Company: ELV
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001156039-25-000046
Chunk: 48

Company: Elevance Health, Inc.
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 48
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0 Percentage Point Decline    compared to 2023      |
| Consumer Effort           |     | 2.0 Percentage Point Improvement compared to 2023  |     | Missed Target                                         
 1.9 Percentage Point Improvement compared to 2023     |

(1) The AIP allows for adjustments to our results as reported to our shareholders for items the Committee believes distort views of management performance and items that, if not adjusted, might misalign management incentives. The Committee reviews each potential adjustment to determine whether to include or exclude. These adjustments include, but are not limited to, the cumulative effect of unplanned changes in accounting principles, extraordinary items and unusual or non-recurring gains or losses, changes in tax laws or rates, and results of, and costs of, significant acquisitions and dispositions. In determining the payout under the AIP for 2024, the Committee approved a $17.3 million decrease to our reported Adjusted Net Income related to 2024 acquisitions and an associated $1,855 million decrease to our reported Operating Revenue to reflect the exclusion of 2024 acquisition revenue.

(2) The Improving the Health of Humanity performance measure contains three quantitative metrics. The metrics and their results inform the Committee's qualitative discussion to determine the overall results for this performance measure. We exceeded target in two of the three metrics—significantly exceeding target in one of the metrics—leading the Committee to determine that overall we exceeded our goal to improve the health of our associates, members and communities and assessed our performance of this measure as above target.

#### Relative Peer Modifier
In 2024, we also measured our Adjusted Net Income growth and Total Revenue growth as compared to our Peer Modifier Group. Based on this relative performance, the Committee had the ability to adjust overall AIP funding by multiplying the calculated funding amount by 80% to 120%. The calculation of our relative Adjusted Net Income growth and Total Revenue growth is based on actual results for the first three quarters and analysts’ consensus for the fourth quarter of the year, adjusted for the impact of significant mergers and acquisitions.

We ended the year with a rank of 3rd out of the six companies in the Peer Modifier Group for Adjusted Net Income growth using the reported adjusted baseline of Elevance Health and our peers and a rank of 6th out of the same six companies for Total Revenue growth. Based on our relative performance on both measures, the Committee set the modifier at 92.5%.

#### Individual Performance Modifier
As discussed earlier,