Sign in

    Ara K. Hovnanian

    Chairman of the Board, Chief Executive Officer, President, and Director at Hovnanian Enterprises Inc
    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 Inc

    AH
    Alexander Hovnanian
    Executive Vice President, National Homebuilding Operations
    BGO
    Brad G. O’Connor
    Chief Financial Officer
    MW
    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

    OrganizationRoleDate RangeDetails
    Hovnanian Enterprises, Inc. Executive Vice President1983 - 1988 Held position prior to appointment as President
    Hovnanian Enterprises, Inc. Vice Chairman1998 - November 2009 Role ended upon his elevation to Chairman following his father's death

    Fixed Compensation

    Data from  FY 2024
    Component NameAmountPayment ScheduleAdditional Details
    Salary$1,150,442 Fiscal 2024Fixed base salary for fiscal 2024
    Change in Pension Value and Nonqualified Deferred Compensation Earnings$76,349 Fiscal 2024Fixed benefit adjustment as reported
    All Other Compensation$683,004 Fiscal 2024Includes 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)

    MetricThresholdTargetMaximumAchievement / Payout
    ROAE0.00% 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 ProfitN/AN/AN/A$350.4M achieved
    Bonus CapN/AN/A$7,000,000 cap imposed

    LTIP Awards (Fiscal 2024)

    DetailInformation
    Performance MetricsRelative EBIT Return on Investment; Net Debt to Capital
    Performance Period3-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 DateDecember 14, 2023
    Grant Date Fair Value$5,031,478 total
    Award Structure50% 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)

    DetailInformation
    Performance MetricsAbsolute EBIT Levels and Absolute EBIT Return on Investment
    Absolute EBIT LevelsThreshold: $300M (50% payout), Target: $325M (100% payout), Maximum: $375M or more (200% payout)
    Absolute EBIT Return on InvestmentPayout structure similar to EBIT Levels (exact thresholds not detailed)
    Grant DateJune 14, 2024
    Grant Date Fair Value$1,137,048 per metric; Total Fair Value: $2,274,096
    Vesting ScheduleVesting on the 3rd anniversary of the grant date (June 14, 2027) with a 2-year delayed delivery until June 14, 2029
    Number of PSUsFor 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.