Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 653

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 653
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 stock-based awards is 24,400,000 all of which are available for incentive stock option grants.  The 2019 Plan applies to awards granted on or after May 3, 2019 and awards expire ten years from the date of grant.  As of December 31, 2024, there were 13,966,025 authorized shares remaining for stock-based awards.Stock OptionsStock options are granted at exercise prices that equal the closing market price of Entergy Corporation common stock on the date of grant.  Generally, stock options granted will become exercisable in equal amounts on each of the first three anniversaries of the date of grant.  Unless they are forfeited previously under the terms of the grant, options expire 10 years after the date of the grant if they are not exercised.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The following table includes financial information for stock options for each of the years presented: 202420232022 (In Millions)Compensation expense included in Entergy’s consolidated net income$4.0$4.1$4.2Tax benefit recognized in Entergy’s consolidated net income$1.0$1.1$1.1Compensation cost capitalized as part of fixed assets and materials and supplies$1.9$1.9$1.7Entergy determines the fair value of the stock option grants by considering factors such as lack of marketability, stock retention requirements, and regulatory restrictions on exercisability in accordance with accounting standards.  The stock option weighted-average assumptions used in determining the fair values are as follows: 202420232022Stock price volatility25.24%24.89%24.27%Expected term in years6.886.896.92Risk-free interest rate4.03%3.51%1.77%Dividend yield4.30%4.00%4.00%Dividend payment per share$2.30$2.17$2.05Stock price volatility is calculated based upon the daily public stock price volatility of Entergy Corporation common stock over a period equal to the expected term of the award.  The expected term of the options is based upon historical option exercises and the weighted-average life of options when exercised and the estimated weighted-average life of all vested but unexercised options.  In 2008, Entergy implemented stock ownership guidelines for its senior executive officers.  These guidelines require an executive officer to