Form 4: FirstEnergy Director Paul J. Kaleta Acquires Over 1,000 Phantom Stock Units

FirstEnergy Corp. Director Paul J. Kaleta has acquired 1,055 phantom stock units as part of the company's incentive and deferred compensation plans, increasing his total beneficial ownership of phantom stock units to over 15,000.

Summary

• Paul J. Kaleta, a Director of FirstEnergy Corp. (FE), acquired 1,055 phantom stock units on July 1, 2025.
• These phantom stock units were acquired under the FirstEnergy Corp. 2020 Incentive Compensation Plan and deferred pursuant to the FirstEnergy Corp. Deferred Compensation Plan for Outside Directors.
• Following this transaction, Paul J. Kaleta beneficially owns a total of 15,124.3477 phantom stock units.
• Each phantom stock unit is the economic equivalent of one share of FirstEnergy Corp. common stock and includes accrued dividends.
• The phantom stock is payable in cash or shares of FirstEnergy Corp. common stock following the conclusion of service as a director.
• Additionally, Paul J. Kaleta directly owns 2,051 shares of FirstEnergy Corp. common stock.

Sentiment

Score: 7

Explanation: The document reports a routine compensation grant to a director, which is a positive for aligning interests but not a significant market-moving event. It reflects standard corporate governance practices.

Positives

• The acquisition of phantom stock units aligns the director's financial interests with those of the shareholders, as the value of these units is tied directly to the company's common stock performance.
• The transaction represents a routine grant under established compensation plans, indicating stable corporate governance practices regarding director remuneration.

Future Outlook

The acquired phantom stock units are structured to be payable in cash or shares of FirstEnergy Corp. common stock following the conclusion of Paul J. Kaleta's service as a director, aligning future compensation with long-term company performance.

Industry Context

This Form 4 filing is a standard disclosure for an insider transaction within the utility sector, reflecting a common practice of compensating directors with equity-linked instruments to align their interests with long-term shareholder value.

Comparison to Industry Standards

• Not applicable for this type of filing, as it details a specific insider's compensation grant rather than company-wide financial performance or operational benchmarks. Such grants are common across industries for director compensation.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by Director Paul J. Kaleta from FirstEnergy Corp. constitutes a related party transaction, as it involves compensation provided by the company to a member of its board of directors under established compensation plans.

Stakeholder Impact

• Shareholders: The grant of phantom stock units to a director helps align the director's long-term financial interests with those of the shareholders, potentially encouraging decisions that enhance shareholder value.
• Director (Paul J. Kaleta): Receives compensation in the form of equity-linked units, which will vest and be payable after the conclusion of his service, providing a deferred benefit tied to company performance.

Next Steps

• Phantom stock units will be payable in cash or shares of FirstEnergy Corp. common stock following the conclusion of Paul J. Kaleta's service as a director.

Key Dates

Recommendation

Keywords

FirstEnergy, FE, Form 4, Insider Transaction, Director Compensation, Phantom Stock, Equity Compensation, Beneficial Ownership, Corporate Governance