Company: PCG-PB
Filing Date: 2025-04-10
Form Type: DEF 14A
Source: 0001004980-25-000073
Chunk: 54

Company: PG&E Corp
Filing Date: 2025-04-10
Form: DEF 14A
Chunk 54
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 was further updated to be measured on a weather-normalized basis from 2024. This change enhances the alignment with our focus on wildfire risk reduction, by potentially reducing the outcome of that entire element of the STIP to zero in the event of certain ignitions.

• The quality pass rate metric weighting was reduced from 15% to 10%, enabling an increase in the operating cash flow metric weighting from 5% to 10%. This change resulted in the aggregate weighting of financial metrics in the STIP increasing to 30%.

• The number of customer-related metrics was reduced from three to one, with the aggregate weighting held constant at 10%. The two emergency response metrics were removed, in favor of increasing the focus on the customers experiencing multiple interruptions (CEMI-5 + CEMI-10) index metric.

In determining and approving the appropriate performance metrics in each of these three performance areas, the People and Compensation Committee considered factors including:

• The alignment with our fundamental belief that safety is paramount, complemented by a focus on customer welfare across all aspects of our business.

• Balancing metrics to ensure they collectively drive the right behaviors. For example, an overly narrow focus on reporting might result in coworkers failing to seek appropriate medical treatment for work-related injuries in order to keep reported injury metrics low.

PG&E Corporation | Pacific Gas and Electric Company 2025 Joint Proxy Statement 62

• The proportion of metrics that are outcome-based, as opposed to metrics that are based on operational activity or effort. As described in the earlier “Incentive Plan Goal Setting” section on page 58, in approving performance goals, the People and Compensation Committee references a range of factors including historic performance inclusive of multi-year trends; projected performance driven by workplans, regulatory commitments and anticipated timing of milestone achievements; the target-setting methodology, with recommended ranges around target to establish threshold and maximum goals; and the degree of change the proposed goals represent versus the prior year.

• Guidance from the CPUC reinforcing the priority placed on outcome-based metrics for alignment with reducing the companies’ highest-priority risks, such as the risk of catastrophic events like wildfires, dam failures, or gas explosions.

• The companies’ ability to establish robust threshold, target, and maximum achievement milestones.

• Alignment with California-regulated utility peers and a need to comply with California regulatory agency requirements.

Each metric has a clear definition with a predetermined and pre-approved calculation methodology.

| Metric                                                                                         |     | Definition(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Weather-normalized CPUC