Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 27

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 27
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 receive cash subject to the achievement of one or more specified performance goals and such other terms and conditions as may be selected by the Committee.

Dividend Equivalents . Dividend equivalents may be granted to participants, except with respect to a stock option or a SAR, subject to such terms and conditions as may be selected by the Committee. Dividend equivalents entitle participants to receive payments in cash or shares of common stock equal in value to dividends declared and paid with respect to all or a portion of the shares of common stock associated with outstanding awards. Dividend Equivalents shall only be paid or distributed to the extent the underlying award has vested (and only to the extent earned in the case of performance-based awards) and the associated shares of stock have been released.

Other Stock-Based Awards . Other awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to shares of common stock may be granted, including, without limitation, shares of common stock awarded purely as a bonus and not subject to any restrictions or conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable into shares of common stock, and awards valued by reference to book value of shares of common stock or the value of securities of or the performance of specified parents or subsidiaries. The Committee will determine the terms and conditions of any such awards, subject to the minimum vesting requirements discussed above.

Performance Goals. Performance goals may be based on any one or more performance criterion or matter related to the business or operations of the Company. If the Committee determines that a change in the business, operations, corporate structure or capital structure, or the manner in which it conducts its business, or other events, circumstances or accounting entries that are unusual, nonrecurring or unrelated to the performance of the participants or otherwise beyond the control of management render the performance goals unsuitable or any other identifiable event of a nonrecurring or extraordinary nature, such as a pandemic or comparable public health emergency, the Committee may modify or adjust such performance goals or the related minimum acceptable level of achievement, as appropriate and equitable. The calculation of the performance result for any metric may also be subject to adjustment for pre-established items or events if the Committee deems appropriate and equitable.

Award Limits . No individual may be granted options, SARs, performance shares, restricted stock shares, restricted stock unites or shares associated with other stock-based awards in excess of 1,000,000 associated shares in each case during any two consecutive plan years. No individual may be granted during any