Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 41

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 41
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 intended to reward executives for their day-to-day contributions to the Company. The Committee believes that base salaries within the competitive range are necessary to retain the Company’s executive talent pool, and it set the fiscal 2024 base salaries of the NEOs at a level it believed to be necessary to retain such executive officers’ services. Base salaries of all the NEOs are reviewed annually by the Committee and are subject to adjustment based on factors that may include individual performance, change in responsibilities, average salary increases or decreases in the industry, compensation for similar positions in the Company’s Peer Group or broad -based compensation survey data if comparable data were unavailable from the Peer Group companies, as well as other factors, such as cost of living increases and internal pay relationships with other executives. 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 $600,000 and $600,222, respectively. Based on discussions with FW Cook and Peer Group market data gathered by management, the Committee determined that, including these adjustments, the base salaries for the NEOs are within the competitive range necessary to retain the executive officers’ services. 83 ANNUAL BONUSES Regular Bonuses The Company provides each of the NEOs with an opportunity to earn annual bonuses, which are intended to reward executives for the attainment of short-term financial objectives and for which the relevant metrics and formula are assessed annually. When setting bonus formulas applicable to all NEOs other than Mr. Wyatt in December 2023, the Committee determined to continue to emphasize the importance of maintaining appropriate levels of liquidity, including the use of alternative capital raises, by retaining these metrics in the NEO’s bonus programs for fiscal 2024 and increasing the fiscal 2024 alternative capital raises goals to further enhance our liquidity in order to grow the Company. The Committee also determined to maintain the ROAE bonus components for each NEO. However, given the Company’s improved financial performance, the Committee raised the fiscal 2024 bonus cap for Mr. Ara Hovnanian to $7 million, which