Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 58

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 58
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 members of senior leadership of the Company to provide up to 6% of earnings, excluding equity and other long-term compensation, above the annual 401(k) limit for the calendar year, based on tenure. Specific benefits and the incremental costs of such benefits are described in detail in the footnotes to the Summary Compensation Table. The Company does not offer any defined benefit pension plans to its employees. 103 5. ACTIONS for FISCAL 2025 The Committee approved a 4% base salary increase, effective December 21, 2024, for each of Messrs. O’Connor, Wyatt and Alexander Hovnanian, in line with the Company’s ordinary course merit-based salary and cost of living increase practices. Upon his recommendation, the Committee determined not to increase Mr. Ara Hovnanian’s base salary for fiscal 2025. The Committee increased the alternative capital raises goals in the NEOs’ fiscal 2025 bonus plans to further enhance our liquidity in order to grow the Company. In addition, the Committee increased the fiscal 2025 bonus potential for Messrs. O’Connor and Alexander Hovnanian. The Committee also adopted a new Long-Term Incentive Program (the “2025 LTIP”). Each of the NEOs will be a participant in the 2025 LTIP, and their award payouts will be determined based on the Company’s achievement of specified levels of (1) EBIT Return on Investment relative to the Peer Group for the four most recently completed fiscal quarters as of October 31, 2027 and (2) net debt to capital at October 31, 2027. At the end of the performance period, the awards, if any, which would be payable in shares of Company stock, are further subject to a mandatory two-year post-vesting delayed delivery such that the awards will not be completely distributed until November 1, 2029. The performance period for the 2025 LTIP commenced on November 1, 2024 and will end on October 31, 2027. In addition, the Committee increased the target multiple of base salary for Messrs. O’Connor and Alexander Hovnanian to one times their respective base salaries in effect on January 1, 2025. 104 6. TAX DEDUCTIBILITY &ACCOUNTING IMPLICATIONS As a general matter, the Committee takes into account the various tax and accounting implications of compensation. When determining amounts of equity grants to executives and employees, the Committee