Company: SOJE
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0000092122-25-000036
Chunk: 54

Company: SOUTHERN CO
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 54
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 generation and distributed infrastructure)

#### Southern Company2025 Proxy Statement55

### Compensation Discussion and Analysis

#### Setting The Quantitative Component
To achieve the Company’s goal of reducing GHG emissions, a significant change in the Company’s generation fleet is required. The magnitude of change to the generation fleet necessary to meet the Company’s GHG reduction goals requires a long-term effort, begun years ago and ongoing, due to lead times associated with adding new generation resources, lead times associated with adding new transmission facilities, retiring existing generation resources, navigating and complying with regulatory approval procedures and maintaining reliability and affordability for customers.

Generation changes are “lumpy,” meaning the MW transition does not follow a straight line. Rather, the MW change will be larger in some years than in other years due to the discrete size of individual generation units and the lead times to implement the changes.

The GHG metric is based on the cumulative, realized actual change in MW over a forward-looking three-year performance period. Achievement of the metric is based on the actual date when new zero carbon and renewable generation begins commercial operation or when coal or gas steam generation is permanently removed from routine generation operations and dispatch. For the 2024-2026 performance period, the target cumulative MW change was set based on the 2021 projected MW change in 2024-2026 consistent with meeting the Company’s interim decarbonization goal. The stretch goal was set higher to accelerate achievement of the interim goal.

4 100% payout target metric: Set based on the 2021 projected MW change in 2024-2026 consistent with meeting the Company's interim decarbonization goal

4 150% payout stretch metric: Set at a level over 60% greater than the target

Below are the net MW change metrics for the 2024-2026 performance period approved by the Committee in February 2024.

|           |     | 2024-2026 Cumulative MW Change(1) |     | Payout % of Target |     |   |
|           |     | < 1,044 MW                        |     |                    |   0 | % |
| Threshold |     | 1,044 MW                          |     |                    |  50 | % |
| Target    |     | 1,843 MW                          |     |                    | 100 | % |
| Maximum   |     | 3,044 MW                          |     |                    | 150 | % |

(1) Goal is expressed in cumulative MW change. Not all MW