Company: BHM
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001104659-25-035097
Chunk: 68

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 68
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 compensation program and, accordingly, that it is important that an appropriate number of shares of stock be authorized for issuance under the Amended 2022 Incentive Plans. If stockholders do not approve the Amended 2022 Incentive Plans, our future ability to issue equity-based awards will be limited, which we believe will adversely affect our business.

If this Proposal 2 is approved by our stockholders, the aggregate number of shares of our Class A Common Stock that will be authorized for issuance under the Amended 2022 Incentive Plans will be 4,022,109, representing an increase of 425,000 shares over the 3,597,109 shares currently authorized for issuance under the 2022 Incentive Plans. The aggregate number of shares of our Class A Common Stock that will be available for issuance under the Amended 2022 Incentive Plans with respect to awards granted on or after stockholder approval will be equal to 700,275 shares, inclusive of (i) 425,000 new shares, plus (ii) 275,275 shares that remain available for issuance under the 2022 Incentive Plans.

In determining the number of additional shares to reserve for issuance under the Amended 2022 Incentive Plans, the compensation committee and the board of directors considered many factors, including our share availability under the 2022 Incentive Plans. As of April 11, 2025, 275,275 shares remain available for issuance under the 2022 Incentive Plans.

We anticipate that the reservation of 425,000 additional shares for issuance under the Amended 2022 Incentive Plans will provide for adequate shares for approximately three to five additional years, reserving sufficient shares to cover (i) potential payment of time- and performance-vested equity awards to our executive officers, (ii) payment of the equity portion of the annual retainer payable to our independent directors, (iii) potential payment of time-vested equity awards to certain of our non-executive employees, and (iv) the payment in Company equity of such annual bonuses and/or base salaries as the compensation committee may determine to be appropriate to further align the interests of the recipients with those of our stockholders.

In determining that amount, we engaged a compensation consultant, Farient Advisors (“Farient”), to provide an analysis of certain of our equity incentive compensation practices, including the number of shares reserved for issuance under our 2022 Incentive Plans. In connection