Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 586

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 11
Chunk 586
---
 percentage to be retention oriented, or LTR grants. Long-Term Retention Award Incentivize retention by providing "fixed" retention-based grants tied to a three-year vesting schedule•LTR grants will vest and pay out in three equal increments annually over three years, subject to the participant being employed through such dates, but are payable upon death, disability, or retirement if earlier on a pro-rated basis.•Since TVA issues no equity, TVA offers retention grants to be competitive with the industry marketplace for talent, providing a retention incentive similar to restricted stock or restricted stock units.  These grants are intended to encourage executives to remain with TVA and to provide, in combination with salary, EAIP, and LTP grants, a competitive level of TDC.Note(1)  Typically reviewed annually.

Salary

Annual salary is considered a "fixed" compensation component.  Salary levels are typically reviewed annually to consider individual performance and/or changes in benchmark salaries.

The 2025 salaries for the NEOs are reported in the Executive Compensation Tables and Narrative Disclosures — Summary Compensation Table. 

Executive Annual Incentive Plan

All TVA employees (including NEOs) participate in an annual, short-term incentive program (subject to eligibility requirements), since every employee contributes to the success of TVA and the execution of its public power mission.  While the measures used for annual incentives are the same for all employees, they are provided under two plans:  the 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%)

166

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.