NVR INC 8-K

What Happened

• NVR, Inc. announced on a Form 8‑K filed May 15, 2026 that its Compensation Committee granted non‑qualified stock options on May 14, 2026 to four executive officers. Recipients include Paul C. Saville (Executive Chairman), Eugene J. Bredow (President & CEO), Daniel D. Malzahn (SVP, CFO & Treasurer) and Matthew B. Kelpy (VP, Chief Accounting Officer & Controller).
• Each award was split into two equal parts: a time‑based option that vests 100% on December 31, 2028 if the executive remains employed, and a performance‑based option that vests on the same date subject to NVR’s return on capital performance for 2026–2028. The exercise price for all options is $5,720.10 per share (the closing price on May 13, 2026). Grants were made under the NVR, Inc. 2018 Equity Incentive Plan.

Key Details

• Grants and recipients: Paul C. Saville 5,238 options; Eugene J. Bredow 5,238; Daniel D. Malzahn 2,670; Matthew B. Kelpy 544. Total granted = 13,690 options.
• Grant date: May 14, 2026; Filing date: May 15, 2026.
• Exercise price: $5,720.10 per share (closing price day before grant).
• Vesting: Half time‑based (100% on Dec 31, 2028 with continued employment); half performance‑based (vesting depends on return on capital over 2026–2028).

Why It Matters

• These grants align senior management pay with long‑term stock performance and return on capital, potentially motivating multi‑year operational performance.
• The options, if exercised, will increase outstanding shares (dilution) and could affect future earnings per share depending on exercise activity, but the awards vest only with continued employment and/or achievement of return‑on‑capital goals.