Hovnanian Enterprises Inc

1. 1

   Election of Directors

   ManagementBoard: FOR

   Elect eight nominees to the Board of Directors to serve until the next annual meeting.

2. 2

   Ratification of the Selection of an Independent Registered Public Accounting Firm

   ManagementBoard: FOR

   Ratify Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the year ending October 31, 2026.

3. 3

   Approval of the Fourth Amended and Restated 2020 Hovnanian Enterprises, Inc. Stock Incentive Plan

   ManagementBoard: FOR

   Approve the Fourth Amended and Restated 2020 Stock Incentive Plan to increase the aggregate share reserve (Absolute Share Limit) to 1,815,000 Shares and permit continued equity-based awards to employees, directors and consultants.

   More detail

   This management proposal requests shareholder approval to further amend and restate the Company’s 2020 Stock Incentive Plan to increase the aggregate reserve of Shares available for equity awards to 1,815,000 (inclusive of previously granted awards), effectively increasing the unused pool by 100,000 shares above the Remaining Reserve as of the January 30, 2026 record date. Management presents the amendment as necessary because the Existing Plan’s Remaining Reserve (~258,735 Shares) is insufficient to maintain historical grant levels and to continue long-term performance awards that align management and director interests with shareholders. The proposal emphasizes that equity and performance-based awards are a significant component of total compensation, used to attract, retain and motivate key personnel, and that the amended plan is substantially identical to the Existing Plan other than the reserve increase. Management provides metrics to contextualize the request, including a three-year average burn rate (5.3%) and an estimated incremental dilution of approximately 1.5% if the additional shares were fully dilutive as of the record date, and it explains factors (net settlement practice, performance award treatment, peer group comparisons) that affect governance advisory analyses. The proposal also highlights governance safeguards in the plan: minimum vesting requirements, anti-repricing protections, limits on non-employee director annual award value, clawback/recoupment provisions, double-trigger protections for change-in-control events, and Committee discretion over award terms. Investor-relations context is provided: management notes how ISS benchmark comparisons shifted and argues that enterprise-value adjustments and net settlement practice make its burn-rate and dilution metrics more favorable than raw comparisons suggest. Potential shareholder concerns include dilution and historical grant levels; management counters with the modest size of the requested increase, the explicit design of performance-based awards, and structural safeguards intended to limit abuse. The Board recommends a FOR vote, arguing that approval will allow the Company to continue to deliver competitive, performance-linked equity awards consistent with its compensation philosophy and long-term value creation objectives.

4. 4

   Advisory Vote on Executive Compensation

   ManagementBoard: FOR

   Non-binding, advisory vote to approve the compensation of the Company’s named executive officers as disclosed in the proxy (say-on-pay).

   More detail

   This is a non-binding advisory 'say-on-pay' proposition asking shareholders to approve the disclosed compensation of the named executive officers. Management frames the program as strongly pay-for-performance: a large portion of NEO compensation is variable and equity-based (PSUs, LTIPs), PSUs in recent years are explicitly tied to rigorous metrics (absolute EBIT and EBIT ROI), LTIPs require relative EBIT ROI top-quintile performance and specific net-debt-to-capital improvements, and annual bonuses emphasize liquidity, alternative capital raises and ROAE. The Compensation Committee emphasizes governance features — mandatory multi-year vesting, two-year post-vesting delayed delivery for equity awards, clawback policy compliant with SEC/NYSE rules, stock ownership guidelines, no large tax gross-ups, and limited severance — as mitigants to excessive risk-taking. Management reports robust investor engagement and points to prior high shareholder support (e.g., ~95.6% approval in 2025) as validation of its approach. Company-specific context — significant debt reduction since 2009 but remaining leverage and elevated interest expense — explains why compensation metrics emphasize liquidity, debt reduction and operating returns rather than raw profitability versus peers. Critics could argue that aggregate CEO realizable pay remains high in some years or question the dilution from equity awards; management responds that realized pay fluctuates with stock-price movements and that award design, vesting, and rigorous performance hurdles align pay with long-term shareholder value. The Board recommends voting FOR the resolution, viewing it as endorsement of the alignment between pay design and long-term corporate strategy.

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When is the Hovnanian Enterprises Inc 2026 annual meeting?

Hovnanian Enterprises Inc (HOV) holds its 2026 annual shareholder meeting on Tuesday, March 31, 2026.

What is the record date for the Hovnanian Enterprises Inc 2026 meeting?

The record date for the Hovnanian Enterprises Inc 2026 meeting is Friday, January 30, 2026. Shareholders of record on or before that date are eligible to vote.

Who are the director nominees for Hovnanian Enterprises Inc's 2026 meeting?

The board is presenting 8 director nominees at the Hovnanian Enterprises Inc 2026 meeting, listed with their independence status and background.

What proposals will shareholders vote on at the Hovnanian Enterprises Inc 2026 meeting?

Shareholders will vote on 4 proposals at the Hovnanian Enterprises Inc 2026 meeting, each tagged with who proposed it and the board's recommendation.