AAR Ties CEO's $15M Award to a Doubling of the Stock Price
AIR sits 77% above its 52-week low of $71.43.
Summary
AAR granted CEO John Holmes a $15 million performance-based restricted stock award that vests only if the stock price reaches $175, $200, and $250—representing a potential doubling of the company's value from fiscal year-end 2026.
Key Events · Executive and Board Changes · AIR
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CEO Granted $15M Performance Award
Chairman, CEO and President John M. Holmes received 161,500 performance-based restricted shares, with a targeted grant date fair value of approximately $15 million.
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Vesting Tied to Aggressive Stock Price Hurdles
The award vests in thirds at 30-day VWAP thresholds of $175, $200, and $250—premiums of 35%, 54%, and 93% over the $129.47 grant date closing price. Full vesting requires the stock price to more than double from the end of FY2026.
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Five-Year Cliff Vesting with Retention Focus
The award cliff vests on July 31, 2031, subject to continued service, with pro-rata vesting upon a change in control or certain terminations.
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Alignment with Shareholder Value Creation
This 100% performance-based grant is separate from regular annual compensation and designed to incentivize outsized share price appreciation. The board cited Holmes' record of strong performance and strategic leadership.
Analysis · AIR · Manufacturing
In a move that directly links CEO pay to shareholder returns, AAR's board granted John Holmes a special performance-based restricted stock award valued at approximately $15 million. Vesting hinges entirely on the stock reaching $175, $200, and $250—premiums of 35% to 93% above the grant date price. The five-year award signals the board's confidence in the company's growth trajectory, coming on the heels of record FY2026 results and a recent strategic realignment.
At the time of this filing, AIR was trading at $126.25 on NYSE in the Manufacturing sector, with a market capitalization of approximately $5.2B. The 52-week trading range was $71.43 to $146.75. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.