Form 4: New Jersey Resources Corp CEO Stephen Westhoven Reports Stock Transactions Following Vesting of Performance Share Units

Stephen Westhoven, President & CEO of New Jersey Resources Corp, reports acquisition and disposal of common stock related to vesting of performance-based restricted stock units and performance share units.

Summary

• On November 6, 2024, Stephen Westhoven, President & CEO of New Jersey Resources Corp, reported transactions involving the company's common stock.
• These transactions include the acquisition of 13,025 shares at $46.94 related to the vesting of performance-based restricted stock units, plus 491 accrued dividend equivalents.
• Westhoven also acquired 19,979 performance share units, which vested at 124 percent of target (plus 2,021 dividend equivalents), after a 36-month period beginning on October 1, 2021.
• Additionally, 24,368 performance share units vested at 150 percent of target (plus 2,465 dividend equivalents), after a 36-month period beginning on October 1, 2021.
• Concurrently, Westhoven disposed of 6,415 shares, 9,840 shares and 12,002 shares at $46.94 to cover tax obligations arising from the vesting of these units.
• Following these transactions, Westhoven directly owns 209,004.341 shares of New Jersey Resources Corp common stock, which includes an adjustment of 128.112 shares accrued through dividends under the NJR Employee Retirement Savings 401(k) and Employee Stock Ownership Plans.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of performance-based equity suggests the company is meeting its goals, which is a positive sign. The transactions themselves are routine and expected.

Positives

• The vesting of performance-based restricted stock units and performance share units indicates that the company met certain performance goals set by the Leadership Development and Compensation Committee (LDCC).

Future Outlook

The second and third tranches of the performance-based restricted stock units will vest on September 30, 2025, and September 30, 2026, respectively, contingent upon continued performance goal satisfaction.

Industry Context

Form 4 filings are routine disclosures required by the SEC to ensure transparency in insider trading activities, allowing investors to monitor the actions of company executives and directors.

Comparison to Industry Standards

• Executive compensation packages often include performance-based equity awards to align management's interests with those of shareholders.
• Vesting schedules and performance metrics vary across companies and industries, but typically involve achieving specific financial or operational targets over a multi-year period.
• Companies like NextEra Energy (NEE) and Southern Company (SO) also utilize performance-based equity compensation for their executives, with similar vesting schedules and performance criteria tied to financial and operational goals.

Stakeholder Impact

• Shareholders may view the vesting of performance-based equity as a positive sign, indicating that management is incentivized to achieve company goals.
• The transactions have a minimal impact on other stakeholders.

Key Dates