Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 26

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 26
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 officer). See “Compensation Discussion and Analysis” beginning on page 40for more information on how the current incentive compensation programs are administered.

Permissible Awards. The 2025 Plan authorizes the granting of awards in any of the following forms:

Stock Options . The Committee is authorized to grant incentive stock options or non-qualified stock options for our common stock. The terms of an incentive stock option must meet the requirements of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). No more than one million incentive stock options may be issued under the 2025 Plan. The exercise price of an option may not be less than the fair market value (as defined in the 2025 Plan) of the underlying stock on the date of grant, and no option may have a term of more than 10 years. Participants may elect to exercise stock options by means of a cashless exercise or a net settlement.

Stock Appreciation Rights . SARs provide the holder the right to receive the excess, if any, of the fair market value of one share of common stock on the date of exercise, over the base price of the SAR as determined by the Committee, which will not be less than the fair market value of one share of common stock on the grant date.

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SARs may be payable in cash or shares of common stock or a combination thereof. No SAR may be exercised more than 10 years from the grant date.

Restricted Stock Awards . Restricted stock awards are shares of common stock subject to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote restricted stock or the right to receive dividends, if any, on the restricted stock). Customarily, our restricted stock has been granted voting rights prior to vesting.

Restricted Stock Units . Restricted stock units are rights to receive shares of common stock or their economic value in the future and subject to such restrictions on transferability and other restrictions as the Committee may impose. Upon lapse of such restrictions, shares of common stock or cash may be issued to the participant in settlement of the restricted stock units.

Performance Awards . Performance awards may be designated in cash, shares of common stock, restricted stock, or restricted stock units. The Committee will have the complete discretion to set performance goals and other terms or conditions that will determine the number and value of performance awards that will be paid to the participant.

Cash Awards . The Committee is authorized to confer rights to participants to