Form 4: FirstEnergy CEO Tierney Reports RSU Vesting, Stock Transactions

FirstEnergy Corp.'s Chairman, President, and CEO, Brian X. Tierney, reported the vesting of restricted stock units and related stock transactions, including tax withholdings and cash settlements.

Summary

• Brian X. Tierney, Chairman, President, and CEO of FirstEnergy Corp., reported several transactions on March 1, 2026.
• Acquired 80,342 time-based restricted stock units (RSUs) at a price of $0, which will vest in full on March 1, 2029.
• 229,580.554 performance-adjusted restricted stock units (RSUs) vested and converted into common stock on a one-for-one basis.
• 68,362 shares of common stock were automatically withheld at $50.97 to cover tax obligations related to the vesting of share-based RSUs.
• 76,302.554 cash-based RSUs were settled at $50.97, net of tax withholding, based on the average stock price on February 27, 2026.
• Following these transactions, Tierney directly beneficially owns 538,135.084 shares of common stock.
• An estimated 930.435 shares are indirectly held in the Company's 401(k) Savings Plan as of February 28, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive filing, reflecting the successful vesting of performance-based awards and continued long-term incentive alignment for the CEO, which are generally favorable for corporate governance and shareholder interests.

Positives

• Significant vesting of performance-adjusted restricted stock units (229,580.554 shares), indicating achievement of performance goals certified by the Board of Directors.
• Grant of new time-based restricted stock units (80,342 shares) demonstrates continued long-term incentive alignment with shareholder interests.

Negatives

• Disposition of 68,362 shares to cover tax obligations and 76,302.554 shares from cash-based RSU settlement reduces direct beneficial ownership, though this is a standard practice for equity compensation.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that the vesting and granting of restricted stock units are standard practices in executive compensation within the utility sector, aligning management incentives with long-term shareholder value. The transactions reflect the typical cycle of equity compensation for senior executives at publicly traded companies like FirstEnergy, a major electric utility.

Comparison to Industry Standards

• The use of performance-adjusted and time-based restricted stock units for executive compensation is a common practice across the S&P 500, including utility companies such as Duke Energy (DUK) and Southern Company (SO), which similarly tie a significant portion of executive pay to company performance and long-term service.
• The automatic withholding of shares for tax obligations upon vesting is a standard mechanism to manage tax liabilities for equity awards, consistent with practices observed at peer companies.
• The settlement of cash-based RSUs, while less common than pure stock settlement, is also seen in some compensation structures, offering executives a mix of equity and cash liquidity, similar to hybrid plans at companies like Exelon (EXC).

Stakeholder Impact

• Shareholders: The vesting of performance-based RSUs indicates that the company met certain performance goals, which is generally positive for shareholders. The grant of new time-based RSUs aligns the CEO's interests with long-term shareholder value creation.
• Management/Employees: The transactions reflect the execution of the company's executive compensation plan, providing incentives and rewards for the CEO's performance and continued service.

Next Steps

• The newly acquired time-based restricted stock units are scheduled to vest in full on March 1, 2029.

Key Dates

Recommendation

The filing details routine executive compensation events, including the vesting of performance-based awards and the grant of new long-term incentives. These transactions are expected and do not signal a material change in the company's fundamental outlook or the CEO's commitment. Therefore, a 'hold' recommendation is appropriate as the filing provides no new information to alter an existing investment thesis.

Keywords

FirstEnergy Corp, FE, Brian X Tierney, Insider Trading, Form 4, Restricted Stock Units, RSU Vesting, Executive Compensation, Stock Transactions, Corporate Governance, Utility Sector