Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 52

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 52
---
*                                                                                                     |
|:----------------------------------------|:----------------------------------------------------------------------------------------------------------------|
| Bottom Three (Threshold)                | 50%                                                                                                             |
| Rank 6 (Target)                         | 100%                                                                                                            |
| Top Three (Maximum)                     | 200%                                                                                                            |
|                                         | *The applicable Performance Multiplier is interpolated on a linear basis between the points shown in the table. |

Our relative EBIT Return on Investment rank compared to our Peers for each company’s four most recently completed fiscal quarters as of April 30, 2024 was the highest, resulting in a payout of 200% of the target award. The earned PSUs vest on the third anniversary of the grant date and 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 9, 2028. 96 LONG-TERM INCENTIVE PROGRAMS 2024 Long-Term Incentive Program The 2024 Long-Term Incentive Program (the “2024 LTIP”) is entirely performance-based and is intended to incentivize achievement of specified relative EBIT Return on Investment goals as of October 31, 2026 and specified levels of net debt to capital at October 31, 2026. The Committee chose these metrics to align and incentivize the NEOs to focus on attaining operating efficiencies and improving our bottom line and our balance sheet. Each of the NEOs is a participant in the 2024 LTIP. Award payouts, if any, will be determined based on actual performance for the full 36-month performance period and will be subject to holding requirements, as described below. This performance period commenced on November 1, 2023 (the beginning of fiscal 2024) and will end on October 31, 2026 (that is, the performance period covers fiscal 2024, 2025 and 2026). After the performance period, the LTIP share portion of the awards remain subject to a mandatory two-year post-vesting delayed delivery such that the awards will not be completely distributed until five years after the beginning of the performance period, or October 31, 2028. The cash-settled LTIP phantom share portion of the awards will be distributed following the end of the performance period. Like PSU and other LTIP awards, in accordance with the Committee’s intentions, the payout under the 2024 LTIP will be determined based on the Company