Form 4: UGI Corp Executive Kathleen Shea-Ballay Reports Acquisition of Performance and Stock Units

Kathleen Shea-Ballay, GC and Chief Legal Officer of UGI Corp, reports the acquisition of performance units and stock units under the company's 2021 Incentive Award Plan.

Summary

• On January 1, 2025, Kathleen Shea-Ballay, GC and Chief Legal Officer of UGI Corp, reported the acquisition of performance units and stock units.
• She was granted 21,467 performance units under the UGI Corporation 2021 Incentive Award Plan, each representing the right to receive a share of UGI Common Stock if specified performance goals and other conditions are met.
• Additionally, she was granted 14,170 stock units with dividend equivalents under the same plan, 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 sentiment is neutral to positive. The grant of performance and stock units is a standard practice and aligns management's interests with shareholders. The vesting schedule promotes long-term focus.

Positives

• The grant of performance and stock units aligns the executive's interests with those of the shareholders, incentivizing performance and long-term value creation.

Future Outlook

The performance and stock units are part of UGI Corporation's 2021 Incentive Award Plan, suggesting a continued focus on incentivizing executives through equity-based compensation.

Industry Context

Equity-based compensation is a common practice in publicly traded companies to align executive compensation with shareholder value. The specific terms of the performance units (performance goals) would be relevant to assess the strength of the incentive.

Comparison to Industry Standards

• UGI Corp's use of performance-based equity awards aligns with industry standards for incentivizing executive performance.
• Companies like National Fuel Gas Company and South Jersey Industries, also in the utilities sector, often use similar long-term incentive plans.
• The vesting schedules (2 and 3 years) are typical for stock unit grants, promoting retention and long-term focus.

Stakeholder Impact

• Shareholders: The grant of performance and stock units aligns executive compensation with company performance, potentially benefiting shareholders.
• Employees: The incentive award plan may extend to other employees, motivating performance across the organization.

Key Dates