Company: HUM
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-048976
Chunk: 53

Company: HUMANA INC
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 53
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 two or more of CenterWell’s health services offerings (pharmacy, primary care, and home).   •   Key element of our enterprise strategy to more fully connect with our members and drive improved health outcomes through integrated care, with alignment to our ESG measure categories - Access to Healthcare, Data Privacy and Protection, and Product Quality and Safety.                                                                                                                                                                                                                                                                             |
| Strategic Measures                              |     | 15% Weighting |     | •   Set of strategic initiatives that, if achieved, will improve our performance as a consumer centric organization that strives for continued member experience improvement and clinical innovation.   •   Continued focus on improving our operating leverage by driving administrative costs reduction, capacity creation, increased efficiency, automation, and digital transformation, with alignment to our ESG measure categories - Access to Healthcare, Data Privacy and Protection, and Product Quality and Safety.   •   Refer to “AIP Strategic Measures” below for additional details.                                                                                                                     |

As noted above, in determining the financial metric for the 2024 AIP, the Committee considered the dynamic environment in which the Company is currently operating, as reflected by significant change in expectations to the Company’s earnings trajectory resulting from the higher than anticipated Medicare Advantage (MA) claims costs trends experienced in late 2023 that persisted throughout 2024, and the uncertainty to 2024 performance due to these trends. Following this review, the Committee determined that the Company’s Adjusted EPS target of $16.00 would also (i) be the threshold level of performance for the Adjusted EPS metric and (ii) represent a funding gate for our management team, such that no AIP would be paid unless the Company achieves this target level of performance. In addition, the Committee determined that 2024 Adjusted EPS of $20.00 (representing 25% outperformance from the target level) would be required to achieve the maximum AIP opportunity. Further, the terms of the plan provide that the performance measures determined by the Committee shall automatically adjust to reflect the impact of certain non-recurringevents, including the impacts of merger, acquisition and disposition activity, changes in accounting standards, litigation or regulatory investigations outside of the ordinary course of business, restructuring activity outside of the ordinary course of business, business exit or disposal activities, and any extraordinary, natural disaster, unusual or infrequent event. However, the Committee retains the ability to exercise negative (but not positive) judgment with respect to