Form 4: AEP Director Art A. Garcia Phantom Stock Update

Director Art A. Garcia acquired phantom stock units in American Electric Power Co Inc as part of the director compensation plan.

Summary

• Director Art A. Garcia received phantom stock units under the AEP Stock Unit Accumulation Plan for Non-Employee Directors.
• The transaction occurred on March 31, 2026, at a valuation of $131.08 per share.
• Following this transaction, the director holds a total of 2,523 phantom stock units.
• Each phantom stock unit represents the right to receive the cash value of one share of AEP common stock upon termination of board service.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral, routine administrative filing regarding director compensation.

Positives

• Continued alignment of director interests with shareholder value through equity-linked compensation.

Negatives

• None identified; this is a routine compensation-related disclosure.

Risks

• Value of phantom stock is subject to the market performance of AEP common stock.

Future Outlook

The phantom stock units are payable in cash or shares upon the termination of the reporting person's service on the Board.

Management Comments

• Each share of phantom stock represents the right to receive the cash value of one share of AEP common stock.

Industry Context

StockSavvy.ai notes that the use of phantom stock plans for non-employee directors is a standard corporate governance practice in the utility sector to ensure long-term alignment without immediate equity dilution.

Comparison to Industry Standards

• The compensation structure is consistent with standard practices for S&P 500 utility companies.
• The use of deferred compensation plans for directors is common among peers like Duke Energy and Southern Company.

Stakeholder Impact

• Minimal impact on shareholders as this is a standard director compensation mechanism.

Next Steps

• No future actions required by the reporting person other than continued board service.

Key Dates

Keywords

AEP, American Electric Power, Form 4, Director Compensation, Phantom Stock, Insider Trading