Form 4: FirstEnergy Director Leslie M. Turner Reports Acquisition of Phantom Stock Units

Director Leslie M. Turner reports acquiring phantom stock units in FirstEnergy Corp. through a compensation plan.

Summary

• On January 2, 2025, Leslie M. Turner, a director of FirstEnergy Corp., acquired 1,000 phantom stock units.
• These units were obtained through the FirstEnergy Corp. 2020 Incentive Compensation Plan and deferred under the Deferred Compensation Plan for Outside Directors.
• The reporting person directly owns 4,497 shares of common stock.
• Following the transaction, Turner beneficially owns 22,713.3567 derivative securities.
• Each phantom stock unit is the economic equivalent of one share of common stock and is payable in cash or shares upon conclusion of service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard director compensation practices and aligns director interests with the company's performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the company's performance.
• The compensation plan encourages long-term commitment from the director.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It provides transparency into the compensation structure for board members.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units.
• Phantom stock units are a common tool used to align director interests with shareholder value, similar to practices at companies like Duke Energy and American Electric Power.
• The specific terms of FirstEnergy's Deferred Compensation Plan for Outside Directors would need to be compared to those of peer companies to assess its competitiveness.

Stakeholder Impact

• Shareholders may view the acquisition of phantom stock units as a positive sign, indicating that the director's interests are aligned with increasing shareholder value.

Key Dates