Form 4: UGI Corp Director Mario Longhi Receives Stock and Performance Units Following Interim CEO Role

Mario Longhi, a director at UGI Corp, received performance and stock units on November 1, 2024, in recognition of his service as Interim President and CEO.

Summary

• Mario Longhi, a director of UGI Corp, received grants of performance units and stock units on November 1, 2024.
• These grants were made under the UGI Corporation 2021 Incentive Award Plan in recognition of his service as the Company's Interim President and Chief Executive Officer.
• Longhi received 64,823 performance units, each representing the right to receive a share of UGI Common Stock if specified performance goals and other conditions are met, expiring on November 1, 2027.
• He also received 42,626 time-restricted stock units with dividend equivalents, each representing the right to receive a share of UGI Common Stock.
• 50% of the stock units vest on the second anniversary of the grant date, and the remaining 50% vest on the third anniversary.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The grants of performance and stock units align Longhi's interests with the company's performance and shareholder value.
• The vesting schedule of the stock units encourages long-term commitment.

Risks

• The value of the performance units is contingent on the achievement of specified performance goals, which may not be met.
• The value of the stock units is subject to market fluctuations in UGI Common Stock.

Future Outlook

The performance units are contingent on meeting specified performance goals, influencing future compensation based on company performance.

Industry Context

Granting stock and performance units is a common practice in executive compensation to align management's interests with those of shareholders and incentivize performance.

Comparison to Industry Standards

• UGI's incentive plan is similar to those of other publicly traded utilities and energy companies, such as National Fuel Gas Company and ONE Gas, Inc., which also use a mix of stock options, restricted stock, and performance-based awards to compensate executives.
• The vesting schedules and performance metrics are likely benchmarked against industry peers to ensure competitiveness and alignment with shareholder value creation.

Stakeholder Impact

• Shareholders may view the grants positively as they align management's interests with company performance.
• Employees may see this as a positive sign of recognizing contributions to the company.

Key Dates