Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 11

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 11
Chunk 11
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 Performance for 2024 Performance Year.  The Company’s financial performance reflects the strong global passenger demand for air travel and robust demand for our narrow-body aircraft due to ongoing OEM delivery delays and supply chain constraints. The increased demand for our aircraft through lease extension requests and strong gains on sales contributed positively to our financial results, which are also partly driven by cash settlement proceeds received in respect of our contingent and possessed insurance policies for aircraft formerly on lease to Russian airlines.  As a result, the Book Equity IRR for the 2024 performance year was 5.3%.  Therefore, the portion of our 2024, 2023 and 2022 LTI awards related to the 2024 performance year were earned at 132%, 150% and 150%, respectively.  For our executive officers other than Mr. O’Callaghan, the 2022 LTI Awards cliff-vested on February 28, 2025.  For all of our executive officers, the 2023 and 2024 LTI awards will cliff-vest on February 28, 2026 and 2027, respectively.

For our executive officers other than Mr. O’Callaghan, the 2022 LTI Awards that cliff-vested on February 28, 2025, were earned with respect to each performance year during the three-year performance period as follows:

2022 LTI AwardsPerformance YearBook Equity IRR% of Target Annual Award EarnedFiscal Year 20222.9%128%Fiscal Year 20233.9%148%Fiscal Year 20245.3%150%

For Mr. O’Callaghan, the portion of his 2022 LTI Award payable for the 2024 performance year was earned at 150% and vested on February 28, 2025.

Other Compensation.  Our NEOs are eligible to receive severance payments and accelerated vesting of LTI awards in certain circumstances, as described in greater detail below in the section entitled “Potential Payments upon Termination or Change in Control”.  Severance and change in control benefits provide transitional assistance for separated employees and are essential to recruiting and retaining talented executives in a competitive market.  In addition, our NEOs are also eligible to participate in our employee benefit plans, including medical, dental, life insurance and retirement plans.  These plans are available to all employees and do not discriminate in favor of our NEOs.

Recoupment Policy.  In January 2016, we