XML 80 R2.htm IDEA: XBRL DOCUMENT v3.25.4
Pay vs Performance Disclosure
 12 Months Ended
Oct. 31, 2025
USD ($)
Rank
Oct. 31, 2024
USD ($)
Rank
Oct. 31, 2023
USD ($)
Rank
Oct. 31, 2022
USD ($)
Rank
Oct. 31, 2021
USD ($)
Rank
Pay vs Performance Disclosure          
Pay vs Performance Disclosure, Table

8. PAY VERSUS PERFORMANCE

As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between “compensation actually paid” as determined under SEC requirements to our CEO and to our other NEOs and certain financial performance of the Company.

Compensation actually paid does not reflect the actual amount of compensation earned by or paid to our executive officers during a covered year. For example, $35.5 million of the $48.3 million reported as compensation actually paid for the CEO in fiscal 2024 is related to the change in fair value of awards granted in prior years and a significant portion of the change is related to the significant increase in stock price from October 31, 2023 to October 31, 2024. For further information concerning the Company’s pay-for- performance philosophy and how the Company aligns executive compensation with Company’s performance, see the Compensation Discussion and Analysis.

Fiscal
Year
(1)		 SCT Total
Compensation
for CEO		 Compensation
Actually Paid
(2) to CEO		 Average
SCT Total
Compensation
for Other
NEOs		 Average
Compensation
Actually Paid
(2) to Other
NEOs		 Cumulative
TSR		 Cumulative
Peer Group
TSR (3)		 Net
Income		 Relative EBIT
Return on
Investment
Rank vs. Peer
Group (4)
                 
                 
2025 $13,654,756 $9,378,644 $3,701,712 $3,834,977 $378.56 $181.40 $63,900,000 Rank 2
of 10
2024 $13,196,450 $48,275,823 $4,096,010 $8,113,013 $554.28 $238.31 $242,000,000 Rank 1
of 10
2023 $9,482,398 $25,775,449 $3,698,952 $7,602,823 $218.77 $147.84 $205,900,000 Rank 1
of 10
2022 $16,509,497 $6,487,161 $4,951,393 $1,554,549 $126.98 $98.87 $225,500,000 Rank 1
of 10
2021 $12,478,182 $38,816,881 $3,891,574 $11,054,990 $265.30 $138.49 $607,800,000 (5) Rank 4
of 10

(1) 

For each covered fiscal year, Mr. Ara Hovnanian served as our CEO. For fiscal years 2021 through 2023, Messrs. Sorsby and O’Connor served as our other NEOs. For fiscal 2024 and fiscal 2025, Messrs. O’Connor, Wyatt and Alexander Hovnanian served as our other NEOs.

(2) 

Amounts reported in this column are based on total compensation reported for our CEO and for other NEOs, respectively, in the Summary Compensation Table (the “SCT”) for the indicated fiscal years and adjusted as shown in the table below. Fair value of equity awards was computed in accordance with the Company’s methodology used for financial reporting purposes.

    SCT Total
Compensation		 Grant
Date fair
value of
covered
fiscal year
grants as
disclosed
in the SCT		 Year-End
fair
value of
awards
granted in
covered
fiscal
year and
unvested
at covered
fiscal year-
end		 Vest Date
fair value
of
awards
granted
and
vested in
covered
fiscal
year		 Change
in fair
value of
awards
granted
in prior
years and
unvested
at
covered
fiscal
year-end		 Change
in fair
value of
awards
granted
in prior
years and
vested in
covered
fiscal
year		 Prior
Year-End
fair value
of any
awards
forfeited
during
covered
fiscal year		 Compensation
Actually Paid
                   
