Encompass Health (NYSE: EHC) CFO reports option grant and tax share withholding

Rhea-AI Filing Summary

Encompass Health Corp executive Douglas E. Coltharp reported a new stock option grant and a related tax-withholding share disposition. He received a non-qualified stock option for 12,275 shares at $108.06 per share, which becomes exercisable in equal annual installments over three years starting March 2, 2027.

To cover tax obligations from restricted stock vesting, 776 common shares were withheld at $107.88 per share, leaving him with 69,377 directly owned common shares. The filing also lists indirect holdings held through irrevocable trusts and by his spouse, totaling additional baseline share positions.

Insider Trade Summary

5 transactions reported

Mixed 5 txns

Insider COLTHARP DOUGLAS E

Role EVP & Chief Financial Officer

Type	Security	Shares	Price	Value
Grant/Award	Non-qualified Stock Option (Right to Buy)	12,275	$108.06	$1.33M
Tax Withholding	Encompass Health Common Stock	776	$107.88	$84K
holding	Encompass Health Common Stock	--	--	--
holding	Encompass Health Common Stock	--	--	--
holding	Encompass Health Common Stock	--	--	--

Holdings After Transaction: Non-qualified Stock Option (Right to Buy) — 12,275 shares (Direct); Encompass Health Common Stock — 69,377 shares (Direct); Encompass Health Common Stock — 27,480 shares (Indirect, By irrevocable trust)

Footnotes (1)

1. These shares were withheld or surrendered to pay the insider's tax withholding obligations incurred in connection with the vesting of the related restricted stock. The option becomes exercisable in equal annual installments over a three-year period commencing March 2, 2027.

Form 4 Insider Transactions: What Each Field Means →

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

COLTHARP DOUGLAS E

(Last) (First) (Middle)

9001 LIBERTY PARKWAY

(Street)

BIRMINGHAM AL 35242

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
Encompass Health Corp [ EHC ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	EVP & Chief Financial Officer

3. Date of Earliest Transaction (Month/Day/Year)
02/28/2026

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Encompass Health Common Stock	02/28/2026		F		776(1)	D	$107.88	69,377	D
Encompass Health Common Stock								27,480	I	By irrevocable trust
Encompass Health Common Stock								125,631	I	By irrevocable trust for the benefit of children
Encompass Health Common Stock								37,749	I	By spouse

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Non-qualified Stock Option (Right to Buy)	$108.06	03/02/2026		A		12,275		03/02/2027(2)	03/02/2036	Encompass Health Common Stock	12,275	$108.06	12,275	D

Explanation of Responses:

1. These shares were withheld or surrendered to pay the insider's tax withholding obligations incurred in connection with the vesting of the related restricted stock.

2. The option becomes exercisable in equal annual installments over a three-year period commencing March 2, 2027.

	/s/ Patrick Darby, attorney-in-fact for Mr. Coltharp	03/03/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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FAQ

What insider transactions did Encompass Health (EHC) report for Douglas Coltharp?

Douglas E. Coltharp reported a new stock option grant and a tax-related share withholding. He received options for 12,275 shares and had 776 common shares withheld to satisfy tax obligations tied to restricted stock vesting.

How many Encompass Health stock options were granted to the EHC CFO?

The CFO received a grant of non-qualified stock options covering 12,275 Encompass Health shares at $108.06 per share. These options vest in three equal annual installments beginning March 2, 2027, providing staged future exercisability rather than immediate access.

Why were 776 Encompass Health (EHC) shares disposed of in this Form 4?

The 776 shares were withheld or surrendered to pay Douglas Coltharp’s tax withholding obligations arising from restricted stock vesting. This tax-withholding disposition is not an open-market sale but a mechanism to cover associated tax liabilities automatically.

How many Encompass Health shares does the CFO hold directly after these transactions?

After the tax-withholding disposition, Douglas Coltharp directly holds 69,377 shares of Encompass Health common stock. This figure reflects his remaining direct ownership following the 776-share withholding to satisfy tax obligations on vested restricted stock.

When do the newly granted Encompass Health stock options become exercisable?

The granted options become exercisable in three equal annual installments starting March 2, 2027. This means one-third of the 12,275 options vests each year over three years, aligning with a multi-year executive compensation and retention structure.

What indirect Encompass Health (EHC) holdings related to the CFO are disclosed?

The filing notes indirect holdings of Encompass Health common stock through an irrevocable trust, an irrevocable trust for the benefit of children, and by the CFO’s spouse. These positions total tens of thousands of additional shares associated with his household and trusts.