Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 12

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 11
Chunk 12
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 adopted a clawback policy covering certain incentive compensation awarded to our executive officers.  The policy requires reimbursement of incentive payments awarded to an executive officer based upon financial results that were subsequently the subject of a restatement due to the Company’s material noncompliance with financial reporting requirements.  The amount of reimbursement would be to the extent that a lower payment would have been awarded to the executive based on the restated financial results.  The policy applies to all incentive compensation awarded or paid to an executive officer in the three years prior to the restatement, even if the executive officer did not engage in conduct which contributed to the restatement. In addition, we may seek to recover any portion of incentive compensation when we determine that an executive officer engaged in a certain misconduct.

Retirement.  For our executive officers, we have designed a qualifying retirement feature that will allow the LTI awards to continue to vest following retirement, subject to satisfaction of the Book Equity IRR performance objectives.  For purposes of the LTI awards, a qualifying retirement means: (a) a retirement date no earlier than March 27, 2024; (b) the executive provides at least 12 months' notice; (c) the executive is at least 55 years old on the date of retirement and (d) such individual is not an executive officer (or serving in any other senior commercial role) with certain competitors prior to the vesting date.

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Summary.  The primary goals of our compensation programs are to attract, motivate and retain the most talented and dedicated employees and to align incentive compensation with Company performance.

2024 Compensation

Performance versus Corporate Financial Metrics.  For 2024, the Company’s performance against its corporate financial metrics resulted in an incentive compensation pool equal to 130% of the total target, as shown in the table below.  Certain financial metrics, such as profit before tax, were impacted by the effects of the increased demand for our aircraft, strong gains on sales and settlement proceeds received in respect of our contingent and possessed insurance policies for aircraft formerly on lease to Russian airlines.

Metric2024 Target(in millions)Weighting2024 Performance (in millions)Performance RangePerformanceWeighted ScoreProfit before tax$100.0 50%$145.6 50% - 150%138%69 %Cash flow$383.0 25%$464.0 50% - 150%150%37 %New investments$1,720.0 25%$1,637.1 50%