Additionally, in April 2021, we further reduced the number of shares covered by stock option awards and added TRSUs as a component of the overall executive compensation program. Most recently, in April 2023, we added EPRSUs to augment the overall executive compensation program, again reducing the number of stock option shares. EPRSU awards focus on the compounded growth of the Company’s diluted EPS, a metric that we believe is a meaningful measurement of value provided to stockholders. These changes were made, in part, to address the negative impacts on stock options of dividend distributions, to encourage increased holdings of our stock, and to retain talent over the long-term.
In April 2023, 2022 and 2021, the independent members of the Board awarded to Mr. Watson options to purchase 5,000 shares, 10,000 shares and 10,000 shares of our Common Stock, respectively, and PRSUs with the targeted number of shares available for issuance equal to 5,000 shares, 10,000 shares and 10,000 shares of our Common Stock, respectively. The vesting period for each stock option is three years. Each PRSU award vests on the third anniversary of the award, with the number of issuable shares based on the price performance of our Common Stock compared to the price performance of the common stock of each award’s designated peer group. Additionally, in April 2023, 2022 and 2021, the independent members of the Board approved the awards of TRSUs covering 12,000 shares, 10,000 shares and 10,000 shares, respectively, to Mr. Watson. In April 2023, the independent members of the Board awarded EPRSUs to Mr. Watson with 10,000 shares targeted for issuance. The number of shares issuable pursuant to the EPRSU award will be determined on the three-year anniversary of award based on the sum of our EPS amounts for the fiscal years ending January 31, 2024, 2025 and 2026 compared to target compounded growth EPS amounts based on the sum of our EPS amounts for the fiscal years ended January 31, 2021, 2022 and 2023.
Likewise, in April 2023, the independent members of the Board awarded to Mr. Deily options to purchase 2,500 shares of our Common Stock, with vesting over a three-year period. In September 2022, when Mr. Deily was promoted to the position of CFO, he was awarded PRSUs with the number of issuable shares targeted at 2,500 shares, and with the same vesting terms as included in the PRSU award made to Mr. Watson in April 2023. Additionally, the independent members of the Board approved the award of TRSUs covering 12,500 shares to Mr. Deily in September 2022. In April 2023, Mr. Deily was awarded EPRSUs with the targeted number of shares available for issuance equal to 2,500 shares. The actual number of issuable shares will be determined based on the same vesting terms as included in the EPRSUs awarded to Mr. Watson in April 2023.
In April 2022 and 2021, the independent members of the Board awarded to Mr. Bosselmann three-year stock options with each award covering 12,500 shares of our Common Stock, and PRSUs with the targeted number of shares available for issuance for each award equal to 12,500 shares of our Common Stock. The PRSUs include the same vesting terms as included in the PRSU awards made to Mr. Watson in April 2022 and April 2021. Additionally, the independent members of the Board approved the awards of TRSUs covering 12,500 shares of our Common Stock to Mr. Bosselmann in both April 2022 and 2021.
Depending on the price performance of our Common Stock compared with the 2023 Peer Group, the maximum numbers of shares of Common Stock (200% of the target number of shares) that Mr. Watson and Mr. Deily may earn over the three-year stock price performance period of the PRSUs awarded in April 2023 and September 2022, respectively, are 10,000 shares and 5,000 shares, respectively, plus adjustments for cash dividends, as determined based on the stock-earning scale presented below:
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Rank | | 13th | | 12th | | 11th | | 10th | | 9th | | 8th | | 7th | | 6th | | 5th | | 4th | | 3rd | | 2nd | | 1st | |
Percentile | | — | % | 8.3 | % | 16.6 | % | 25.0 | % | 33.3 | % | 41.6 | % | 50.0 | % | 58.3 | % | 66.6 | % | 75.0 | % | 83.3 | % | 91.6 | % | 100.0 | % |
Payout | | — | % | — | % | — | % | — | % | — | % | — | % | 100 | % | 100 | % | 150 | % | 200 | % | 200 | % | 200 | % | 200 | % |
The performance criteria for the EPRSUs awarded to Mr. Watson and Mr. Deily in April 2023 will be based on the sum of our EPS for the fiscal years ending January 31, 2024, 2025 and 2026 compared to target compounded growth EPS amounts that are based on the sum of our EPS for the fiscal years ended January 31, 2021, 2022 and 2023. The maximum number of shares of Common Stock (200% of the target number of shares) that Mr. Watson and Mr. Deily may earn over the three-year measurement period of the EPRSUs are 20,000 and 5,000, respectively, plus adjustments for cash dividends as determined based on the diluted EPS compounded growth scale presented below:
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Diluted EPS Compound Growth Rate | | < 5.0 | % | | 5.0 | % | | 7.5 | % | | 10.0 | % | | 15.0 | % | | 20.0 | % | | 25.0 | % | | 30.0 | % |