Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 47

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 47
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Every year, pursuant to its charter, the Compensation and Human Capital Committee evaluates the compensation of our non-employee directors, including the respective chairperson fees, and recommends any changes it deems advisable to the full board of directors, which is responsible for adopting the final form and amount of non-employee director compensation. As part of its annual review, the Compensation and Human Capital Committee receives comparative peer and industry data and recommendations from its independent compensation consultant, Pay Governance. This peer group is the same one used for executive compensation and discussed on page 45. Recognizing there are timing differences in the data and variability year to year, the Compensation and Human Capital Committee and the board attempt to ensure non-employee director compensation, including chairperson fees, is competitive with the corresponding market median compensation levels. In 2024, based on market pay trends, the comparison to the peer group compensation elements (taking into account the Company’s relative size at the 78th percentile for total revenues), and the length of time since the base director compensation changed, the board increased the annual cash retainer by $10,000 and the annual equity grant by $15,000. Based on the comparisons to the peer group chair fees and the increased time commitment associated with the roles, the board also increased the non-executive chairman fee and the chairperson fee for the Compliance and Quality of Care Committee by $25,000 and $5,000, respectively. Additionally, the terms of our 2016 Omnibus Performance Incentive Plan, approved by our stockholders in 2016, establish a maximum value ($300,000) for both the equity awards granted and the cash fees paid to a non-employee director in a given year. The total of both cannot exceed $600,000.

In 2024, we provided the following annual compensation to directors who are not employees:

| Name                   |     | Fees Earnedor Paidin Cash ($)(1) |     | StockAwards($)(2) |     | All OtherCompensation($)(3) |     | Total ($) |
| Greg D. Carmichael     |     |                          213,077 |     |           165,005 |     |                       7,597 |     |   385,679 |
| John W. Chidsey*       |     |                           33,516 |     |                 — |     |                      28,295 |     |    61,811 |
| Edward M. Christie III |     |                          106,648