                   
2025 CEO $13,654,756 -$7,093,553 $7,372,306 $0 -$1,444,890 -$3,109,975 $0 $9,378,644
  Other
NEO
Average		 $3,701,712 -$1,069,783 $999,906 $0 -$66,226 $269,368 $0 $3,834,977
2024 CEO $13,196,450 -$4,286,655 $3,824,020 $0 $21,859,977 $13,682,031 $0 $48,275,823
  Other
NEO
Average		 $4,096,010 -$848,379 $733,236 $0 $2,839,382 $1,292,764 $0 $8,113,013
2023 CEO $9,482,398 -$3,826,502 $4,116,829 $0 $8,315,871 $7,686,853 $0 $25,775,449
  Other
NEO
Average		 $3,698,952 -$1,228,745 $984,837 $0 $2,310,915 $1,885,762 -$48,898 $7,602,823
2022 CEO $16,509,497 -$3,068,492 $1,725,318 $0 -$6,433,885 -$2,245,277 $0 $6,487,161
  Other
NEO
Average		 $4,951,393 -$1,006,184 $539,213 $0 -$1,962,790 -$967,083 $0 $1,554,549
2021 CEO $12,478,182 -$3,330,082 $2,816,242 $0 $17,177,723 $9,674,816 $0 $38,816,881
  Other
NEO
Average		 $3,891,574 -$986,612 $832,163 $0 $4,934,364 $2,383,501 $0 $11,054,990

(3) 

Peer Group Total Shareholder Return is calculated based on the Company’s Proxy Statement Peer Group that was disclosed in the Compensation, Discussion and Analysis section of the Company’s Proxy Statement for fiscal 2025, weighted based on the Peer Group’s market capitalization as of October 31, 2020. In fiscal 2024, due to the merger of M.D.C. Holdings, Inc. with Sekisui House, Ltd., the Committee determined to modify the Company’s Peer Group by removing M.D.C. Holdings, Inc. and adding Dream Finders Homes, Inc. Total shareholder return amounts assume an initial investment of $100 on October 31, 2020. Dream Finders Homes, Inc. was not publicly traded at the October 31, 2020 measurement date, and, as such, its total shareholder return was calculated for the respective measurement period based on its first day of trading, January 21, 2021.

(4) 

In accordance with SEC rules, the Company is required to include in the Pay Versus Performance Table the “most important” financial performance measure (as determined by the Company) used to link compensation actually paid to our executive officers to Company performance for the most recently completed fiscal year. The Company determined that Relative EBIT Return on Investment, which is a metric included in our long-term incentive program, meets this requirement, and therefore, we have included this performance measure in the Pay Versus Performance Table. See page 114 for information regarding adjustments made to EBIT Return on Investment.

(5) 

Fiscal 2021 net income included a $468,600,000 benefit reduction in our deferred tax asset valuation allowance.

        
Company Selected Measure Name Relative EBIT Return on Investment        
Named Executive Officers, Footnote

(1) 

For each covered fiscal year, Mr. Ara Hovnanian served as our CEO. For fiscal years 2021 through 2023, Messrs. Sorsby and O’Connor served as our other NEOs. For fiscal 2024 and fiscal 2025, Messrs. O’Connor, Wyatt and Alexander Hovnanian served as our other NEOs.

        
Peer Group Issuers, Footnote

(3) 

Peer Group Total Shareholder Return is calculated based on the Company’s Proxy Statement Peer Group that was disclosed in the Compensation, Discussion and Analysis section of the Company’s Proxy Statement for fiscal 2025, weighted based on the Peer Group’s market capitalization as of October 31, 2020. In fiscal 2024, due to the merger of M.D.C. Holdings, Inc. with Sekisui House, Ltd., the Committee determined to modify the Company’s Peer Group by removing M.D.C. Holdings, Inc. and adding Dream Finders Homes, Inc. Total shareholder return amounts assume an initial investment of $100 on October 31, 2020. Dream Finders Homes, Inc. was not publicly traded at the October 31, 2020 measurement date, and, as such, its total shareholder return was calculated for the respective measurement period based on its first day of trading, January 21, 2021.

        
Changed Peer Group, Footnote

(3) 

Peer Group Total Shareholder Return is calculated based on the Company’s Proxy Statement Peer Group that was disclosed in the Compensation, Discussion and Analysis section of the Company’s Proxy Statement for fiscal 2025, weighted based on the Peer Group’s market capitalization as of October 31, 2020. In fiscal 2024, due to the merger of M.D.C. Holdings, Inc. with Sekisui House, Ltd., the Committee determined to modify the Company’s Peer Group by removing M.D.C. Holdings, Inc. and adding Dream Finders Homes, Inc. Total shareholder return amounts assume an initial investment of $100 on October 31, 2020. Dream Finders Homes, Inc. was not publicly traded at the October 31, 2020 measurement date, and, as such, its total shareholder return was calculated for the respective measurement period based on its first day of trading, January 21, 2021.

