Company: BWNB
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001104659-25-034242
Chunk: 70

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 70
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 vesting in the executive’s Restoration Plan account; • accelerated vesting in any outstanding equity awards; • a cash severance payment; • a prorated target bonus payment; • payment of the prior year’s bonus payment, if unpaid at termination; and • a cash payment representing health benefits coverage costs. In addition to these payments, the NEO would be entitled to various accrued benefits earned through the date of termination, such as earned but unpaid salary and earned but unused reimbursements. Severance. The severance payment made to Mr. Morgan in connection with a qualifying termination following a change in control is a cash payment equal to two times the sum of (1) the executive’s annual base salary prior to termination and (2) the same annual base salary multiplied by the executive’s target annual incentive compensation percentage for the year in which the termination occurs. The severance amount for Mr. Morgan in connection with a qualifying termination following a change in control also includes his target annual incentive amount for the year for which the termination occurs. Assuming a termination as of December 31, 2024, the severance payment on a qualifying termination following a change in control would have been calculated based on the following for Mr. Morgan: $550,000 base salary and $550,000 target annual incentive compensation (100% of his annual base salary). Incentive Component of Severance. The severance amount for Mr. Morgan in connection with a qualifying termination following a change in control also includes his target annual incentive amount for 2023. We have assumed for purposes of this disclosure that, in the event of a December 31, 2024 termination date, he would have been entitled to a payment equal to 100% of his 2023 target incentive, as in effect immediately prior to the date of termination. Benefits. The amount reported for Mr. Morgan represents three times the full annual cost that would be payable by the NEO for continuation of coverage for medical, dental and vision benefits if elected by the NEO for himself and his eligible dependents under COBRA for the year ended December 31, 2024, which would be paid in a lump sum. Tax Reimbursements. The change in control agreements do not provide for any tax reimbursement on the benefits. Instead, the agreements contain a “modified cutback” provision, which acts to reduce the benefits payable to a NEO to the extent necessary so that no excise tax would be imposed on the benefits paid, but only if doing so would result in the NEO retaining a larger