v3.26.1
Note 9 - Incentive and Retirement Plans
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Retirement Benefits [Text Block]

Note 9 Incentive and Retirement Plans

 

In 2006, we implemented an Employee Incentive Plan for employees other than executive officers and a Management Incentive Plan for executive officers (collectively the 2006 Plan). In 2015, our BOD adopted, and our shareholders approved our 2015 Employee Stock Plan (2015 Plan), which permits the issuance of up to 200,000 shares of our Common Stock in stock awards for performance under the 2006 Plan. Each qualified employee of the Company may elect to receive up to 50% of their incentive compensation in Company Common Stock in lieu of cash. Each Company executive officer is required to receive 50% of their incentive compensation earned in Company Common Stock in lieu of cash. As of June 30, 2026, 137,446 shares remain available to be issued under the 2015 Plan.

 

Long-Term Cash Based Awards

 

On March 27, 2025, the Compensation Committee and the Board adopted a new cash-based long-term incentive plan (2025 Plan). The 2025 Plan is a 3-year, cash-based long-term incentive and retention arrangement which measures Operating Income Before Interest, Taxes, Depreciation, and Amortization (OIBITDA) and entails continued service with Nuvera throughout a 3-year period. Awards will be made annually (subject to the Compensation Committee’s oversight on plan design, which may change from time to time) with 3-year overlapping cycles, and performance measured each individual year. Vesting is based (i) on achievement of predetermined OIBITDA targets set annually and (ii) on continued service with Nuvera through the end of the 3-year performance cycle. Cash payouts will be made at the end of the 3-year cycle. OIBITDA performance targets for each year within the 3-year period will be aligned with an approved operating budget for that year.

 

Cash-based awards currently issued and outstanding are as follows:

 

   

Targeted

           
   

Performance-Based

         

Vesting

   

Cash

   

Vested

 

Date

Balance at December 31, 2024

  $ -     $ -    

Issued

  $ 432,245     $ -  

1/1/2028

Balance at December 31, 2025

  $ 432,245     $ -    

Issued

  $ 476,840     $ -  

1/1/2029

Balance at June 30, 2026

  $ 909,085     $ -