Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 21

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 21
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 evaluate whether any actions are necessary to address those concerns. The board has elected to hold the say-on-pay advisory vote annually until further notice, so the next advisory vote is expected to be in connection with the 2026 annual meeting of stockholders.

#### Board Recommendation
The board of directors unanimously recommends a vote “FOR” the approval of the compensation of our named executive officers, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the Securities and Exchange Commission.

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Proposal 4 – Approval of the 2025 Omnibus Performance Incentive Plan</div>

Overview and Purpose of the 2025 Omnibus Performance Incentive Plan

In order to provide a sufficient pool of equity for us to operate our compensation program, our board of directors has adopted, subject to stockholder approval at the Annual Meeting, the Encompass Health Corporation 2025 Omnibus Performance Incentive Plan, or the 2025 Plan, to provide for issuance of up to twelve (12) million shares of our common stock related to awards beginning in 2025 following approval. The 2025 Plan will replace the existing Encompass Health Corporation 2016 Omnibus Performance Incentive Plan, or 2016 Plan, previously approved by our stockholders on May 5, 2016, as our equity incentive compensation plan. No equity awards currently available for issuance under the 2016 Plan or any other currently effective equity plan will be granted after stockholder approval of the 2025 Plan. In the event the Company grants any equity awards under the 2016 Plan between the record date for the Annual Meeting and the effective date of the 2025 Plan, shares associated with

those awards shall reduce the number of shares available for issuance under the 2025 Plan consistent with the fungibility ratio in the 2025 Plan.

If approved, the 2025 Plan will be effective May 2, 2025. The 2025 Plan will terminate on the tenth anniversary of the Effective Date, unless terminated earlier by the board of directors, but awards granted prior to such date may extend beyond that date. If the 2025 Plan is not approved by our stockholders, no awards will be made under it.

The stockholder approved incentive compensation plan serves a critical role in our compensation program that emphasizes performance-based, “at risk” compensation. Our compensation philosophy calls for a competitive program of compensation for the Company’s senior management that aligns management’s interests with those of our long-term stockholders