation (including stock options awarded as compensation) in excess of the amount that would have been awarded based on the restated financial results. This policy applies to cash and equity incentive-based compensation awarded to the executive officer during the three-year period preceding the date on which the Company is required to prepare an accounting restatement based on erroneous data. In the past three years, the Company has primarily granted the NEOs equity that has performance conditions and would be subject to this policy. 68 Investor Engagement During fiscal 2024, the Company conducted proactive investor outreach programs, including having its executives attend five investor conferences as well as other meetings with the investment community and meeting by teleconference or in person with more than 139 investors either one-on-one or in small groups. As a result, the Company’s executives met with institutional holders representing approximately 77% of shares held by our top ten shareholders that are actively managed funds. From time to time, Mr. Ara Hovnanian, who is also a member of the Board of Directors, and/or Mr. O’Connor participated in these investor outreach programs and reported their findings from the investor feedback to the Board of Directors. During such meetings, none of the investors with whom the Company engaged during fiscal 2024 raised concerns about the Company’s compensation practices, including the design and payouts under the Company’s annual bonus programs. In fact, in the numerous investor meetings we have held over the years, compensation has rarely if ever been raised by investors as an issue to be discussed. 69 COMPENSATION DECISIONS FOR FISCAL 2024 The Committee’s compensation decisions for fiscal 2024 reflected a conservative approach to fixed pay elements (base salary), the achievement of pre-established goals (annual bonuses) and long-term awards. Base Salaries Given the Company’s improved financial performance, effective December 23, 2023, the Committee restored Mr. Ara Hovnanian’s salary to $1,150,000, which was his base salary prior to the voluntary decrease on March 6, 2023. In light of his promotion to Chief Financial Officer, the Committee approved a base salary increase to $600,000, effective November 1, 2023, for Mr. O’Connor. For fiscal 2024, the salaries for Mr. Alexander Hovnanian and Mr. Wyatt were set at $