Form 4: FirstEnergy Director Acquires Phantom Stock Units

FirstEnergy Corp. Director Steven J. Demetriou reported the acquisition of 944 phantom stock units as part of his director compensation plan, increasing his total beneficial ownership of derivative securities to 28,078.8231 units.

Summary

• Steven J. Demetriou, a Director of FirstEnergy Corp. (FE), reported changes in his beneficial ownership.
• He acquired 944 phantom stock units on January 2, 2026.
• These units were granted as quarterly director compensation under the FirstEnergy Corp. 2020 Incentive Compensation Plan and deferred under the Deferred Compensation Plan for Outside Directors.
• Each phantom stock unit is economically equivalent to one share of common stock and is payable in cash or shares upon conclusion of service as a director.
• Following this transaction, Demetriou beneficially owns 28,078.8231 phantom stock units.
• He also directly owns 12,431 shares of FirstEnergy Corp. common stock.
• The reported phantom stock units include accrued dividends.

Sentiment

Score: 7

Explanation: This is a routine compensation report for a director, indicating alignment of interests but not a significant market-moving event. It reflects standard corporate governance practices.

Positives

• Director Steven J. Demetriou acquired 944 phantom stock units, aligning his interests with shareholders.
• The compensation structure encourages long-term commitment, as units are payable after service as a director.

Future Outlook

The phantom stock units are payable in cash or shares of FirstEnergy Corp. common stock following the conclusion of Steven J. Demetriou's service as a director, in accordance with the terms of the Deferred Compensation Plan for Outside Directors.

Management Comments

• The phantom stock units represent shares paid quarterly for director compensation under the FirstEnergy Corp. 2020 Incentive Compensation Plan and deferred pursuant to the FirstEnergy Corp. Deferred Compensation Plan for Outside Directors.

Industry Context

Routine insider compensation reporting, particularly for directors receiving equity-based compensation, is a common practice across various industries, including the utilities sector. This aligns the interests of company leadership with long-term shareholder value.

Comparison to Industry Standards

• Equity-based compensation for directors, such as phantom stock units, is a standard practice in publicly traded companies, including utilities like FirstEnergy Corp., to align director incentives with long-term shareholder value.
• The deferral of compensation until the conclusion of service is also a common corporate governance practice, promoting sustained commitment and long-term perspective among board members.

Corporate Governance

Related Party Transactions

• Acquisition of 944 phantom stock units by Director Steven J. Demetriou as part of his compensation package, which is a transaction between a related party (director) and the company.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with long-term shareholder value through equity-based compensation.
• Management: Reflects the ongoing implementation of established compensation plans for outside directors.

Next Steps

• Payout of phantom stock units in cash or shares following the conclusion of Steven J. Demetriou's service as a director.

Key Dates

Recommendation

This Form 4 filing reports a routine compensation event for a director, involving the acquisition of phantom stock units. It does not contain information that would fundamentally alter the investment thesis for FirstEnergy Corp. While it indicates continued alignment of director interests with shareholders, it is not a catalyst for a 'buy' or 'sell' recommendation. Therefore, a 'hold' recommendation is appropriate as it provides no new material information to change an existing position.

Keywords

FirstEnergy, FE, Steven J. Demetriou, Director, Form 4, Phantom Stock, Compensation, Equity, Beneficial Ownership, Insider Transaction