Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 497

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 497
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 performance and productivity improvement.

•Set performance goals that are aligned with TVA's strategic priorities.  

•Provide market-based, competitive compensation levels so TVA can attract, retain, and motivate highly competent employees.  Total direct compensation ("TDC"), which includes annual cash and short-term and long-term incentives, generally is set by considering several factors, including reference to the median (50th percentile) of the relevant labor market, as well as factors such as individual performance, experience, and internal equity.  Executives may be positioned above or below the median based on labor market conditions and other factors such as tenure in the role.  See Establishing Competitive Compensation for a discussion of benchmarking practices and competitive compensation decisions at TVA.

•Motivate and reward short-term and long-term performance by providing a mix of short-term and long-term incentives and placing a greater emphasis on long-term incentives for executives in the form of at-risk, performance-based compensation. 

The TVA Board follows the requirements of the TVA Act, which include the approval of a compensation plan and other notable considerations:

•Compensation will be based on an annual survey of benchmark compensation for similar positions in private industry, including engineering and electric energy companies, publicly owned electric companies, and federal, state, and local governments; and

•Compensation will take into account education, experience, level of responsibility, geographic differences, and retention and recruitment needs.

TVA's Executive Compensation Program Aligns Pay with Performance

Nearly two-thirds of the CEO's target TDC is performance-based and at-risk, based on achievement of performance goals that further advance TVA's mission and strategic objectives.  Approximately half of the other NEOs' target TDC opportunity is performance-based and at-risk.  This alignment of compensation with performance also results in compensation being aligned with value delivered to TVA's stakeholders, including LPCs, businesses, and communities, and to the economy of the Tennessee Valley.  

162

SalaryLong-Term Performance AwardLong-Term Retention AwardAnnual Performance Award

Note

(1)  CEO Target TDC Compensation Mix chart reflects the mix for Mr. Moul.

(2)  Other NEO Target TDC Compensation Mix chart does not include retired, retiring, or former NEOs that are discussed in this document.

Performance Goals and Performance Achievement Strategic PrioritiesIncentive Compensation Measures(1)A significant portion of each NEO's compensation is based on company performance and influenced by individual performance achievements.  As a result, a majority of NEO compensation is at