Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 324

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 324
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 this talent with large IOUs, and thus TVA needs to offer compensation programs that are competitive with those peers.

Use of Market Data and Benchmarking.  TVA generally determines target TDC for executives considering the median of the relevant labor market as well as other factors such as individual performance, experience, and internal equity.  

After compiling market compensation for the positions at the beginning of 2025, the Committee, with assistance from Meridian, used the information to:

•Assess target compensation level and incentive opportunity competitiveness; and

•Determine appropriate target compensation levels and incentive opportunities to maintain the desired degree of market competitiveness.

The relevant labor market for the NEOs consists of both IOUs and government/non-profit entities in the energy services industry that have similar revenue and scope as TVA.  The process for gathering and analyzing information about executive compensation in the relevant labor market is as follows:

•Each year, the Committee's compensation consultant recommends a relevant labor market peer group for approval by the Committee.  For 2025 compensation opportunities, TVA's market data was determined based on a review of executive compensation survey data and/or public proxy statement data for members of this peer group.  

•For the survey-based analysis, TVA referenced a sample from the 2024 Willis Towers Watson ("WTW") Energy Services Executive Compensation Database consisting of (1) 28 IOUs with revenue greater than or equal to $3.0 billion plus (2) 11 additional government/non-profit entities with revenue greater than or equal to $1.0 billion.    

•The survey analysis was supplemented with public compensation data from a separate proxy peer group of IOUs.  The Committee reviews the proxy peers annually to ensure continued appropriateness, including comparable business content and model, company size measured primarily by revenue and assets, and other refining factors such as generating capacity, number of employees, and number of customers.  

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Compensation Peer Companies.  The following chart outlines the companies that constituted the survey sample and proxy peer group used to benchmark NEO compensation for 2025.

List of Compensation Peer CompaniesInvestor owned utilities with revenue greater than or equal to $3.0 billion — proxy peer group and participants in 2024 Willis Towers Watson Energy Services SurveyGovernment/non-profit entities with revenue greater than or equal to $1.0 billion which participated in 2024 Willis Towers Watson Energy Services SurveyAES Corporation Eversource Energy Colorado Springs Utilities Alliant Energy Corporation Exelon Corporation CPS Energy Ameren Corporation FirstEnergy Corp. Great River EnergyAmerican