Form 4: FirstEnergy Director Paul J. Kaleta Reports Acquisition of Phantom Stock Units

Director Paul J. Kaleta reports acquisition of 1,000 phantom stock units in FirstEnergy Corp. under the company's incentive compensation plan.

Summary

• On January 2, 2025, Paul J. Kaleta, 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.
• The reporting person directly owns 2,051 shares of common stock.
• Following the transaction, Kaleta beneficially owns 12,726.1288 derivative securities, including phantom stock units acquired through dividend reinvestments.
• 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 acquisition of phantom stock units by a director is a routine event that aligns interests with shareholders, but it doesn't represent a significant change in the company's financial outlook.

Positives

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

Future Outlook

The phantom stock units will be payable in cash or shares of FirstEnergy Corp. common stock following the conclusion of service as a director, according to the terms of the Deferred Compensation Plan for Outside Directors.

Industry Context

This filing is a routine disclosure of a director's acquisition of phantom stock units, which is a common practice in corporate governance to align the interests of directors with those of shareholders. Many companies use similar compensation plans to incentivize their board members.

Comparison to Industry Standards

• Companies like Duke Energy and American Electric Power also utilize deferred compensation plans for their directors, often involving stock-based compensation.
• The specifics of these plans vary, but the underlying principle of aligning director compensation with shareholder value is consistent across the industry.
• The number of phantom stock units granted and the terms of the deferred compensation plan are within the typical range observed for similar companies.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially encouraging decisions that benefit shareholder value.

Key Dates