Form 4: Southern Company Executive James Y. Kerr, II Reports Stock Transactions Following Vesting of Performance-Based Units

James Y. Kerr, II, Chairman, President & CEO of GAS at Southern Company, reports acquisition and disposal of company stock related to vesting of performance-based restricted stock units and shares, as well as shares withheld for tax obligations.

Summary

• On February 5, 2025, James Y. Kerr, II, Chairman, President & CEO of GAS at Southern Company, reported transactions involving Southern Company common stock.
• These transactions include the acquisition of 3,295 shares upon the vesting of performance restricted stock units granted on January 31, 2024.
• Additionally, 37,317 shares were acquired upon the vesting of performance share units under the Company's Performance Share Program for the 2022-2024 award.
• A total of 1,472 and 16,659 shares were withheld to satisfy tax obligations at a price of $83.87 per share.
• Following these transactions, Kerr directly owns 169,348 shares and indirectly owns 32,802.4212 shares through a 401(k).
• Kerr also holds 6,358 Southern Co Restricted Stock Units.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine disclosure of stock transactions related to executive compensation. The vesting of performance-based units suggests targets were met, which is mildly positive, but the tax-related sales are neutral.

Positives

• The vesting of performance-based units suggests that performance targets were met, which could be viewed positively.

Negatives

• The sale of shares to cover tax obligations could be seen as a slight negative, although it's a common practice.

Risks

• There are no specific risks mentioned in this document, as it primarily details stock transactions.

Future Outlook

The remaining performance restricted stock units will vest in two tranches, one in 2026 and the other in 2027.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It provides transparency into the holdings and transactions of key company personnel.

Comparison to Industry Standards

• Executive compensation packages including restricted stock units and performance share programs are standard practice among large publicly traded companies, including utilities like Duke Energy (DUK) and NextEra Energy (NEE).
• The vesting schedules and performance metrics are typically aligned with long-term strategic goals and shareholder value creation.
• The level of stock ownership by executives is often compared to industry peers to assess alignment with shareholder interests.

Stakeholder Impact

• The vesting of performance-based units can positively impact shareholders if it reflects the achievement of company goals.
• Employees may be motivated by the performance-based compensation structure.

Next Steps

• The remaining performance restricted stock units will vest in 2026 and 2027.

Key Dates