Form 4: FirstEnergy Director Melvin D. Williams Reports Acquisition of Phantom Stock Units

Director Melvin D. Williams reports acquisition of phantom stock units and dividend reinvestments in FirstEnergy Corp.

Summary

• On January 2, 2025, Melvin D. Williams, a director of FirstEnergy Corp, acquired 1,000 phantom stock units.
• These units were granted under the FirstEnergy Corp. 2020 Incentive Compensation Plan and deferred pursuant to the FirstEnergy Corp. Deferred Compensation Plan for Outside Directors.
• Williams also acquired additional shares of common stock through dividend reinvestments.
• Following these transactions, Williams beneficially owns 2,752.965 shares of common stock directly and 12,726.1288 phantom stock units.
• 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. The filing indicates standard compensation practices and continued investment by a director, which is generally viewed favorably.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• Dividend reinvestments indicate a continued investment in FirstEnergy Corp.'s common stock.

Future Outlook

The document does not contain specific forward-looking statements, but the phantom stock units are payable in the future upon conclusion of service as a director.

Industry Context

This filing is a routine disclosure of a director's beneficial ownership changes, which is common in publicly traded companies. It reflects standard compensation practices using phantom stock units to align director interests with shareholder value.

Comparison to Industry Standards

• Director compensation packages often include phantom stock or restricted stock units to incentivize long-term performance, similar to practices at comparable utilities like Duke Energy or Exelon.
• The use of deferred compensation plans for outside directors is a common practice to attract and retain experienced board members, aligning with industry norms.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of shareholders, potentially leading to decisions that enhance shareholder value.
• The filing provides transparency to stakeholders regarding the director's holdings in the company.

Key Dates