        
PEO Total Compensation Amount $ 13,654,756 $ 13,196,450 $ 9,482,398 $ 16,509,497 $ 12,478,182
PEO Actually Paid Compensation Amount $ 9,378,644 48,275,823 25,775,449 6,487,161 38,816,881
Adjustment To PEO Compensation, Footnote

(2) 

Amounts reported in this column are based on total compensation reported for our CEO and for other NEOs, respectively, in the Summary Compensation Table (the “SCT”) for the indicated fiscal years and adjusted as shown in the table below. Fair value of equity awards was computed in accordance with the Company’s methodology used for financial reporting purposes.

    SCT Total
Compensation		 Grant
Date fair
value of
covered
fiscal year
grants as
disclosed
in the SCT		 Year-End
fair
value of
awards
granted in
covered
fiscal
year and
unvested
at covered
fiscal year-
end		 Vest Date
fair value
of
awards
granted
and
vested in
covered
fiscal
year		 Change
in fair
value of
awards
granted
in prior
years and
unvested
at
covered
fiscal
year-end		 Change
in fair
value of
awards
granted
in prior
years and
vested in
covered
fiscal
year		 Prior
Year-End
fair value
of any
awards
forfeited
during
covered
fiscal year		 Compensation
Actually Paid
                   
                   
2025 CEO $13,654,756 -$7,093,553 $7,372,306 $0 -$1,444,890 -$3,109,975 $0 $9,378,644
  Other
NEO
Average		 $3,701,712 -$1,069,783 $999,906 $0 -$66,226 $269,368 $0 $3,834,977
2024 CEO $13,196,450 -$4,286,655 $3,824,020 $0 $21,859,977 $13,682,031 $0 $48,275,823
  Other
NEO
Average		 $4,096,010 -$848,379 $733,236 $0 $2,839,382 $1,292,764 $0 $8,113,013
2023 CEO $9,482,398 -$3,826,502 $4,116,829 $0 $8,315,871 $7,686,853 $0 $25,775,449
  Other
NEO
Average		 $3,698,952 -$1,228,745 $984,837 $0 $2,310,915 $1,885,762 -$48,898 $7,602,823
2022 CEO $16,509,497 -$3,068,492 $1,725,318 $0 -$6,433,885 -$2,245,277 $0 $6,487,161
  Other
NEO
Average		 $4,951,393 -$1,006,184 $539,213 $0 -$1,962,790 -$967,083 $0 $1,554,549
2021 CEO $12,478,182 -$3,330,082 $2,816,242 $0 $17,177,723 $9,674,816 $0 $38,816,881
  Other
NEO
Average		 $3,891,574 -$986,612 $832,163 $0 $4,934,364 $2,383,501 $0 $11,054,990
       
Non-PEO NEO Average Total Compensation Amount $ 3,701,712 4,096,010 3,698,952 4,951,393 3,891,574
Non-PEO NEO Average Compensation Actually Paid Amount $ 3,834,977 8,113,013 7,602,823 1,554,549 11,054,990
Adjustment to Non-PEO NEO Compensation Footnote

(2) 

Amounts reported in this column are based on total compensation reported for our CEO and for other NEOs, respectively, in the Summary Compensation Table (the “SCT”) for the indicated fiscal years and adjusted as shown in the table below. Fair value of equity awards was computed in accordance with the Company’s methodology used for financial reporting purposes.

