TSR Award Performance Conditions Sample Clauses

The TSR Award Performance Conditions clause defines the specific criteria related to Total Shareholder Return (TSR) that must be met for an award, such as stock options or performance shares, to vest or become payable. Typically, this clause outlines how TSR is measured—often relative to a peer group or index—over a set performance period, and may include details on calculation methods, performance thresholds, and payout scales. Its core practical function is to align executive or employee incentives with shareholder value creation by ensuring that awards are only earned if the company achieves specified TSR targets, thereby motivating performance and managing compensation risk.