Form 4: FirstEnergy CEO Brian Tierney Reports Significant Stock Transactions, Including RSU Grant and Tax-Related Sale

FirstEnergy Corp.'s Board Chair, President, and CEO, Brian X. Tierney, reported the acquisition of 103,110 restricted stock units and the disposal of 16,625 common shares for tax withholding purposes.

Summary

• Brian X. Tierney, FirstEnergy Corp.'s Board Chair, President, and CEO, acquired 103,110 restricted stock units (RSUs) on March 19, 2025, at a price of $0. These RSUs represent a contingent right to receive one share of common stock and will vest in full on March 1, 2028.
• The acquisition of RSUs was reported late due to an inadvertent administrative error, not an error of the Reporting Person.
• On June 1, 2025, Mr. Tierney disposed of 16,625 shares of common stock at a price of $41.75 per share. This disposal was to satisfy tax withholding obligations upon the vesting of 36,630 shares of restricted common stock granted on June 1, 2023.
• Following these transactions, Mr. Tierney directly beneficially owns 367,783.891 shares of FirstEnergy common stock.
• Additionally, Mr. Tierney indirectly holds an estimated 713.408 shares through the Company's 401(k) Savings Plan as of May 31, 2025, which includes dividend reinvestment and company match features.
• The balance of 384,408.891 shares prior to the June 1, 2025 disposal included dividends accrued on time-based equity awards.

Sentiment

Score: 7

Explanation: The filing primarily details routine executive compensation transactions (RSU grant and tax-related sale). The RSU grant aligns executive interests with shareholders, which is positive. The late filing due to administrative error is a minor negative but explicitly stated not to be the reporting person's fault. Overall, it's a neutral to slightly positive event as it shows continued executive commitment through equity.

Positives

• Acquisition of 103,110 restricted stock units by the CEO indicates continued alignment of management's interests with shareholder value, as these awards vest over time.
• The RSU grant is part of the Company's 2020 Incentive Compensation Plan, suggesting ongoing use of equity-based incentives for key executives.

Negatives

• The disposal of 16,625 shares for tax withholding purposes represents a reduction in direct beneficial ownership, although it is a common practice for equity compensation.
• The late reporting of the RSU acquisition due to an 'inadvertent administrative error' could raise minor questions about internal compliance processes, though it's explicitly stated not to be an error of the reporting person.

Risks

• The late filing of the Form 4 due to an 'inadvertent administrative error' could potentially lead to minor regulatory scrutiny, although the filing explicitly states it was not an error of the reporting person.

Future Outlook

The vesting of 103,110 restricted stock units on March 1, 2028, indicates a future increase in direct beneficial ownership for the CEO, contingent on continued employment and company performance.

Industry Context

This Form 4 filing reflects routine executive compensation practices within the utility sector, where equity awards like Restricted Stock Units (RSUs) are commonly used to align executive incentives with long-term shareholder value. The tax-related sale is a standard procedure upon the vesting of such awards.

Stakeholder Impact

• Shareholders: The grant of RSUs to the CEO aligns management's long-term interests with shareholder value, potentially fostering better performance.
• Employees: The 401(k) Savings Plan mentioned indicates a benefit available to employees, including dividend reinvestment and company match features.

Next Steps

• Vesting of 103,110 Restricted Stock Units on March 1, 2028.

Key Dates

Recommendation

Keywords

FirstEnergy Corp, FE, Brian X. Tierney, SEC Form 4, Beneficial Ownership, Restricted Stock Units, RSUs, Stock Grant, Insider Trading, Executive Compensation, Tax Withholding, Equity Awards, Corporate Governance