ENTERGY MISSISSIPPI, LLCEMP
ENTERGY MISSISSIPPI, LLC Stock Compensation Disclosure
STOCK-BASED COMPENSATION (Entergy Corporation)
Entergy grants stock options, restricted stock, performance units, and restricted stock units to key employees of the Entergy subsidiaries under its equity plans which are shareholder-approved stock-based compensation plans. The cost of the stock-based compensation is charged to income over the vesting period. Awards under Entergy’s plans generally vest over three years. Entergy accounts for forfeitures of stock-based compensation when they occur. Entergy recognizes all income tax effects related to share-based payments through the income statement.
Effective May 3, 2019, Entergy’s shareholders approved the 2019 Omnibus Incentive Plan (2019 Plan). The maximum number of common shares that can be issued from the 2019 Plan for 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, 2025, there were 12,559,567 authorized shares remaining for stock-based awards.
Stock Options
Stock 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.
The following table includes financial information for stock options for each of the years presented:
| 2025 | 2024 | 2023 | |||||||||||||||
| (In Millions) | |||||||||||||||||
| Compensation expense included in Entergy’s consolidated net income | $4.0 | $4.0 | $4.1 | ||||||||||||||
| Tax benefit recognized in Entergy’s consolidated net income | $1.0 | $1.0 | $1.1 | ||||||||||||||
Compensation cost capitalized as part of fixed assets and materials and supplies | $2.0 | $1.9 | $1.9 | ||||||||||||||
Entergy 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:
| 2025 | 2024 | 2023 | |||||||||||||||
| Stock price volatility | 26.35% | 25.24% | 24.89% | ||||||||||||||
| Expected term in years | 6.79 | 6.88 | 6.89 | ||||||||||||||
| Risk-free interest rate | 4.31% | 4.03% | 3.51% | ||||||||||||||
| Dividend yield | 4.00% | 4.30% | 4.00% | ||||||||||||||
| Dividend payment per share | $2.44 | $2.30 | $2.17 | ||||||||||||||
Stock 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 own shares of Entergy Corporation common stock equal to a specified multiple of his or her salary. Until an executive officer achieves this ownership position the executive officer is required to retain 75% of the net-of-tax net profit upon exercise of the option to be held in Entergy Corporation common stock. The reduction in fair value of the stock options due to this restriction is based upon an estimate of the call option value of the reinvested gain discounted to present value over the applicable reinvestment period.
A summary of stock option activity for the year ended December 31, 2025 and changes during the year are presented below:
Number of Options | Weighted- Average Exercise Price | Aggregate Intrinsic Value | Weighted- Average Contractual Life | ||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Data) | |||||||||||||||||||||||
Options outstanding as of January 1, 2025 | 3,226,456 | $53.38 | |||||||||||||||||||||
| Options granted | 366,136 | $82.79 | |||||||||||||||||||||
| Options exercised | (652,497) | $55.53 | |||||||||||||||||||||
| Options forfeited/expired | (16,449) | $64.05 | |||||||||||||||||||||
Options outstanding as of December 31, 2025 | 2,923,646 | $56.52 | $99,370 | 6.07 | |||||||||||||||||||
Options exercisable as of December 31, 2025 | 1,943,447 | $53.47 | $75,109 | 4.98 | |||||||||||||||||||
Weighted-average grant-date fair value of options granted during 2025 | $17.43 | ||||||||||||||||||||||
The weighted-average grant-date fair value of options granted during the year was $9.31 for 2024 and $10.04 for 2023. The total intrinsic value of stock options exercised was $20 million during 2025, $56 million during 2024, and $2 million during 2023. The intrinsic value, which has no effect on net income, of the outstanding stock
options exercised 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 December 31, 2025. Entergy recognizes compensation cost over the vesting period of the options based on their grant-date fair value. The total fair value of options that vested was approximately $6 million during 2025, $6 million during 2024, and $6 million during 2023. Cash received from option exercises was $36 million for the year ended December 31, 2025. The tax benefits realized from options exercised was $4.8 million for the year ended December 31, 2025.
The following table summarizes information about stock options outstanding as of December 31, 2025:
| Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||||
| Range of Exercise Price | As of December 31, 2025 | Weighted-Average Remaining Contractual Life-Yrs. | Weighted-Average Exercise Price | Number Exercisable as of December 31, 2025 | Weighted-Average Exercise Price | ||||||||||||||||||||||||||||||
| $30.00 | - | $39.99 | 222,934 | 1.66 | $37.51 | 222,934 | $37.51 | ||||||||||||||||||||||||||||
| $40.00 | - | $49.99 | 970,092 | 6.57 | $48.31 | 525,282 | $47.28 | ||||||||||||||||||||||||||||
| $50.00 | - | $59.99 | 887,717 | 6.53 | $54.54 | 711,573 | $54.62 | ||||||||||||||||||||||||||||
| $60.00 | - | $69.99 | 483,658 | 4.08 | $65.86 | 483,658 | $65.86 | ||||||||||||||||||||||||||||
| $70.00 | - | $79.99 | — | 0 | $— | — | $— | ||||||||||||||||||||||||||||
| $80.00 | - | $89.99 | 359,245 | 9.02 | $82.79 | — | $— | ||||||||||||||||||||||||||||
| $35.27 | - | $82.79 | 2,923,646 | 6.07 | $56.52 | 1,943,447 | $53.47 | ||||||||||||||||||||||||||||
Stock-based compensation cost related to non-vested stock options outstanding as of December 31, 2025 not yet recognized is approximately $7 million and is expected to be recognized over a weighted-average period of 1.7 years.
