Form 4: NiSource Director Eric L. Butler Reports Acquisition of Common Stock

Director Eric L. Butler reports acquisition of 6,042 shares of NiSource Inc. common stock through restricted stock units (RSUs) as part of annual compensation.

Summary

• On May 13, 2024, Eric L. Butler, a director of NiSource Inc., acquired 6,042 shares of common stock.
• The acquisition was in the form of restricted stock units (RSUs) granted as part of the non-employee director's annual compensation.
• The RSUs vest in full on the first anniversary of the grant date, subject to certain acceleration conditions.
• Each RSU represents a contingent right to receive one share of NiSource's common stock upon vesting, according to the company's 2020 Omnibus Plan.
• Following the transaction, Butler beneficially owns 59,018.142 shares of NiSource common stock, including RSUs received pursuant to dividend equivalent provisions.
• The price of the stock at the time of the transaction was $28.8 per share.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard transaction of a director receiving stock compensation, which is generally viewed as a positive alignment of interests.

Positives

• The acquisition of shares by a director can be seen as a positive sign, indicating confidence in the company's future prospects.
• The RSUs are part of the director's annual compensation, aligning their interests with the long-term performance of the company.

Future Outlook

The RSUs vest in full on the first anniversary of the grant date, subject to certain acceleration conditions, indicating a future event tied to continued service or other conditions.

Industry Context

Directors receiving stock-based compensation is a common practice in publicly traded companies to align management's interests with those of shareholders. This filing reflects standard compensation practices.

Comparison to Industry Standards

• Stock grants to board members are a common practice across the industry.
• Companies like Duke Energy (DUK) and Exelon (EXC) also use stock-based compensation for their directors.
• The vesting schedules and terms are generally comparable to industry norms, often tied to continued service.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's performance.

Key Dates