Company: EHC
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000785161-25-000013
Chunk: 57

Company: Encompass Health Corp
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 57
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 the aggregate target TDC for the NEOs was within the competitive range. It is important to note the Committee, with input from its advisor, recognizes the benchmark data changes from year to year, so the comparison against those benchmarks places emphasis on sustained compensation trends to avoid short-term anomalies. In general, the Committee views compensation 15% above or below the 50th percentile to be within a competitive range given year to year variability in the data and also considers our size relative to the companies in the healthcare peer group and implications for compensation (Encompass Health’s revenues were at the 78th percentile at the time of the Committee’s review). Each NEO’s 2024 TDC fell between the 50th and the 75th percentiles of the peer group.

The Committee has considered the appropriate competitive target range to attract and retain the kind of executive talent necessary to successfully achieve our strategic objectives. The Committee’s objective is to establish target performance goals that will result in strong performance by the Company. Executives may achieve higher actual compensation for exceptional performance relative to these target performance goals and below-median levels of compensation for performance that is not as strong as expected.

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### ELEMENTS OF EXECUTIVE COMPENSATION
| Elements of Annual Total Rewards at a Glance |     |                                                                                                                                |     |                                                                                                                                                                                                                 |
| Total Reward                                 
 Component                                    |     | Purpose                                                                                                                        |     | 2024 Actions                                                                                                                                                                                                    |
| Base Salary                                  |     | Provide our executives with a competitive level of regular income.                                                             |     | Increased base salaries of Mr. Darby and Mr. Price to $625,000 and $345,000, respectively.                                                                                                                      |
| Annual Incentives                            |     | Intended to drive Company performance while focusing on annual objectives.                                                     |     | Modified the Quality/Strategic Objectives Scorecard: increased First Year RN Turnover target to 70% of hospitals meeting or exceeding their goal and removed Discharge to Skilled Nursing Facility as a metric. |
| Long-Term Incentives                         |     | Intended to focus executive attention on longer-term strength of the business and align their interests with our stockholders. |     | Lengthened the PSU performance period to 3 years and increased Mr. Tarr’s target LTIP to $5,425,000.                                                                                                            |
| Health and Welfare Benefits                  |     | Provide our executives with programs that promote health and financial security.                                               |     | No changes.