Company: SOJE
Filing Date: 2025-03-31
Form Type: PRE 14A
Source: 0000092122-25-000032
Chunk: 47

Company: SOUTHERN CO
Filing Date: 2025-03-31
Form: PRE 14A
Chunk 47
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 the achievement of our long-term EPS growth objectives is in the best interest of stockholders, rather than absolute comparisons of year-over-year GAAP results. This approach focuses on the long-term EPS growth trajectory and, when setting the EPS goal, considers unique factors that may have impacted the prior year’s results, such as weather-related revenue and expenses; regulatory, legislative or policy changes from federal or state authorities; and the impact of acquisitions and dispositions. 
 The Committee calibrates the EPS goal to align with our publicly announced guidance range and considers industry comparisons and growth expectations to establish the threshold, target and maximum performance levels. This process resulted in the Committee setting the following EPS goal for 2024.                                                                                                                                                                                                                                                                     |     |                    |     |                                 |     |                                    |
| Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     | EPS Guidance Range |     | EPS Target (Middle of Guidance) |     | Year over Year EPS Target Increase |
| 2024                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     | $3.95 - $4.05      |     |                           $4.00 |     | $0.40 (11%)                        |
| For 2025, the Committee set a target EPS goal of $4.25 reflecting the middle of the 2025 EPS guidance range.                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 When determining payouts on the financial goals, the Committee remains actively engaged at every regular Committee meeting in reviewing potential EPS or net income adjustments. In approving these adjustments, the Committee considers:                                                                                                                                                                                                                                                                                                                                   
 4Whether the item was contemplated in the financial plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 4Whether the item was outside of normal operations (one-time versus recurring item or something outside of management’s control)                                                                                                                                                                                                                                                                                                                                                                                                                                            
 4Whether the pay outcome would align with stockholder interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     |                    |     |                                 |     |                                    |

#### Operational Goal Setting Process
| Belief:The Committee believes that operational goal targets should be set at challenging levels to achieve and drive top quartile performance and continuous improvement                                                                                                                                                                             |
| The Committee establishes operational goals that are primarily based on industry benchmarks, with the objective of delivering top quartile results, and top decile where appropriate, compared to industry peers. For goals that do not have a comparable industry benchmark, the Committee sets stretch targets to motivate continuous improvement. 
 As part of its goal-setting process, the Committee reviews previous goals and performance along with input from the Operations, Environmental and Safety Committee on operational goals to appropriately align the threshold, target