Lennox International Discloses New Long-Term Incentive Award Terms for Senior Employees

Lennox International Inc. laid out the terms of a new long-term incentive award agreement for U.S. vice presidents and above in a filing with the Securities and Exchange Commission.

The agreement, adopted under the company's 2019 Equity and Incentive Compensation Plan, covers three types of awards: performance share units, restricted stock units and stock appreciation rights. Participants may earn between 0% and 200% of their performance share units depending on how well the company meets goals set by the compensation committee over a defined performance period.

Restricted stock units vest in three installments of 33 1/3%, 66 2/3% and 100% over time, while stock appreciation rights vest on a single specified date and remain exercisable for up to ten years from the date of grant, subject to a base price set at grant.

The agreement sets out forfeiture rules tied to how an employee's tenure ends. Awards are cancelled if an employee is terminated for cause or leaves voluntarily before vesting, though vested stock appreciation rights remain exercisable for 90 days after a voluntary or no-cause termination. Retirement-eligible employees, defined as those at least 65 years old, at least 60 with ten years of service, or whose age plus years of service equals 75 or more, receive prorated vesting of unvested awards. Similar prorated vesting applies in cases of death or disability.

The agreement also addresses a change in control of the company. If a qualifying replacement award is not provided to a participant, unvested performance share units, restricted stock units and stock appreciation rights fully vest immediately before the change in control, with performance units vesting at the change-in-control performance level. If a replacement award is provided and the participant later experiences a qualifying termination, that replacement award fully vests at that time.

None of the awards or interests in the underlying shares may be transferred before settlement except by will or through the laws of descent and distribution.

Finazon · prior-day close · Sep 17, 2026