Form 4: Peabody Energy CAO Scott T. Jarboe Reports Stock Transactions

Peabody Energy's CAO and Corporate Secretary, Scott T. Jarboe, reported the acquisition and disposal of company stock related to the vesting of restricted stock units.

Summary

• Scott T. Jarboe, CAO and Corporate Secretary of Peabody Energy, filed a Form 4 detailing changes in his beneficial ownership of company stock.
• On January 2, 2025, 2,019 shares were withheld to cover tax obligations related to vesting restricted stock units at a price of $20.86 per share.
• Also on January 2, 2025, 16,778 restricted stock units (RSUs) were granted to Mr. Jarboe at no cost.
• On January 3, 2025, an additional 1,498 shares were withheld for tax obligations at a price of $20.23 per share.
• The RSUs vest in three equal annual installments starting on January 2, 2026, contingent on continued employment, and fully vest upon death or disability.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative news. The granting of RSUs is a positive sign of alignment with company performance.

Positives

• The granting of 16,778 restricted stock units to Mr. Jarboe indicates a long-term incentive and alignment of interests with the company's performance.
• The vesting schedule of the RSUs encourages continued employment.

Risks

• The value of the restricted stock units is subject to the market price of Peabody Energy stock, which can fluctuate.
• The vesting of the RSUs is contingent on continued employment, which introduces a risk of forfeiture if employment is terminated before vesting.

Future Outlook

The restricted stock units will vest in three equal annual installments starting on January 2, 2026, subject to continued employment.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common practice in publicly traded companies. It provides transparency into the compensation structure and alignment of interests between management and shareholders.

Comparison to Industry Standards

• The use of restricted stock units as part of executive compensation is a common practice among publicly traded companies, including those in the energy sector.
• Companies like Arch Resources and Consol Energy also use similar equity-based compensation plans for their executives.
• The vesting schedule of three years is also a typical timeframe for such grants, aligning with industry standards for long-term incentives.

Stakeholder Impact

• Shareholders may view the granting of restricted stock units as a positive sign of management's commitment to the company's long-term success.
• Employees may see this as a standard part of executive compensation.

Next Steps

• The restricted stock units will continue to vest annually on the anniversary of the grant date, subject to continued employment.

Key Dates

Keywords

Peabody Energy, stock transactions, restricted stock units, Form 4, insider trading, vesting, tax withholding, equity compensation