Workhorse Group (NASDAQ: WKHS) adopts 2026 cash incentive plan for executives
Rhea-AI Filing Summary
Workhorse Group Inc. approved a new Short-Term Incentive Plan (STIP) on July 20, 2026, effective January 1, 2026, covering the principal executive officer, principal financial officer and other named executive officers. The plan is designed to make a portion of annual cash compensation dependent on achieving defined performance goals.
For 2026, performance for these officers will be measured 50% on adjusted EBITDA and 50% on revenue. The Chief Executive Officer, Chief Financial Officer and Executive Vice President, Operations each have a 50% of base salary target opportunity, with actual payouts ranging from 0% to 150% of target based on results. The compensation committee may adjust targets, formulas, or cancel bonuses before they are earned. Participants generally must be employed on the payment date, subject to provisions for death, disability, qualifying retirement and change in control, and all awards remain subject to any company forfeiture, recoupment or clawback policies.
Positive
- None.
Negative
- None.
8-K Event Classification
2 items: 5.02, 9.01
2 items
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
CEO target bonus: 50% of annual base salary
CFO target bonus: 50% of annual base salary
EVP Operations target bonus: 50% of annual base salary
+1 more
4 metrics
CEO target bonus
50% of annual base salary
Target payout for fiscal 2026 performance under the STIP for the Chief Executive Officer
CFO target bonus
50% of annual base salary
Target payout for fiscal 2026 performance under the STIP for the Chief Financial Officer
EVP Operations target bonus
50% of annual base salary
Target payout for fiscal 2026 performance under the STIP for the Executive Vice President, Operations
Payout range
0% to 150% of target
Range of potential payouts for 2026 STIP performance for the officers
Key Terms
Short-Term Incentive Plan, adjusted EBITDA, clawback, change in control
4 terms
Short-Term Incentive Plan financial
"approved the Company <b>Short-Term Incentive Plan</b> (the “STIP”)"
adjusted EBITDA financial
"initial metrics chosen by the Committee for 2026 performance include <b>adjusted EBITDA</b>"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
clawback financial
"subject to any then-applicable policy relating to forfeiture, recoupment or <b>clawback</b>"
A clawback is a contractual or legal right to recover money that was already paid out—often executive bonuses, incentives, or erroneous payments—when certain conditions change, such as fraud, accounting mistakes, or failure to meet performance targets. It matters to investors because clawbacks protect shareholder value by discouraging risky or misleading behavior, can affect future cash flow and executive incentives, and signal stronger governance, much like a store recalling a refund after discovering it was issued in error.
change in control regulatory
"subject to provisions relating to termination ... and the <b>change in control</b> provisions"
A "change in control" occurs when the ownership or management of a company shifts significantly, such as through a merger, acquisition, or sale of a large part of its assets. This change can impact how the company is run and may influence its future direction. For investors, it matters because it can affect the company's stability, strategy, and value, often signaling potential changes in investment risk or opportunity.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What compensation plan did WKHS approve for executives in 2026?
Workhorse Group (WKHS) approved a Short-Term Incentive Plan effective January 1, 2026, for key executives. It ties a portion of their cash compensation to specific annual performance goals, replacing purely fixed-pay structures with performance-based bonuses.
Which performance metrics drive the 2026 STIP bonuses at WKHS?
The 2026 STIP for WKHS executives is based 50% on adjusted EBITDA and 50% on revenue. These two metrics determine the annual cash bonus calculation, subject to the compensation committee’s discretion to adjust methodology and targets before bonuses are earned.
What are the 2026 bonus targets for WKHS’s CEO, CFO and EVP Operations?
For 2026, WKHS set each of the CEO, CFO and Executive Vice President, Operations a 50% of base salary target bonus under the STIP. Actual payouts can be higher or lower depending on performance against adjusted EBITDA and revenue goals.
What payout range can WKHS executives earn under the 2026 STIP?
Under the 2026 STIP, WKHS executives may receive from 0% to 150% of target bonus. The actual payout depends on performance versus goals, with the compensation committee retaining authority to adjust or cancel bonuses before they are earned.
Are WKHS STIP bonuses subject to clawback or employment conditions?
Yes. WKHS requires STIP participants generally to be employed on the payment date, with exceptions for death, disability, qualifying retirement and change in control. Awards are also subject to any applicable forfeiture, recoupment or clawback policies in effect.