Form 4: NiSource CEO Yates Acquires 43,658 RSUs

NiSource Inc.'s Director, President & CEO, Lloyd M. Yates, acquired 43,658 Restricted Stock Units, aligning executive interests with shareholders.

Summary

• Lloyd M. Yates, Director and President & CEO of NiSource Inc. (NI), acquired 43,658 Restricted Stock Units (RSUs).
• The transaction date for this acquisition was January 22, 2026.
• Each RSU represents a contingent right to receive one share of the company's common stock.
• The RSUs were granted pursuant to the NiSource Inc. 2020 Omnibus Incentive Plan.
• The RSUs will 100% vest on February 28, 2029, contingent upon Mr. Yates' continuous employment with the company through that date.
• The implied value per RSU at the time of acquisition was $43.52.
• Following this transaction, Mr. Yates beneficially owns 395,949.938 shares, which includes shares acquired through the NiSource Inc. Employee Stock Purchase Plan and dividend equivalent RSUs from 2020 and 2021 awards.

Sentiment

Score: 6

Explanation: The filing reports a routine equity award grant to a key executive, which is generally viewed as a neutral to slightly positive event as it aligns management interests with shareholders, without indicating any immediate operational or financial performance changes.

Positives

• The acquisition of Restricted Stock Units by a key executive like the President & CEO demonstrates continued commitment and aligns management's financial interests with those of shareholders.
• The grant is part of a structured incentive plan (NiSource Inc. 2020 Omnibus Incentive Plan), indicating a formal approach to executive compensation tied to long-term performance and retention.

Risks

• The RSUs are subject to forfeiture conditions, specifically requiring continuous employment until February 28, 2029, meaning the executive will not receive the shares if employment ceases before this date.
• The ultimate value of the RSUs upon vesting is dependent on the future market price of NiSource Inc. common stock, exposing the executive to market risk.

Future Outlook

The vesting schedule for the Restricted Stock Units, extending to February 28, 2029, indicates an expectation of continued employment for the President & CEO, Lloyd M. Yates, and aligns his long-term incentives with the company's future performance.

Industry Context

The grant of Restricted Stock Units is a common form of executive compensation in the utility sector and broader public markets, designed to incentivize long-term performance and retain key leadership by aligning their interests with shareholder value creation.

Comparison to Industry Standards

• NA

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of RSUs to the CEO aligns his long-term financial interests with those of shareholders, potentially incentivizing decisions that enhance shareholder value.
• Employees: The continuous employment condition for vesting emphasizes the importance of executive retention and stability within the company.

Next Steps

• The Restricted Stock Units will vest on February 28, 2029, provided the reporting person remains continuously employed by NiSource Inc.

Key Dates

Recommendation

The filing reports a routine equity award grant to a key executive, which aligns management interests with shareholders but does not provide new information to alter a fundamental investment recommendation. It is a standard compensation event rather than an indicator of significant operational or financial shifts.

Keywords

NiSource, NI, Form 4, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, Equity Award, Corporate Governance, Utility Sector