Form 4: AEP Director Art Garcia Acquires Phantom Stock Units

American Electric Power Co. Inc. Director Art A. Garcia acquired 368 phantom stock units valued at $115.31 per unit.

Summary

• Art A. Garcia, a Director of American Electric Power Co. Inc. (AEP), acquired 368 phantom stock units.
• The transaction date for this acquisition was December 31, 2025.
• Each phantom stock unit represents the right to receive the cash value of one share of AEP common stock.
• The AEP stock price at the time of the transaction was $115.31 per share.
• Following this transaction, Mr. Garcia beneficially owns 2,184 phantom stock units.
• These units are part of the AEP Stock Unit Accumulation Plan for Non-Employee Directors.
• The phantom stock units are payable in cash or shares upon termination of Mr. Garcia's service on the Board.

Sentiment

Score: 5

Explanation: The filing is neutral, detailing a routine compensation event for a director, which is an expected part of corporate governance and executive compensation structures.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of shareholders, as the value is tied to AEP's common stock performance.
• The AEP Stock Unit Accumulation Plan provides a structured compensation mechanism for non-employee directors.

Future Outlook

The phantom stock units acquired by Director Garcia are payable in cash or shares following the termination of his service on the Board. He retains the flexibility to transfer these units into an alternative investment account at any time.

Industry Context

This filing represents a routine disclosure of director compensation in the form of equity-linked instruments, common practice across various industries, including the utilities sector, to incentivize long-term alignment with company performance.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by a director from the issuer constitutes a related party transaction as it involves compensation provided by the company to a member of its board.

Stakeholder Impact

• Shareholders: The transaction aligns the director's financial interests with the company's stock performance, potentially encouraging decisions that benefit long-term shareholder value.
• Employees: No direct impact on general employees is indicated by this specific filing.

Next Steps

• The phantom stock units will be paid out in cash or shares upon the termination of the reporting person's service on the Board.

Key Dates

Keywords

American Electric Power, AEP, Form 4, Insider Transaction, Director Compensation, Phantom Stock Units, Equity Compensation