Form 4: FirstEnergy Director Acquires Phantom Stock Units

FirstEnergy Corp. Director Lisa Winston Hicks reported the acquisition of 944 phantom stock units as part of her compensation plan.

Summary

• Director Lisa Winston Hicks reported changes in beneficial ownership of FirstEnergy Corp. securities.
• Acquired 944 phantom stock units on January 2, 2026, as director compensation under the FirstEnergy Corp. 2020 Incentive Compensation Plan.
• These units are deferred pursuant to the FirstEnergy Corp. Deferred Compensation Plan for Outside Directors and are payable in cash or common stock upon conclusion of service.
• The total beneficial ownership of phantom stock units after this transaction is 17,449.8748 units, including accrued dividends.
• Directly owns 2,051 shares of common stock and indirectly owns 500 shares of common stock through her spouse.

Sentiment

Score: 6

Explanation: Slightly positive due to increased director alignment with shareholder interests through equity-based compensation, which is a standard and expected practice.

Positives

• Acquisition of phantom stock units aligns the director's interests with shareholders.
• The deferred compensation plan encourages long-term commitment from directors.

Future Outlook

NA

Industry Context

This Form 4 filing is a routine disclosure of director compensation in the utility sector, reflecting standard corporate governance practices for aligning director interests with company performance through equity-based awards.

Comparison to Industry Standards

• The use of phantom stock units as a component of director compensation is a common practice among publicly traded companies, particularly in the utility sector, to incentivize long-term value creation and retain experienced board members.
• Companies like Duke Energy (DUK) and American Electric Power (AEP) also utilize similar equity-based compensation structures for their non-employee directors, often involving deferred stock units or restricted stock awards that vest over time or upon service conclusion.

Related Party Transactions

• Director Lisa Winston Hicks received 944 phantom stock units as compensation, which is a transaction between the company and a related party (director).

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with long-term shareholder value through equity-based compensation.
• Directors: Compensation structure provides deferred benefits, encouraging continued service and commitment.

Key Dates

Keywords

FirstEnergy Corp, FE, Form 4, Insider Transaction, Director Compensation, Phantom Stock Units, Beneficial Ownership, Lisa Winston Hicks