Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 1036

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 3
Chunk 1036
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 projects and information regarding trends and competitive practices.  Pay Governance also meets with the Talent and Compensation Committee members without management present.  The 

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committee annually conducts an independence assessment of its advisors including the compensation consultant, consistent with applicable NYSE listing standards and SEC rules.

Competitive Positioning

Market Data for Compensation Comparison

Annually, the Talent and Compensation Committee reviews:

•published and private compensation survey data analyzed and provided by Pay Governance;

•both utility and general industry data to help determine total direct compensation (base salary, annual, and long-term incentive) for non-industry specific roles; and

•data from utility companies to help determine total direct compensation for management roles that are utility-specific.

The Talent and Compensation Committee uses this survey data to develop compensation opportunities that are designed to deliver total direct compensation within a targeted range of approximately the 50th percentile of the surveyed companies in the aggregate.  In general, compensation levels for an executive officer who is new to a position tend to be closer to the 25th percentile of surveyed companies, while seasoned executive officers whose experience and skill set are viewed as critical to retain may be positioned at or above the market median.

Compensation Peer Group

Although the survey data described above is the primary data used in benchmarking compensation, the Talent and Compensation Committee used compensation information from the companies included in the Philadelphia Utility Index to evaluate the overall reasonableness of the Company’s executive compensation programs and to determine Relative TSR performance levels for the 2022–2024 PUP.  The Talent and Compensation Committee identified the Philadelphia Utility Index as the appropriate industry peer group for determining Relative TSR performance levels because the companies included in this index, in the aggregate, are viewed as comparable to the Company in terms of business and scale.

The Talent and Compensation Committee approved the 2024 compensation model and framework based on compensation information from the companies included in the Philadelphia Utility Index as of December 31, 2023, which were (in addition to Entergy):

AES CorporationConsolidated Edison Inc.Edison InternationalPinnacle West Capital CorporationAmeren CorporationConstellation Energy CorporationEversource EnergyPublic Service Enterprise Group, Inc.American Electric Power Co. Inc.Dominion EnergyExelon CorporationSouthern CompanyAmerican Water Works Company, Inc.DTE Energy CompanyFirstEnergy CorporationWEC Energy, Inc.CenterPoint Energy Inc.Duke Energy CorporationNextEra Energy, Inc.Xcel Energy, Inc.

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2024 Compensation Structure and Incentive Metrics

In 2024, the executive compensation programs consisted of