Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 334

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 334
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 EAIP Payout was prorated based on time in position, April 3, 2025 through September 30, 2025. Target for a full performance period would be $465,500.

(11)  Mr. Fisher's Target EAIP Payout was prorated based on time in position, July 28, 2025 through September 30, 2025. Target for a full performance period would be $300,000.

(12)  Mr. Fountain's Target EAIP Payout was prorated based on separation from service, October 1, 2024 through June 1, 2025. Target for a full performance period would be $481,333.

Long-Term Incentive Plan

TVA executives, including the NEOs, participate in the company's LTIP.  These individuals make decisions that significantly influence the development and execution of TVA's long-term strategic objectives.  As such, awards under TVA's LTIP are designed to reward executives for sustainable success.  Since long-term success is supported by a commitment to continued employment, the NEOs are incentivized to remain with the company through the vesting of the LTP awards and LTR awards, as discussed below:

•Enterprise-wide performance criteria are directly aligned with TVA's mission

•"Cumulative" performance approach measures performance achieved over a three-year period with a new three-year performance cycle beginning each year

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•Potential LTP payments range from 0 percent to 200 percent of target incentive opportunity to enable awards that are commensurate with performance achievements (0 percent to 150 percent for the retired CEO)

•Award opportunities are established for each performance cycle below or near median levels of competitiveness with TVA's peer group

•LTP awards vest upon the completion of the three-year performance period, contingent upon continued employment through vesting date and subject to achievement of performance goals

•LTR awards vest in one-third increments over three years, contingent upon continued employment through each vesting date

LTP Grants and Vested Awards.  TVA's executive compensation program provides for an annual LTP grant, which yields a vested award following a three-year performance period. 

The performance measures and threshold, target, and stretch goals for each measure are determined annually by the TVA Board.  In setting the goal for each measure, the TVA Board considers budgeted amounts in the company's approved business plans, actual performance in recent years, and level of attainment.  The