Form 4: Peabody Energy CAO Receives RSU Grant, Sells Shares for Tax

Peabody Energy's CAO and Corporate Secretary, Scott T. Jarboe, reported the acquisition of restricted stock units and the disposition of shares for tax withholding purposes.

Summary

• Scott T. Jarboe, CAO and Corporate Secretary of Peabody Energy Corp, reported transactions involving the company's common stock.
• Jarboe acquired 12,222 restricted stock units (RSUs) on January 2, 2026, with a transaction price of $0.
• These RSUs will vest in three equal annual installments on the first, second, and third anniversaries of the grant date (January 2, 2026), contingent on continued employment.
• The RSUs become fully vested upon termination due to death or disability.
• Jarboe disposed of 5,897 shares of common stock on January 2, 2026, at a price of $30.68 per share.
• This disposition was to satisfy tax withholding obligations related to the vesting of restricted stock units on January 2 and 3, 2026.
• Following these transactions, Jarboe beneficially owns 84,457 shares of common stock directly.

Sentiment

Score: 6

Explanation: The filing reports a standard executive compensation event (RSU grant) and a routine tax-related share disposition. It's neutral to slightly positive due to the executive receiving equity, aligning interests, but it's a common occurrence.

Positives

• Grant of 12,222 restricted stock units to a key executive, aligning management's interests with long-term shareholder value.

Negatives

• Disposition of 5,897 shares of common stock to cover tax withholding obligations, which is a common but non-discretionary sale.

Risks

• Vesting of restricted stock units is subject to the executive officer's continued employment, posing a forfeiture risk if employment ceases before vesting dates.

Future Outlook

The restricted stock units granted to Scott T. Jarboe are scheduled to vest in three equal annual installments on the first, second, and third anniversaries of January 2, 2026, indicating a future alignment of executive incentives with long-term company performance.

Industry Context

This Form 4 filing reflects routine executive compensation practices within the public company sector, where restricted stock units are commonly used to incentivize and retain key management personnel, aligning their interests with long-term shareholder value. The disposition of shares for tax withholding is a standard practice upon RSU vesting.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) as a component of executive compensation is a common practice across various industries, including the energy sector, for companies like Arch Resources or Alliance Resource Partners. The vesting schedule over three years is typical for long-term incentive plans, aiming to retain executives and align their performance with shareholder interests over a sustained period. The disposition of shares to cover tax obligations upon vesting is also a standard, non-discretionary event in such compensation structures.

Stakeholder Impact

• Shareholders: The grant of RSUs to a key executive aligns management's long-term interests with shareholder value creation, potentially fostering stability and performance.
• Employees (specifically Scott T. Jarboe): The RSU grant represents a significant component of executive compensation, providing a long-term incentive and retention mechanism.

Next Steps

• First installment of restricted stock units will vest on January 2, 2027.
• Second installment of restricted stock units will vest on January 2, 2028.
• Third installment of restricted stock units will vest on January 2, 2029.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the grant of restricted stock units and a subsequent tax-related share disposition. It does not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transactions are expected and align with standard corporate governance and compensation practices, thus maintaining a 'hold' recommendation based solely on this filing.

Keywords

Peabody Energy, BTU, Scott T. Jarboe, Form 4, Insider Trading, Restricted Stock Units, RSU, Executive Compensation, Stock Grant, Tax Withholding