Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 72

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 72
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 of the fair market value of the same number of shares of the common stock subject to the award immediately prior to the change in control over the aggregate exercise or base price (if any) of the award.

#### Tax Implications of Executive Compensation
Section 162(m) of the Internal Revenue Code of 1986, as amended (“Section 162(m)”), generally limits to $1 million per year income tax deductions available to publicly held corporations for compensation paid in years beginning after December 31, 2017 to the corporation’s CEO, CFO, certain other NEOs, and certain former NEOs (each a “Covered Executive”). As a result, most compensation in excess of $1 million paid to our Covered Executives is not deductible.

The Compensation Committee has considered the effect of Section 162(m) on the Company’s executive compensation program. The Compensation Committee exercises discretion in setting base salaries, structuring incentive compensation awards and in determining payments in relation to levels of achievement of performance goals. The Compensation Committee believes that the total compensation program for Covered Executives should be managed in accordance with the objectives outlined in the Company’s compensation philosophy and in the best overall interests of the Company’s stockholders. Accordingly, compensation paid by the Company may not be deductible because such compensation exceeds the limitations for deductibility under Section 162(m).

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#### Summary Compensation Table
The table below shows the compensation of our named executive officers for services in all capacities in 2024, 2023, and 2022. For a discussion of the various elements of compensation and the related compensation decisions and policies, including the amount of salary and bonus in proportion to total compensation and the material terms of awards reported below, see “Compensation Discussion and Analysis” beginning on page 40. The Company had no employment agreements or other compensation arrangements in effect with its NEOs in 2024.

| Name and Principal                                      
 Position                                                |     |      |     | Year |     |           |     | Salary 
 ($)    |           |     |   |     | Bonus 
 ($)   |   |     |           |     | Stock Awards($)(1) |           |     |           |     | Option Awards($)(2) |           |     |           |     | Non-Equity Incentive Plan Compensation($)(3) |           |     |        |     | All OtherCompensation($)(4) |         |     |           |     | Total 
 ($)   |           |