Restricted Stock Awards
Entergy grants restricted stock awards under its stock benefit plans in the form of stock units. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date and are expensed ratably over the three-year vesting period. Shares of restricted stock have the same dividend and voting rights as other common stock and are considered issued and outstanding shares of Entergy upon vesting. Restricted stock awards are valued at the closing price of Entergy Corporation’s common stock on the grant date.
The following table includes information about the restricted stock awards outstanding as of December 31, 2025:
| Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
Outstanding shares at January 1, 2025 | 1,447,251 | $51.74 | |||||||||
| Granted | 544,394 | $81.59 | |||||||||
| Vested | (678,756) | $52.76 | |||||||||
| Forfeited | (77,343) | $59.00 | |||||||||
Outstanding shares at December 31, 2025 | 1,235,546 | $63.88 | |||||||||
The following table includes financial information for restricted stock for each of the years presented:
| 2025 | 2024 | 2023 | |||||||||||||||
| (In Millions) | |||||||||||||||||
| Compensation expense included in Entergy’s consolidated net income | $25.9 | $24.4 | $22.2 | ||||||||||||||
| Tax benefit recognized in Entergy’s consolidated net income | $6.4 | $6.2 | $5.7 | ||||||||||||||
Compensation cost capitalized as part of fixed assets and materials and supplies | $13.2 | $11.3 | $9.7 | ||||||||||||||
The total fair value of the restricted stock awards granted was $44 million, $43 million, and $41 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The total fair value of the restricted stock awards vested was $36 million, $32 million, and $33 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Long-Term Performance Unit Program
Entergy grants long-term incentive awards under its stock benefit plans in the form of performance units, which represents 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. The Long-Term Performance Unit Program specifies a minimum, target, and maximum achievement level, the achievement of which will determine the number of performance units that may be earned. Entergy measures performance by assessing Entergy’s total shareholder return relative to the total shareholder return of the companies in the Philadelphia Utility Index. 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 with relative total shareholder return weighted at eighty percent and the environmental achievement measure weighted at twenty percent. The total shareholder return portion is valued based on various factors, primarily market conditions; and the environmental achievement measure portion is valued based on the closing price of Entergy Corporation’s common stock on the grant date. Performance units do not have voting rights prior to vesting. Performance units are considered issued and outstanding shares of Entergy upon vesting and are expensed ratably over the three-year vesting period. 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.
The following table includes information about the long-term performance units outstanding at the target level as of December 31, 2025:
| Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
Outstanding shares at January 1, 2025 | 886,602 | $62.94 | |||||||||
| Granted | 486,991 | $38.64 | |||||||||
| Vested | (538,015) | $66.56 | |||||||||
| Forfeited | (66,486) | $45.54 | |||||||||
Outstanding shares at December 31, 2025 | 769,092 | $46.53 | |||||||||
The following table includes financial information for the long-term performance units for each of the years presented:
| 2025 | 2024 | 2023 | |||||||||||||||
| (In Millions) | |||||||||||||||||
| Compensation expense included in Entergy’s consolidated net income | $11.4 | $12.0 | $11.1 | ||||||||||||||
| Tax benefit recognized in Entergy’s consolidated net income | $2.8 | $3.1 | $2.8 | ||||||||||||||
Compensation cost capitalized as part of fixed assets and materials and supplies | $5.9 | $5.7 | $5.2 | ||||||||||||||
The total fair value of the long-term performance units granted was $19 million, $24 million, and $20 million for the years ended December 31, 2025, 2024, and 2023, respectively.
In January 2025, Entergy issued 538,015 shares of Entergy Corporation common stock at a share price of $81.99 for awards earned and dividends accrued under the 2022-2024 Long-Term Performance Unit Program. In January 2024, Entergy issued 432,804 shares of Entergy Corporation common stock at a share price of $49.43 for awards earned and dividends accrued under the 2021-2023 Long-Term Performance Unit Program. In January 2023, Entergy issued 76,300 shares of Entergy Corporation common stock at a share price of $53.80 for awards earned and dividends accrued under the 2020-2022 Long-Term Performance Unit Program.
Restricted Stock Unit Awards
Entergy grants restricted stock unit awards under its stock benefit plans in the form of stock units that are subject to time-based restrictions. The restricted stock units may be settled in shares of Entergy Corporation common stock or the cash value of shares of Entergy Corporation common stock at the time of vesting. The costs of restricted stock unit awards are charged to income over the restricted period, which varies from grant to grant. The average vesting period for restricted stock unit awards granted is 36 months. As of December 31, 2025, there were 186,102 unvested restricted stock units that are expected to vest over an average period of 37 months.
The following table includes information about the restricted stock unit awards outstanding as of December 31, 2025:
| Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
Outstanding shares at January 1, 2025 | 230,058 | $56.73 | |||||||||
| Granted | 53,276 | $86.30 | |||||||||
| Vested | (64,032) | $90.83 | |||||||||
| Forfeited | (33,200) | $55.24 | |||||||||
Outstanding shares at December 31, 2025 | 186,102 | $53.72 | |||||||||
The following table includes financial information for restricted stock unit awards for each of the years presented:
| 2025 | 2024 | 2023 | |||||||||||||||
| (In Millions) | |||||||||||||||||
| Compensation expense included in Entergy’s consolidated net income | $1.8 | $2.5 | $2.8 | ||||||||||||||
| Tax benefit recognized in Entergy’s consolidated net income | $0.5 | $0.6 | $0.7 | ||||||||||||||
Compensation cost capitalized as part of fixed assets and materials and supplies | $1.0 | $1.2 | $1.2 | ||||||||||||||
The total fair value of the restricted stock unit awards granted was $5 million, $4 million, and $2 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The total fair value of the restricted stock unit awards vested was $6 million, $5 million, and $1 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 23, 2024 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.