Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 10

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 11
Chunk 10
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 return with respect to our common shareholders’ book equity (“Book Equity IRR”) as the measure of long-term performance.  Each fiscal year within the three-year performance period constitutes a performance year.  Our LTI awards are granted with a target award amount, whereby one-third of the target award relates to each performance year.  The annual award earned in respect of a given performance year is adjusted based on the Book Equity IRR achieved for the given performance year.  The Book Equity IRR for each performance year is evaluated against a performance range in order to determine the target annual award earned.  The LTI awards yield a minimum payout of 50% and a maximum payout of 150% of the target annual award.

For maximum retention, our executive officers’ LTI awards cliff-vest at the end of the three-year performance period subject to continued employment through such date.  Prior to his appointment as our Chief Operations Officer effective March 1, 2023, Mr. O’Callaghan was granted non-executive officer LTI awards in 2022 and 2021 that vest annually on the last day of each performance year, subject to his continued employment through such date. 

Our LTI awards granted in 2024, 2023 and 2022 have the following performance ranges with results between the minimum and target and the maximum and target being interpolated on a linear basis.

49

Annual Performance Range for LTI Awards

Book Equity IRR2024 LTI Awards2023 LTI Awards2022 LTI Awards% of Target Annual Award EarnedEqual to or greater than 6.2%Equal to or greater than 5%Equal to or greater than 4%150%Greater than 3.7% and less than 6.2%Greater than 2.5% and less than 5%Greater than 1.5% and less than 4%InterpolatedEqual to 2.2% through 3.7%Equal to 1.0% through 2.5%Equal to 0.5% through 1.5%100%Greater than -0.3% and less than 2.2%Greater than -1.5% and less than 1.0%Greater than -2.0% and less than 0.5%InterpolatedLess than or equal to -0.3%Less than or equal to -1.5%Less than or equal to -2.0%50%

Actual