Company: HUM
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-048976
Chunk: 47

Company: HUMANA INC
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 47
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 a value equal to approximately $3,000,000 on the date of grant and (ii) stock options with a grant date fair value equal to approximately $3,000,000. This initial award was designed to establish an important and immediate long-term equity position as our incoming CEO. The Committee determined that the equal split between time-based RSUs and stock options reflected an appropriate balance between at-riskequity compensation opportunity and immediate stock price exposure. Further details of Mr. Rechtin’s annual compensation structure and equity grant is discussed in the section titled “Overview of Compensation Elements” in this CD&A. February 2024 Retention Awards in Connection with Chief Executive Officer Transition As part of our CEO transition process, our Board and the Committee believed that it was important and in the best interests of stockholders to retain key leaders within the Company’s management team during this critical time. To assist in these retention efforts, in February 2024 the Organization and Compensation Committee approved the grant of one-timeequity awards to certain members of the management team. Three of our named executive officers received an award: Ms. Diamond received an award of $4,000,000, Dr. Shetty received an award of $2,000,000, and Mr. Renaudin received an award of $2,000,000. Each award was comprised of time-based restricted shares that cliff vest three-years following the grant date of the award. To best position the Company for success in the long-term, the Board determined it was critical to bolster stability among the broader management team during such an important transition year. These awards were a pivotal element of a thoughtful multi-year succession processes overseen by the Board which included thorough onboarding and direct partnerships between new executives and their predecessors. The Committee and Board view the grant of retention and other one-timeawards to our NEOs as a non-routinematter only to be done in certain circumstances, including to attract, retain and incentivize top talent in the context of a broader leadership transition. January 2025 Chief Financial Officer Transition In late 2024, following an extensive search process, Humana’s Board named Celeste Mellet our Chief Financial Officer. Ms. Mellet succeeded Susan Diamond as our Chief Financial Officer in January 2025. Consistent with our multi-year succession planning process for the CEO position, Ms. Diamond will serve in an advisory role through the end of 2025 to ensure a smooth transition for Ms. Mellet. For additional information regarding Ms. Diamond’s Transition Agreement