Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 56

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 56
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 relies on Pay Governance for independent executive compensation advice and support. Pay Governance is retained by, and works directly for, the Committee and attends meetings of the Committee, as requested by the Committee chair. Pay Governance has no decision making authority regarding our executive compensation. Services provided include, among others:                                                                                                                                                                                           |
|                             |     | •updates and advice to the Committee on the regulatory environment as it relates to executive compensation matters;                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                             |     | •advice on trends and best practices in executive compensation and executive compensation plan design;                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                             |     | •market data, analysis, evaluation, and advice in support of the Committee’s role; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                             |     | •commentary on our executive compensation decisions and disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                             |     | Management has separately engaged Mercer (US) Inc. The scope of that engagement includes providing data and analysis on competitive executive and non-executive compensation practices. Mercer data on executive compensation practices was provided to the Committee, subject to review by, and input from, Pay Governance. Mercer also provides a diagnostic tool and support to our assessment of risk related to our compensation practices. Mercer does not directly advise the Committee in determining or recommending the amount or form of executive compensation. |

#### Assessment of Competitive Compensation Practices
The Committee does not employ a strict formula in determining executive compensation. A number of factors are considered in determining executive base salaries, annual incentive opportunities, and long-term incentive awards, including:

| ü |     | the executive’s responsibilities |     | ü |     | internal equity within senior management |
| ü |     | the executive’s experience       |     | ü |     | succession plans and business continuity |
| ü |     | the executive’s performance      |     | ü |     | competitive market data                  |

To assess our NEOs’ target TDC, the Committee reviews competitive data from two sources:

#### •

#### compensation survey data noted below, and
• healthcare peer group data - Pay Governance, at the direction of the Committee, assembles data for a targeted group of healthcare industry peers.

The survey data provides a significant sample size, includes information for management positions below senior executives, and includes companies in healthcare and other industries from which we might recruit for executive positions.

| Survey Sources                    |     |                                      |
| Mercer Benchmark Database         |     | WTW Executive Compensation Data Bank |
| Mercer Integrated Health Networks |     | Radford Global Compensation Database |

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