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

Director Paul J. Kaleta reports acquisition of phantom stock units in FirstEnergy Corp. through a deferred compensation plan.

Summary

• On October 1, 2024, Paul J. Kaleta, a director of FirstEnergy Corp., acquired 900 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 phantom stock units are payable in cash or shares of FirstEnergy Corp. common stock upon conclusion of service as a director.
• Each phantom stock unit is economically equivalent to one share of common stock.
• Following the transaction, Kaleta beneficially owns 2,051 shares of common stock directly and 11,610.1636 phantom stock units indirectly.
• The price of the derivative security is $0.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, indicating a neutral to slightly positive sentiment as it aligns director interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan may incentivize long-term commitment from the director.

Future Outlook

The phantom stock units will be payable in cash or shares of FirstEnergy Corp. common stock following conclusion of service as a director.

Industry Context

Executive compensation packages often include stock options, restricted stock, or phantom stock units to align management's interests with shareholder value. Deferred compensation plans are also common for directors.

Comparison to Industry Standards

• Companies like Duke Energy and Exelon also utilize deferred compensation plans for their directors, often involving stock-based compensation.
• The amount of phantom stock units granted to FirstEnergy's directors can be compared to similar grants at peer companies to assess competitiveness and alignment with performance.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to decisions that benefit shareholder value.
• The deferred compensation plan may incentivize long-term commitment from the director, benefiting the company and its stakeholders.

Key Dates