Form 4: NiSource Director McAvoy Receives Restricted Stock Units as Part of Annual Compensation

Director John McAvoy acquired 4,541 shares of NiSource common stock in the form of restricted stock units (RSUs) as part of his annual compensation.

Summary

• On May 12, 2025, John McAvoy, a director of NiSource Inc., acquired 4,541 shares of common stock in the form of restricted stock units (RSUs).
• The RSUs were granted as part of the non-employee director's annual compensation.
• The grant price was $38.32 per share.
• 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, McAvoy beneficially owns 11,687.55 shares of NiSource common stock, which includes RSUs received pursuant to dividend equivalent provisions.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The grant of RSUs can be seen as a positive sign, aligning director interests with shareholders.

Positives

• The grant of RSUs aligns the director's interests with those of the shareholders, incentivizing him to work towards the company's success.
• The vesting schedule encourages long-term commitment from the director.

Future Outlook

The RSUs vest in full on the first anniversary of the grant date, subject to certain acceleration conditions.

Industry Context

Director compensation in the form of stock and options is a common practice in publicly traded companies to align the interests of management with those of shareholders. The 2020 Omnibus Plan is a standard equity compensation plan.

Comparison to Industry Standards

• Companies like Duke Energy (DUK) and Exelon (EXC) also utilize equity-based compensation for their directors.
• Director compensation packages typically include a mix of cash retainers and equity grants.
• The specific amount and vesting schedules vary based on company size, performance, and industry practices.

Stakeholder Impact

• Shareholders: The grant of RSUs aligns the director's interests with those of the shareholders.
• Employees: The grant of RSUs does not have a direct impact on employees.

Key Dates

Keywords

NiSource, Director, John McAvoy, Restricted Stock Units, RSUs, Compensation, Beneficial Ownership, Dividend Equivalent, 2020 Omnibus Plan