Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 325

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 325
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 Electric Power Company, Inc. NiSource, Inc. JEA CenterPoint Energy, Inc. NRG Energy, Inc. Lower Colorado River AuthorityCMS Energy Corporation Pacific Gas and Electric Company Nebraska Public Power DistrictConsolidated Edison, Inc. Pinnacle West Capital Corporation New York Power AuthorityConstellation Energy Corporation PPL Corporation Oak Ridge National Laboratory Dominion Energy, Inc. Public Service Enterprise Group, Inc. Omaha Public Power DTE Energy Company Sempra Energy Salt River Project Duke Energy Corporation Southern Company Tri-State Generation and Transmission Edison InternationalVistra Corp. Entergy Corporation WEC Energy Group, Inc. Evergy, Inc. Xcel Energy, Inc. 

Total Direct Compensation

In setting executive compensation each year, the Committee focuses on TDC, which includes those compensation elements that motivate future performance or reward past performance.  TDC is comprised of annual salary, an annual incentive award under TVA’s EAIP, and an LTI award provided under TVA’s LTIP, which is delivered in two components, an LTP award and a Long-Term Retention (“LTR”) award.

Each year, two key compensation decisions are made with respect to NEO compensation: (1) the amount of the TDC opportunity to grant, which is forward-looking, incentivizes the NEO to perform, and is determined toward the beginning of the fiscal year, and (2) the amount of TDC earned, which rewards the NEO for demonstrated performance (other than salary or LTR award) and is determined at the end of the fiscal year.  The TDC components and weightings for TDC opportunities granted to the NEOs in 2025 are summarized below and described in the sections that follow.  Since TVA is a governmental entity that issues no equity, all direct compensation is denominated and paid out in cash.

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Compensation Component(1)of Target TDCObjectiveKey FeaturesAnnual SalaryProvide fixed base  compensation to  encourage hiring and retention of qualified executives•Annual salary is the essential fixed element of pay that all employees expect.•Salary is typically determined with reference to market data (most often approximating 50th percentile) and experience in role. Executive Annual Incentive PlanIncentivize performance by providing at-risk compensation tied to attainment of pre-established performance goals for the fiscal year•Target annual incentives are determined largely based on market data and experience in role.•Annual incentive payouts are based on the results vs. pre-established enterprise goals as determined from year to year by the TVA Board.  •The TVA Board has