Company: ATO
Filing Date: 2025-12-09
Form Type: PRE 14A
Source: 0000731802-25-000061
Chunk: 34

Company: ATMOS ENERGY CORP
Filing Date: 2025-12-09
Form: PRE 14A
Chunk 34
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 under the terms of the Incentive Plan, participants may elect prior to the beginning of each fiscal year to convert all or a portion of their final earned awards to time-based RSUs with three-year cliff vesting, with a premium equal to 20% of the amount converted, such that the value of time-based RSUs received will equal 120% of the value of the final earned award, and with such units being awarded under our LTIP. Each named executive officer elected to receive 100% cash for his or her fiscal 2025 Incentive Plan award.

#### 40Atmos Energy
Compensation Discussion & Analysis

#### Long-Term Incentive Compensation
The HR Committee grants awards under our LTIP each fiscal year that are structured with a portion of the targeted long-term value in the form of three-year performance-based RSUs (measured by cumulative EPS over the three-fiscal year period) and with the remaining portion in the form of time-based RSUs with three-year cliff vesting. The HR Committee bases the actual number and value of awards granted to each named executive officer primarily on the competitive compensation benchmarking of grants made by the companies in our proxy peer group, as discussed below.

#### TIME-BASED RSUs
• Alignment with shareholders

• Facilitates share ownership

• Strong retention vehicle

#### PERFORMANCE-BASED RSUs
• Tied to achievement of long-term operational objectives

• Alignment with shareholders

• Facilitates share ownership

• Strong retention vehicle

2025 Performance-Based RSU Grants (2025-2027 awards)

At its meeting in November 2024, the HR Committee also established the threshold, target, and maximum performance levels of cumulative EPS upon which performance-based RSUs awards would be based for the fiscal 2025-2027 performance period, along with the corresponding percentages of target awards. The three-fiscal year cumulative EPS target performance level was based on the same factors utilized by the HR Committee for our Incentive Plan described above. The HR Committee then awarded grants to the named executive officers at its meeting in February 2025, which were later ratified by the Board, of performance-based RSUs for the fiscal 2025-2027 performance period. The following table shows the three-year performance criteria for such period (which represent increased performance level requirements over the fiscal 2024-2026 grant).

| Performance Level |     |        | Cumulative      
 EPS Performance |     | Percentage (%) of   
 Target Award Earned |
| Below