Ara K. Hovnanian

Chairman of the Board, Chief Executive Officer, President, and Director at HOVNANIAN ENTERPRISES

Board

Since July 1997

Age

67 years

Tenure

Joined the company in 1979 and held roles including Director (1981), Executive Vice President (1983), President (1988), CEO (July 1997), and Chairman (November 2009).

Also at HOVNANIAN ENTERPRISES

Alexander Hovnanian

Executive Vice President, National Homebuilding Operations

BGO

Brad G. O’Connor

Chief Financial Officer

Michael Wyatt

Chief Operating Officer

About

Ara K. Hovnanian has a long and distinguished career with Hovnanian Enterprises, Inc., where he began his tenure in 1979 and quickly rose through the ranks to become Director in 1981, Executive Vice President in 1983, and President in 1988.

He has served as Chief Executive Officer since July 1997 and later took on the role of Chairman in November 2009 following his father, the founder of the company, solidifying his leadership in the organization.

Throughout his extensive career, he has played a key role in driving strategic growth and positioning the company as one of the major homebuilders in the United States, while also engaging in international strategic initiatives.

$HOV Performance Under Ara K. Hovnanian

Past Roles

Organization	Role	Date Range	Details
Hovnanian Enterprises, Inc.	Executive Vice President	1983 - 1988	Held position prior to appointment as President
Hovnanian Enterprises, Inc.	Vice Chairman	1998 - November 2009	Role ended upon his elevation to Chairman following his father's death

Fixed Compensation

Data from FY 2024

Component Name	Amount	Payment Schedule	Additional Details
Salary	$1,150,442	Fiscal 2024	Fixed base salary for fiscal 2024
Change in Pension Value and Nonqualified Deferred Compensation Earnings	$76,349	Fiscal 2024	Fixed benefit adjustment as reported
All Other Compensation	$683,004	Fiscal 2024	Includes Term Life Insurance Premiums ($5,087 ), 401(k) contributions ($20,700 ), and EDCP contributions ($461,234 ); additional items may be included in total

Performance Compensation

Data from FY 2024

Annual Bonus (Fiscal 2024)

Metric	Threshold	Target	Maximum	Achievement / Payout
ROAE	0.00% earns 0.00% of Pre-tax Profit	10.00% earns 1.25% of Pre-tax Profit	20.00%+ earns 2.00% of Pre-tax Profit	34.6% achieved; bonus calculated as 2.00% of Pre-tax Profit but capped at $7,000,000
Liquidity Balances	≥ $200M for fewer than 2 quarters: $0	≥ $200M for three quarters: $1,050,000	≥ $200M for all 4 quarters: $1,400,000	Achieved maximum with all quarters above target
Alternative Capital Raises	≤ $150M: $0	$200M: $1,050,000	≥ $250M: $1,400,000	$574.3M raised, exceeding maximum
Pre-tax Profit	N/A	N/A	N/A	$350.4M achieved
Bonus Cap	N/A	N/A	$7,000,000 cap imposed

LTIP Awards (Fiscal 2024)

Detail	Information
Performance Metrics	Relative EBIT Return on Investment; Net Debt to Capital
Performance Period	3-year period (Fiscal 2024, 2025, and 2026) with vesting on October 31, 2026 and a 2-year post-vesting delay to October 31, 2028
Grant Date	December 14, 2023
Grant Date Fair Value	$5,031,478 total
Award Structure	50% in shares, 50% in phantom shares ; Share portion: Threshold = 0, Target = 7,796 shares, Maximum = 19,490 shares ; Phantom portion: Threshold = 0, Target = 6,247 shares, Maximum = 15,618 shares

PSU Awards (Fiscal 2024)

Detail	Information
Performance Metrics	Absolute EBIT Levels and Absolute EBIT Return on Investment
Absolute EBIT Levels	Threshold: $300M (50% payout), Target: $325M (100% payout), Maximum: $375M or more (200% payout)
Absolute EBIT Return on Investment	Payout structure similar to EBIT Levels (exact thresholds not detailed)
Grant Date	June 14, 2024
Grant Date Fair Value	$1,137,048 per metric; Total Fair Value: $2,274,096
Vesting Schedule	Vesting on the 3rd anniversary of the grant date (June 14, 2027) with a 2-year delayed delivery until June 14, 2029
Number of PSUs	For both metrics: Threshold = 4,772 PSUs, Target = 9,543 PSUs, Maximum = 19,086 PSUs

These performance compensation components detail the metrics, targets, vesting, and actual results leading to payouts for fiscal 2024, with all amounts and share metrics as reported in the documents.