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Stock Ownership Guidelines for Executive Officers
Tredegar’s Executive Compensation Committee has adopted Stock Ownership Guidelines to align the interests of Tredegar’s executives with the interests of its stockholders. Stock ownership guidelines for Tredegar’s executive officers are determined as a multiple of the executive's then current base salary and then converted to a fixed number of shares using the average closing price of Tredegar common stock during the immediately preceding three (3) months. The guideline for Tredegar’s chief executive officer is set at five (5) times annual base salary. The guidelines for other executives are set within a range of one and one-quarter (1.25) to three (3) times the executive's annual base salary, depending on the executive’s position. The guidelines are re-calculated annually. Executives are required to achieve fully their respective ownership level within six (6) years (fifty percent of the requirement within three (3) years) from adoption, hiring or promotion (as applicable).
Stock Ownership Guidelines for Directors
Tredegar’s Board of Directors has adopted Stock Ownership Guidelines to align the interests of Tredegar’s outside directors with the interests of its stockholders. Outside Directors are required to hold shares of Tredegar stock in an amount equal to three (3) times the amount of the annual cash retainer paid to those directors, which amount is converted to a fixed number of shares using the average closing price of Tredegar common stock during the immediately preceding three (3) months. The guidelines are re-calculated annually. Outside Directors are required to achieve fully their respective ownership level within six (6) years (fifty percent of the requirement within three (3) years) from adoption or election (as applicable).
Counting Shares Owned
Shares that count towards satisfaction of the guidelines include:
- Shares owned outright by the executive or director or his or her immediate family members residing in the same household;
- Shares held in trust for the benefit of the executive or director or his or her family; and
- Restricted shares granted under Tredegar’s equity plans.
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