Company: PAGP
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001104659-25-033938
Chunk: 31

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 31
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 owner and for the last several years has requested to not participate in the long-term incentive program, which results in an at-risk compensation percentage for Mr. Pefanis of 67%. At-risk compensation is typically tied to the achievement of one or more performance metrics that measure value creation over both the near and longer term, as well as service period requirements. The primary short-term financial metrics are annual earnings and cash flow levels as represented by Adjusted EBITDA 1 attributable to PAA and distributable cash flow (“DCF”) per common unit and common unit equivalent (“CUE”). The primary long-term performance measures included in our equity incentive grants are DCF per CUE over a 3-year period (with a leverage modifier) and relative TSR over a 3-year period. We believe our short- and long-term performance metrics are consistent with our overall financial strategy of maintaining financial flexibility and generating attractive shareholder returns. We believe our pay-for-performance approach aligns the interests of our executive officers with the interests of our equity holders. We also believe that our pay-for-performance approach helps us achieve the overall objectives of our executive compensation program, which are to: • attract and retain individuals with the background and skills necessary to successfully execute our business model in a demanding environment; 1 Earnings before interest, taxes, depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to canceled projects and impairments, of unconsolidated entities), gains and losses on asset sales and asset impairments, goodwill impairment losses and gains or losses on and impairments of investments in unconsolidated entities, adjusted for certain selected items impacting comparability. 29

TABLE OF CONTENTS

• pay for performance by tying a majority of NEO pay (57% for the CEO and 54% on average for the other NEOs) to achievement of specific near-term and long-term goals that drive long-term growth in unitholder value; and • directly align our NEOs with our unitholders through the use of equity incentives and encouragement of long-term unit ownership. Compensation Elements and Objectives We use three primary elements of compensation in combination with market competitive benefits to achieve our executive compensation program objectives — (i) base salary, (ii) annual cash incentive awards and (iii) long-term equity incentive awards. Our mix of compensation elements is designed to reinforce near-term and long-term business and strategic objectives, recognize and reward performance, motivate long-term value creation, attract and retain talent and align the interests of our