Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 1162

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 1162
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, as they are thoughtfully designed to:

•Motivate and reward the achievement of results that are deemed by the Talent and Compensation Committee to be consistent with the overall goals and strategic direction that the Board has approved for the Company.

•Attract and retain a highly experienced, diverse, and successful management team.

•Create sustainable value for the benefit of all of Entergy Corporation’s stakeholders, including its customers, employees, communities, and owners.

•Align the interests of Entergy Corporation’s executives with the Company’s long-term business strategy by tying equity-based awards to performance metrics designed to focus Entergy Corporation’s executives on driving continuous improvement in operational and financial results to the benefit of all stakeholders, including Entergy Corporation’s customers, employees, communities, and owners.

Compensation Best Practices

The Talent and Compensation Committee reviews Entergy’s executive compensation programs on an ongoing basis to evaluate whether they support the Company’s executive compensation principles and philosophy and are aligned with the interests of our stakeholders.  The Company’s executive compensation practices include the following, each of which the Talent and Compensation Committee believes reinforces our executive compensation principles and philosophy:

PracticeDescriptionPay for PerformanceThe executive compensation programs are designed to yield pay outcomes that the Company believes are highly correlated with performance and support long-term value creation.Annual and Long-Term Incentive Measures Drive Desired Employee BehaviorsPerformance measures for the annual and long-term incentive programs are designed to incentivize employee behaviors that serve the Company’s key stakeholders.Double Trigger Change-in-ControlThe Company requires both a change-in-control and an involuntary termination without cause or voluntary termination with good reason for cash severance payments and immediate vesting of unvested equity awards.Long-Term Incentives Paid in StockAll long-term incentive awards are settled in shares of Entergy common stock.Stock Ownership GuidelinesThe Company requires executive officers to own a significant amount of Entergy Corporation common stock.Cap on Incentive Awards for OCE MembersThe maximum payout for members of the Office of the Chief Executive (“OCE”), which members include all of the NEOs, is capped at 200% of the target opportunity for the annual incentive and long-term Performance Unit Program (“PUP”) awards.Rigorous GoalsThe Company sets financial goals based on externally disclosed annual and multi-year guidance and outlooks and non-financial goals based on a rigorous internal review.

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PracticeDescriptionClawback Policies Beyond Dodd-Frank RequirementsEntergy’s officers (as defined under Section 16), including the NEOs, are subject to a recoupment policy that complies