Form 4: Public Service Enterprise Group EVP Acquires Phantom Stock Units

Grace H Park, EVP and General Counsel of Public Service Enterprise Group, reports acquisition of phantom stock units under the company's Equity Deferral Plan.

Summary

• Grace H Park, an Executive Vice President and General Counsel at Public Service Enterprise Group Inc. (PEG), filed a Form 4 on February 12, 2025.
• The filing reports a transaction on February 11, 2025, where Ms. Park acquired 5,014 phantom stock units.
• These units are related to a Long-Term Incentive Plan (LTIP) Restricted Stock Unit Grant and the Equity Deferral Plan.
• The phantom stock converts into common stock on a one-for-one basis upon vesting in three annual installments, starting February 11, 2026.
• The second tranche will vest on February 11, 2027 and third tranche will vest on February 11, 2028.
• The price of the derivative security is $0.0000.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a standard executive compensation practice that aligns management interests with shareholders, suggesting confidence in the company's future.

Positives

• The acquisition of phantom stock units aligns the executive's interests with those of the shareholders, incentivizing long-term performance.
• The vesting schedule encourages continued service and commitment to the company's success.

Future Outlook

The phantom stock units will vest in three annual installments starting February 11, 2026, incentivizing the executive's long-term performance.

Industry Context

Executive compensation packages often include stock-based awards to align management's interests with shareholder value. Phantom stock is a common tool for deferred compensation.

Comparison to Industry Standards

• Utilities and energy companies commonly use long-term incentive plans (LTIPs) that include restricted stock units and phantom stock to retain and motivate key executives.
• Vesting schedules of three years are typical in these industries to ensure continued service and commitment to long-term strategic goals.
• Companies like NextEra Energy (NEE) and Duke Energy (DUK) also utilize similar equity-based compensation plans for their executives.

Stakeholder Impact

• The acquisition of phantom stock units can positively impact shareholders by aligning executive incentives with long-term company performance.
• Employees may view this as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

Form 4, insider trading, phantom stock, LTIP, Equity Deferral Plan, Public Service Enterprise Group, PEG, Grace H Park, executive compensation