Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 327

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 327
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 Winning Performance Team Incentive Plan provides for annual incentive awards for eligible non-executives, and the EAIP provides for annual incentive awards for eligible executives, including the NEOs. 

The EAIP is designed to encourage and reward executives for successfully achieving annual financial and operational goals.  For 2025, the annual incentive payment for each NEO other than the retired CEO was calculated as follows:

EAIPAmount=AnnualSalary×Annual TargetIncentiveOpportunity×Percent of EnterpriseScorecardOpportunityAchieved(0% to 200%)×IndividualPerformanceMultiplier(0% to 150%)

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The EAIP award for the retired CEO was calculated in the same manner as those awards for other NEOs except that the Scorecard Achievement ranged from 0 percent to 150 percent instead of 0 percent to 200 percent.

Each component of this calculation other than annual salary is discussed below.  The award for certain participants in the EAIP may be adjusted by the participant's supervisor based on an evaluation of the participant's individual achievements and performance during the year.  In addition, pursuant to discretion granted under the TVA Compensation Plan and EAIP, awards may be further adjusted by the TVA Board in its discretion.  There is no guaranteed minimum payout under the EAIP, and the maximum payout for the EAIP cannot exceed 225 percent of the target award for all participants other than the retired CEO.  For the retired CEO, the maximum payout cannot exceed 150 percent of the target award.

EAIP Target Incentive Opportunity.  Following a review of benchmarking and individual performance, the TVA Board evaluated the appropriateness of the EAIP award opportunity for the retired CEO based on market data and other individual factors and made no changes for 2025.  Similarly, the retired CEO evaluated the appropriateness of the EAIP award opportunities for the other NEOs based on market data and other individual factors, including internal equity, and made no changes for 2025.  Incentive opportunities for Mr. Moul, Mr. Rice, Ms. Tolene, and Mr. Fisher increased during the year as a result of their promotions.  Accordingly, target EAIP award opportunities associated with the NEO's last position held in 2025 were as follows:

NEO2025 EAIP Target IncentiveOpportunity(1)Donald A. Moul110%Jeffrey J. Lyash 150%Thomas C. Rice75%John M. Thomas, III 80%Matthew M