ADTRAN Holdings Establishes 3-Year Performance Share Plan (2026-2028) Tied to Adjusted EBIT and TSR
ADTRAN Holdings, Inc. has established a new 3-Year Performance Shares Agreement, effective for the period spanning January 1, 2026, to December 31, 2028. This agreement grants Restricted Stock Units (Performance Shares) under the company's 2024 Employee Stock Incentive Plan, with vesting contingent on both time-based conditions and the achievement of specific performance goals. The primary performance metric is Adjusted EBIT, which will be further adjusted based on Total Shareholder Return (TSR), aiming to align executive compensation with long-term shareholder value creation. While specific financial targets for Adjusted EBIT are redacted, the plan outlines a clear framework for performance-based equity awards.
Key Highlights
- ADTRAN Holdings, Inc. granted Performance Shares (Restricted Stock Units) under its 2024 Employee Stock Incentive Plan.
- The Performance Period for these awards is a three-year term, commencing on January 1, 2026, and concluding on December 31, 2028.
- Vesting of Performance Shares is subject to the satisfaction of two conditions: a time-based condition and the achievement of performance goals.
- The primary performance goal for vesting is the level of Adjusted EBIT achieved by the end of the Performance Period.
- The number of Performance Shares earned will be adjusted based on the company's Total Shareholder Return (TSR).
- The Adjusted EBIT target for 100% award achievement in 2028 and the threshold for any award are redacted in the filing, but failure to meet the threshold results in forfeiture of the award.
Price Impact
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