Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 331

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 331
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 unit will start without relying on external power and perform as intended.  CT Economic Starting Reliability excludes GADS events classified as outside management control and variances.

In setting the goal for each measure, consideration is given to TVA's historic performance, its strategic business plan priorities and strategic benchmarking goals, customer and stakeholder feedback, environmental and regulatory concerns and goals, and the competitive environment.  Achievement of the target goal would result in a 100 percent payout with respect to that goal.  A threshold goal is also set for each measure, so that no award payout would occur with respect to a measure when

performance fails to achieve that threshold.  Correspondingly, performance that equals or exceeds the stretch goal for each measure can result in a maximum earned award for that measure.  A stretch goal for each measure is set to incentivize and reward exceptional performance.  Linear interpolation is used for results between threshold and stretch goals.

2025 Enterprise Scorecard Results.  The performance results on the 2025 TVA Enterprise Scorecard are set forth below.  TVA's Enterprise Scorecard is based on a scale of 0 percent to 200 percent for all participants other than the retired CEO and resulted in a 145.6 percent of target opportunity payout.  For the retired CEO, TVA's Enterprise Scorecard is based on a scale of 0 percent to 150 percent and resulted in a 114.8 percent of target opportunity payout.

Individual Performance Multiplier.  Annually, individual goals for the NEOs are established at the beginning of each performance cycle.  These goals tie to the achievement of TVA's mission and strategic priorities.  The NEOs are evaluated on these individual performance goals and TVA established leadership competencies.

At the end of the performance period, the CEO assesses the performance of the other NEOs and determines any individual multiplier, in consultation with the Committee.  For each NEO, the individual performance multiplier can range between 0 percent to 150 percent of the calculated payout and can be used to reduce (multiplier below 100 percent) or increase (multiplier above 100 percent) the amount of the award.  The CEO reviews his or her direct reports' performance with the Committee prior 

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to finalizing end of year payouts for the CEO's direct reports, informs the Committee of any discretion under consideration, and determines final payouts after informing the Committee Chair and the Committee's independent compensation consultant.  

For the CEO individual performance multiplier, each TVA Board member assesses the