Form 4: Exelon Director Acquires Deferred Stock Units

Exelon Corp. Director Anna Richo reported the acquisition of deferred stock units and phantom share equivalents, valued at approximately $72,495, with a transaction date of September 30, 2025, as part of her compensation plan.

Summary

• Anna Richo, a Director of Exelon Corp (EXC), reported transactions involving company securities.
• On September 30, 2025, Richo acquired 950 common stock-deferred stock units at a price of $43.43 per unit, totaling $41,258.50.
• These deferred stock units are held indirectly through the Exelon Corp. Directors Deferred Stock Unit Plan, bringing her total indirect beneficial ownership to 9,346 units, which includes 77 additional shares acquired through automatic dividend reinvestment.
• Additionally, on September 30, 2025, Richo acquired 694 deferred phantom share equivalents at a price of $45.01 per unit, totaling $31,236.94.
• These phantom share equivalents are held directly in her Exelon stock fund account, part of a multi-fund, non-qualified deferred compensation plan.
• The phantom share equivalents will be settled for cash on a 1-for-1 basis upon the termination of her service to the board of directors, bringing her total direct beneficial ownership to 7,082 units, which includes 55 additional phantom share equivalents accrued by the plan administrator on the ex-dividend date.

Sentiment

Score: 7

Explanation: The acquisition of deferred stock units and phantom share equivalents by a director is generally viewed positively as it aligns management's interests with shareholders, indicating confidence in the company's future performance, even if it's part of a compensation plan rather than a discretionary open-market purchase.

Positives

• Director Anna Richo increased her beneficial ownership in Exelon Corp. through the acquisition of 950 deferred stock units and 694 deferred phantom share equivalents.
• The acquisitions, part of a compensation plan, demonstrate continued alignment of director interests with shareholder value.
• The inclusion of additional units from automatic dividend reinvestment and accruals indicates ongoing participation in company growth and performance.

Future Outlook

The deferred phantom share equivalents will be settled for cash on a 1-for-1 basis upon the termination of the reporting person's service to the board of directors.

Industry Context

This Form 4 filing details a routine insider transaction related to director compensation. Such filings are common in the utility sector and across publicly traded companies, reflecting standard practices for aligning executive and director interests with long-term shareholder value through equity-linked compensation plans.

Comparison to Industry Standards

• The compensation structure involving deferred stock units and phantom share equivalents is a common practice for director remuneration in large publicly traded companies, aligning director interests with long-term shareholder value.
• No specific comparable companies, projects, or results were detailed in the filing to provide a direct benchmark comparison.

Corporate Governance

Related Party Transactions

• The acquisition of deferred stock units and phantom share equivalents by a director from the issuer (Exelon Corp.) constitutes a related party transaction, which is a standard and disclosed component of director compensation.

Stakeholder Impact

• Shareholders' interests are further aligned with management through the director's increased beneficial ownership in the company's equity-linked compensation plans.

Next Steps

• Settlement of deferred phantom share equivalents for cash upon the termination of Anna Richo's service to the board of directors.

Key Dates

Recommendation

This Form 4 filing details routine compensation-related acquisitions of deferred stock units and phantom share equivalents by a director. While insider acquisitions can be a positive signal, these transactions are part of a pre-established compensation plan and do not indicate a discretionary open-market purchase that would typically signal a strong 'buy' recommendation. The filing provides no new material information to alter the fundamental investment outlook for Exelon Corp, thus a 'hold' recommendation is appropriate.

Keywords

Exelon, EXC, Form 4, Insider Transaction, Director Compensation, Deferred Stock Units, Phantom Shares, Anna Richo