Company: SOJE
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0000092122-25-000036
Chunk: 52

Company: SOUTHERN CO
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 52
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 GHG reduction metric measures the progress on the Company’s fleet transition through quantitative and qualitative metrics                                                                                                                                                                                                                                          |

Credit Quality Threshold Goal: The financial goal is also subject to a credit quality threshold requirement that encourages the maintenance of adequate credit ratings to provide an attractive return to investors. If the primary credit rating falls below investment grade at the end of the three-year performance period, the payout for the ROE goal will be reduced to zero.

#### 54Southern Company2025 Proxy Statement

### Compensation Discussion and Analysis
For each of the financial performance measures, a threshold, target and maximum goal was set at the beginning of 2024.

|           |     | Relative TSR              
 Performance               |     |       | Consolidated    
 ROE Performance | Payout |     |   |
| Maximum   |     | 90th percentile or higher |     | 13.75 | %               |        | 200 | % |
| Target    |     | 50th percentile           |     | 11.50 | %               |        | 100 | % |
| Threshold |     | 10th percentile           |     | 10.00 | %               |        |   0 | % |

2024-2026 GHG Reduction Metric for Certain Executives

To support our fleet transition, the Committee continued to include a GHG metric in the 2024 LTI award of the CEO, the CFO and the COO. Ten percent of the 2024 LTI awards for these executives is aligned with our GHG reduction goals. This goal has both quantitative and qualitative components.

Quantitative Component : The Committee chose to express the quantitative measure in terms of cumulative change in MWs over the three-year performance period.

4 Expressing the measure as the cumulative change in MWs reflects the transition in our overall generation fleet. Had the Committee chosen to express the measure in terms of the absolute or relative decreases in emissions, results could be impacted by factors outside the Company’s control such as annual changes to weather patterns, the strength or weakness of the economy and fuel prices and availability, potentially resulting in an unwarranted increase or decrease in incentive compensation.

4 The cumulative MW metric includes MW changes from adding zero-carbon and renewable energy MWs, including energy storage, as well as energy efficiency and load flexibility/demand response MWs. The metric also includes MW changes due to placing coal or gas steam generation units in retirement status or inactive reserve (which means no longer available for routine generation operations and dispatch, but available for