Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 37

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 37
---
 new and highly-qualified individuals to join the organization as it grows or in the event of succession or replacement of an executive; To appropriately design the reward system in the context of a challenging business environment; and Not to incentivize a level of risk through its compensation plans that is reasonably likely to have a material adverse effect on the Company. 74 TAILORED COMPENSATION Consistent with these objectives, the Company’s compensation philosophy also takes into consideration the unique roles played by each of the NEOs. The Committee seeks to individually tailor their compensation packages to align their pay mix and pay levels with their contributions to, and positions within, the Company. Because the NEOs make executive decisions that influence the direction, stability and profitability of the Company, their overall compensation is intended to strongly align with the Company’s strategic goals and objective financial measures of the Company. VARIABLE INCENTIVE COMPENSATION The Company’s compensation philosophy emphasizes variable incentive compensation elements (bonus and long-term incentives), the value of which reflects the Company’s strategic, financial and stock performance. For all NEOs, the Committee retains the flexibility to adjust incentive awards downward or to consider discretionary bonus awards in special circumstances as described below under “Details of Compensation Elements—Annual Bonus—Discretionary Bonuses.” 75 PEER GROUP CONSIDERATIONS As context for setting the compensation levels for the CEO and CFO for fiscal 2024, the Committee considered the compensation levels and practices of its Peer Group companies. For fiscal 2024, the Company’s Peer Group included the following nine publicly-traded homebuilding companies:

| Beazer Homes USA, Inc.    | M/I Homes, Inc.                  |
| Century Communities, Inc. | Meritage Homes Corporation       |
| Dream Finders Homes, Inc. | Taylor Morrison Home Corporation |
| KB Home                   | TRI Pointe Group, Inc.           |
| LGI Homes, Inc.           |                                  |

76 The Committee, in consultation with the Committee’s compensation consultant, FW Cook, and management, selected the companies in the Peer Group because of their comparable industry profiles, including, among other factors, revenue, adjusted total EBIT and enterprise value. In fiscal year 2024, the Committee reviewed the composition of the Company’s Peer Group and, due to the merger of M.D.C. Holdings, Inc. with Sekisui House, Ltd., the Committee determined to remove M.D.C. Holdings, Inc. from, and add Dream Finders Homes, Inc. to, the Company’s Peer Group. Further, to