median includehave included the experience and performance of the officer, internal equity, and the impact of the role upon the organization. At the highest level of achievement, the annual cash incentive opportunity for our named executive officers was 200% of the target opportunity in 2019.2020. At a threshold level of performance, the incentive opportunity was 50% of the target in 2019,2020, with no incentive earned if performance was below the threshold achievement level.
2020 LONG-TERM INCENTIVE AWARDS
The Compensation Committee
approvesapproved 2020 LTIP awards
on an annual basis for the named executive officers and other senior executives of the Company. LTIP awards
arewere granted under the Cooper Tire & Rubber Company 2014 Incentive Compensation Plan, which allows for a variety of forms of long-term incentives. For
2019,2020, awards of RSUs, PSUs, and Performance Cash were granted, with each weighted approximately one-third of the total award. In determining the appropriate form or mix of long-term incentive awards, the Compensation Committee
considersconsidered such factors as alignment with stockholder interests, the attraction and retention of executive talent,
and the affordability of certain
awards, and other business objectives which may prescribe or suggest the form or mix of awards at a particular time in the business cycle.awards. The size of long-term incentive grants was determined with reference to the competitive benchmarking described on page
1920, the Cooper Tire stock price, as well as individual performance and potential, contributions, and other long-term considerations.
The grant date is typicallyfor the 2020 awards was the date of our February Compensation Committee meeting. For most new executives,hires, including Ms. Whitesell, the grant date may be as-of,has generally occurred as of, or shortly after, the hiring date of the newly eligible executive. The methodology to determine the number of units to grant iswas to average the high and low trading price of our common stock, as quoted on the New York Stock Exchange, on the date of grant.
Key design features of our 2020 PSUs and Performance Cash grants include:included:
One-year measurement periods within a three-year performance period;
AtAnticipation that at the start of each year, specific financial metrics arewould be set;
AtExpectation that at the end of each year within athe three-year performance period, PSUs and Performance Cash cancould be notionally earned based on the extent to which financial targets for the awards have been achieved;
Payout opportunities can rangeranging from 0% to 200% of the target award opportunity;
Notionally earned PSUs and Performance Cash, if any, designed to vest and arebe payable at the end of the three-year cycle, with PSUs payable in shares of common stock and Performance Cash awards settled in cash;
Dividend equivalents, which are credited to notionally earned PSUs, aredesigned to be reinvested into additional stock units and paid at the end of the three-year cycle with the underlying and vested PSUs. PSUs that have not been notionally earned do not receive dividend equivalents; and
Since the overall performance period for each performance-based grant iswas designed to be three years, participants can have overlapping three-year award opportunities active at any time.
The financial metrics for the 20192020 LTIP measurement period of the 2017-2019, 2018-2020, 2019-2021, and 2019-20212020-2022 performance periods approved by the Compensation Committee at the beginning of 20192020 were net income (80% weighting) and return on invested capital (20% weighting). The Compensation Committee selected these performance metrics because net income and return on invested capital arewere considered essential earnings and profitability measures related to the strategic and financial goals of the Company over each measurement period and the full three-year performance period. Metrics are typicallywere established in February, each year, allowing for incentive targets to be generally aligned with the 2020 annual operating plan and to account for anticipated factors which maythat might be expected to impact final results.
The ultimate value of performance-based stock units iswas designed to be based on the Company's financial results and the stock price, which alignswas intended to align with long-term stockholder value creation. The ultimate value of performance-based cash iswas designed to be based solely on performance against the financial metrics. In 2019,2020, the potential payout on each of the financial metrics included a threshold, target, and maximum award level, with a range from 0% to 200% of target.
The size of restricted stock grants was determined with reference to the competitive benchmarking described on page
1920, the Cooper Tire stock price, as well as individual performance, contributions and other long-term considerations.
2020 SPECIAL AWARDS
Ms. Whitesell joined the company on July 27, 2020. Unique elements of her compensation package included the following: a prorated 2020 AIP payable in 2021, a prorated 2020 LTIP grant, a $50,000 sign on bonus, and 10,000 Restricted Stock Units which vest on July 27, 2023.