Stock-Based Compensation

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Text Block]

STOCK-BASED COMPENSATION (Entergy Corporation)

Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K.  Awards under Entergy’s plans generally vest over three years.

Stock Options

In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of options on 366,136 shares of its common stock under the 2019 Omnibus Incentive Plan with a fair value of $17.43 per option.  As of June 30, 2025, there were options on 3,132,728 shares of common stock outstanding with a weighted-average exercise price of $56.71.  The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of June 30, 2025.  The aggregate intrinsic value of the stock options outstanding as of June 30, 2025 was $78.6 million.

The following table includes financial information for stock options for the three months ended June 30, 2025 and 2024:

	2025	2024
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$1.0	$1.1
Tax benefit recognized in Entergy’s consolidated net income	$0.2	$0.3
Compensation cost capitalized as part of fixed assets and materials and supplies	$0.5	$0.5

The following table includes financial information for stock options for the six months ended June 30, 2025 and 2024:

	2025	2024
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$2.1	$2.2
Tax benefit recognized in Entergy’s consolidated net income	$0.5	$0.6
Compensation cost capitalized as part of fixed assets and materials and supplies	$1.0	$1.0

Other Equity Awards

In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of 510,009 restricted stock awards and 187,036 performance units under the 2019 Omnibus Incentive Plan.  The restricted stock awards were made effective on February 6, 2025 and were valued at $82.79 per share, which was the closing price of Entergy Corporation’s common stock on the grant date.  Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date.

The performance units represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. To emphasize the importance of environmental stewardship, specifically of carbon-free generation and resilience, an environmental achievement measure was selected as one of the performance measures for the 2025-2027 performance period. For the 2025-2027 performance period, performance will be measured based eighty percent on relative total shareholder return and twenty percent on the environmental achievement measure.  The performance units were granted on February 6, 2025 and eighty percent

were valued at $115.13 per share based on various factors, primarily market conditions; and twenty percent were valued at $82.79 per share, the closing price of Entergy Corporation’s common stock on the grant date.  Performance units have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period, and compensation cost for the portion of the award based on the selected environmental achievement measure will be adjusted based on the number of units that ultimately vest. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program.

The following table includes financial information for other outstanding equity awards for the three months ended June 30, 2025 and 2024:

	2025	2024
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$9.4	$9.8
Tax benefit recognized in Entergy’s consolidated net income	$2.3	$2.5
Compensation cost capitalized as part of fixed assets and materials and supplies	$4.7	$4.6

The following table includes financial information for other equity awards for the six months ended June 30, 2025 and 2024:

	2025	2024
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$19.4	$19.7
Tax benefit recognized in Entergy’s consolidated net income	$4.8	$5.0
Compensation cost capitalized as part of fixed assets and materials and supplies	$9.5	$9.1