    SCT Total
Compensation		 Grant
Date fair
value of
covered
fiscal year
grants as
disclosed
in the SCT		 Year-End
fair
value of
awards
granted in
covered
fiscal
year and
unvested
at covered
fiscal year-
end		 Vest Date
fair value
of
awards
granted
and
vested in
covered
fiscal
year		 Change
in fair
value of
awards
granted
in prior
years and
unvested
at
covered
fiscal
year-end		 Change
in fair
value of
awards
granted
in prior
years and
vested in
covered
fiscal
year		 Prior
Year-End
fair value
of any
awards
forfeited
during
covered
fiscal year		 Compensation
Actually Paid
                   
                   
2025 CEO $13,654,756 -$7,093,553 $7,372,306 $0 -$1,444,890 -$3,109,975 $0 $9,378,644
  Other
NEO
Average		 $3,701,712 -$1,069,783 $999,906 $0 -$66,226 $269,368 $0 $3,834,977
2024 CEO $13,196,450 -$4,286,655 $3,824,020 $0 $21,859,977 $13,682,031 $0 $48,275,823
  Other
NEO
Average		 $4,096,010 -$848,379 $733,236 $0 $2,839,382 $1,292,764 $0 $8,113,013
2023 CEO $9,482,398 -$3,826,502 $4,116,829 $0 $8,315,871 $7,686,853 $0 $25,775,449
  Other
NEO
Average		 $3,698,952 -$1,228,745 $984,837 $0 $2,310,915 $1,885,762 -$48,898 $7,602,823
2022 CEO $16,509,497 -$3,068,492 $1,725,318 $0 -$6,433,885 -$2,245,277 $0 $6,487,161
  Other
NEO
Average		 $4,951,393 -$1,006,184 $539,213 $0 -$1,962,790 -$967,083 $0 $1,554,549
2021 CEO $12,478,182 -$3,330,082 $2,816,242 $0 $17,177,723 $9,674,816 $0 $38,816,881
  Other
NEO
Average		 $3,891,574 -$986,612 $832,163 $0 $4,934,364 $2,383,501 $0 $11,054,990
       
Compensation Actually Paid vs. Total Shareholder Return

Compensation Actually Paid and TSR

        
Compensation Actually Paid vs. Net Income

Compensation Actually Paid and Net Income

        
Compensation Actually Paid vs. Company Selected Measure

Compensation Actually Paid and EBIT ROI Rank

        
Total Shareholder Return Vs Peer Group

Compensation Actually Paid and TSR

        
Tabular List, Table

COMPANY’S MOST IMPORTANT FINANCIAL
PERFORMANCE MEASURES

The following are the most important financial performance measures (shown in alphabetical order), as determined by the Company, that link compensation actually paid to our CEO and other NEOs to the Company’s performance for the most recently completed fiscal year.

Absolute EBIT 

Absolute EBIT Return on Investment 

Liquidity 

        
Total Shareholder Return Amount $ 378.56 554.28 218.77 126.98 265.3
Peer Group Total Shareholder Return Amount $ 181.4 $ 238.31 $ 147.84 $ 98.87 $ 138.49
Company Selected Measure Amount | Rank 2 1 1 1 4
PEO Name Mr. Ara Hovnanian Mr. Ara Hovnanian Mr. Ara Hovnanian Mr. Ara Hovnanian Mr. Ara Hovnanian
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 63,900,000 $ 242,000,000 $ 205,900,000 $ 225,500,000 $ 607,800,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount         (468,600,000)
Measure:: 1          
Pay vs Performance Disclosure          
Name Absolute EBIT        
Measure:: 2          
Pay vs Performance Disclosure          
Name Absolute EBIT Return on Investment        
Measure:: 3          
Pay vs Performance Disclosure          
Name Liquidity        
PEO          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount   35,500,000      
PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ (7,093,553) (4,286,655) (3,826,502) (3,068,492) (3,330,082)
PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 7,372,306 3,824,020 4,116,829 1,725,318 2,816,242
PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (1,444,890) 21,859,977 8,315,871 (6,433,885) 17,177,723
PEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0 0 0
PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (3,109,975) 13,682,031 7,686,853 (2,245,277) 9,674,816
PEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0 0 0
Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (1,069,783) (848,379) (1,228,745) (1,006,184) (986,612)
Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 999,906 733,236 984,837 539,213 832,163
Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount (66,226) 2,839,382 2,310,915 (1,962,790) 4,934,364
Non-PEO NEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 0 0 0 0 0
Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount 269,368 1,292,764 1,885,762 (967,083) 2,383,501
Non-PEO NEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year          
Pay vs Performance Disclosure          
Adjustment to Compensation, Amount $ 0 $ 0 $ (48,898) $ 0 $ 0