Form 4: NJR Director Correll's Deferred Stock Unit Vesting

New Jersey Resources Corp. Director Donald L. Correll reported the vesting and distribution of deferred restricted stock units, including accrued dividends, as part of his compensation plan.

Summary

• Director Donald L. Correll acquired 1,007 shares of New Jersey Resources Corp. Common Stock on January 5, 2026, at a price of $45.74 per share.
• This acquisition represents the distribution of restricted stock units from a 2021 vesting that was deferred pursuant to the NJR Directors' Deferred Compensation Plan.
• The acquired shares include 137 shares attributed to accrued dividends.
• Correll also disposed of 870.2 Restricted Stock Units, which were part of director fees deferred under the same plan, to be paid in NJR Common Stock in five installments starting January 2026.
• Following these transactions, Correll beneficially owns 4,565.876 shares of Common Stock and 4,030.879 Restricted Stock Units.

Sentiment

Score: 6

Explanation: Neutral to slightly positive. It's a routine compensation filing, but the director's continued equity ownership and participation in a deferred plan is a positive for alignment with shareholders.

Positives

• Director Correll's continued beneficial ownership of company stock aligns his interests with shareholders.
• The deferred compensation plan demonstrates a structured approach to executive remuneration and retention.

Future Outlook

The filing indicates that the deferred director fees, represented by restricted stock units, will be paid in NJR Common Stock in five installments beginning in January 2026, suggesting a structured long-term compensation payout schedule.

Management Comments

• Each share of restricted stock units and dividend equivalents is the economic equivalent of one share of NJR Common Stock.
• Each restricted stock unit represents a contingent right to receive one share of NJR's Common Stock plus dividend equivalents.
• The restricted stock unit award represents director fees that were deferred pursuant to the NJR Directors' Deferred Compensation Plan to be paid in NJR Common Stock in five installments beginning in January 2026.

Industry Context

This Form 4 filing reflects a routine insider transaction related to director compensation, a common practice across industries where equity-based awards are used to align director interests with long-term shareholder value. The deferral mechanism is a standard corporate governance tool for tax planning and retention.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) and deferred compensation plans for director remuneration is a widely adopted practice among publicly traded companies, including utilities and energy sector peers.
• Many companies, such as Consolidated Edison (ED) or Public Service Enterprise Group (PEG), utilize similar equity-based compensation structures to incentivize long-term performance and retain experienced board members.
• The deferral of RSU vesting, as seen with Director Correll, is a common feature in such plans, allowing directors to manage tax implications and further align their financial interests with the company's future performance.

Corporate Governance

Stakeholder Impact

• Shareholders: Director's continued equity ownership aligns interests with shareholders.

Next Steps

• Future installments of deferred director fees will be paid in NJR Common Stock in five installments beginning in January 2026.

Key Dates

Recommendation

This Form 4 filing details a routine, pre-scheduled insider transaction related to director compensation. It does not present new information that would fundamentally alter the investment thesis for New Jersey Resources Corp. The transaction reflects the operation of an existing deferred compensation plan and the director's continued equity alignment, which is generally a neutral to slightly positive signal, but not a catalyst for a 'buy' or 'sell' recommendation.

Keywords

New Jersey Resources Corp, NJR, Donald L Correll, Form 4, Insider Transaction, Restricted Stock Units, Deferred Compensation, Director Compensation, Equity Ownership