Form 4: FirstEnergy Director Melvin Williams Reports Acquisition of Phantom Stock Units and Updated Holdings

FirstEnergy Corp. Director Melvin D. Williams has reported the acquisition of 1,055 phantom stock units and updated his beneficial ownership of common stock and total phantom stock holdings.

Summary

• Melvin D. Williams, a Director of FirstEnergy Corp. (FE), reported changes in his beneficial ownership.
• As of July 1, 2025, Williams directly beneficially owns 2,812.128 shares of FirstEnergy Common Stock, which includes shares acquired through dividend reinvestments.
• On July 1, 2025, Williams acquired 1,055 phantom stock units under the FirstEnergy Corp. 2020 Incentive Compensation Plan, deferred via the FirstEnergy Corp. Deferred Compensation Plan for Outside Directors.
• Each phantom stock unit is the economic equivalent of one share of common stock and is convertible on a 1-for-1 basis.
• Following this acquisition, Williams' total beneficial ownership of phantom stock units is 15,124.3477, which includes accrued dividends on these units.

Sentiment

Score: 6

Explanation: The document reports routine compensation and an increase in beneficial ownership for a director, which is generally a neutral to slightly positive signal as it indicates continued alignment of interests.

Positives

• The acquisition of 1,055 phantom stock units represents additional compensation for the director.
• The increase in common stock holdings through dividend reinvestments indicates a growing equity stake in the company.

Risks

• No specific company risks are detailed in this insider transaction report.

Future Outlook

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

Industry Context

This Form 4 filing is a routine disclosure of insider transactions, specifically related to director compensation. Phantom stock units are a common form of equity-based compensation for directors, aligning their interests with shareholders by linking their compensation to the company's stock performance.

Related Party Transactions

• The acquisition of phantom stock units by Director Melvin D. Williams from FirstEnergy Corp. constitutes a related party transaction, as it is a compensation arrangement between the company and a member of its board of directors.

Stakeholder Impact

• Shareholders: The issuance of phantom stock units is a form of director compensation, which is a standard operational expense. Future conversion to shares could lead to minor dilution, but this is typically factored into compensation plans.
• Director (Melvin D. Williams): Directly benefits from increased equity-linked compensation and an expanded stake in the company.

Next Steps

• Phantom stock units will be paid out in cash or shares of FirstEnergy Corp. common stock upon the conclusion of the director's service.

Key Dates

Keywords

FirstEnergy, FE, SEC Form 4, Insider Transaction, Director Compensation, Phantom Stock Units, Beneficial Ownership, Equity Compensation, Dividend Reinvestment