Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 594

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 11
Chunk 594
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 is supported by a commitment to continued employment, the NEOs are incentivized to remain with the company through the vesting of the LTP awards and LTR awards, as discussed below:

•Enterprise-wide performance criteria are directly aligned with TVA's mission

•"Cumulative" performance approach measures performance achieved over a three-year period with a new three-year performance cycle beginning each year

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•Potential LTP payments range from 0 percent to 200 percent of target incentive opportunity to enable awards that are commensurate with performance achievements (0 percent to 150 percent for the retired CEO)

•Award opportunities are established for each performance cycle below or near median levels of competitiveness with TVA's peer group

•LTP awards vest upon the completion of the three-year performance period, contingent upon continued employment through vesting date and subject to achievement of performance goals

•LTR awards vest in one-third increments over three years, contingent upon continued employment through each vesting date

LTP Grants and Vested Awards.  TVA's executive compensation program provides for an annual LTP grant, which yields a vested award following a three-year performance period. 

The performance measures and threshold, target, and stretch goals for each measure are determined annually by the TVA Board.  In setting the goal for each measure, the TVA Board considers budgeted amounts in the company's approved business plans, actual performance in recent years, and level of attainment.  The TVA Board also considers TVA's strategic business plan priorities and strategic benchmarking goals, customer and stakeholder feedback, environmental and regulatory concerns and goals, and the competitive environment.  

Following the TVA Board's approval of performance achievement at the end of each three-year performance period, awards are paid out in cash early in the subsequent fiscal year, or upon death, disability, or retirement, as described in TVA's LTIP.  For the 2023–2025 LTP award cycle, target performance provides for a 100 percent payout opportunity, performance below threshold provides for no payout, performance at threshold provides for a 50 percent payout opportunity, and performance at stretch provides for a 200 percent payout opportunity (for all eligible participants, except the retired CEO).  LTP Incentive awards for the retired CEO are calculated in the same manner except that the scorecard achievement ranges from 0 percent to 150 percent instead of 0 percent to 200 percent.  

Linear interpolation is used for results between threshold and stretch goals.  The TVA Board may apply