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

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 25
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 its employees, officers, and directors to those of its stockholders, and by providing participants with incentives for outstanding performance.

Eligibility. The 2025 Plan permits the grant of equity and cash incentive awards to employees, officers, and directors of the Company and its subsidiaries as selected by the Committee. As of February 20, 2025, approximately 349 people participated in the 2016 Plan.

Aggregate Shares. Subject to adjustment as provided in the 2025 Plan, the aggregate number of shares of common stock reserved and available for issuance pursuant to awards granted under the 2025 Plan is twelve (12) million. Each share of stock subject to an award, other than a stock option or SAR, shall reduce the number of shares of stock available for awards by 2.65 shares. The number of shares of stock available for awards shall be reduced by one share for each stock option or SAR award. Except in the case of stock options and SARs, the 2025 Plan allows the Company to add back to the number of shares available for issuance the same number of shares that were previously reserved for issuance in connection with a related award (including awards under the 2016 Plan outstanding as of effective date of the 2025 Plan) but were forfeited, canceled, or otherwise never issued to the recipient. The closing price of our common stock on February 28, 2025 was $100.14. If the 2025 Plan is approved and effective, we will not grant or issue new equity awards under the 2016 Plan.

Minimum Vesting Requirements. Except with respect to awards accounting for not greater than 5% of the aggregate number of shares of common stock reserved and available for awards under the 2025 Plan, awards granted under the 2025 Plan shall be subject to a minimum vesting period of at least one year for all shares of stock subject to such awards.

Oversight and Administration. The Committee will administer the 2025 Plan. The Committee has the authority to designate participants; determine the type or types of awards to be granted to each participant and the number, terms and conditions thereof; delegate authority to management with respect to non-executive awards (in which case any authorized actions taken by the delegate(s) shall be treated as actions of the Committee); and make all other decisions and determinations that may be required under the 2025 Plan. The board of directors may at any time choose to administer the 2025 Plan (for example, awards to the chief executive