Form 4: WEC Energy Group Director Acquires Phantom Stock Units Through Deferred Compensation Plan

WEC Energy Group Director Mary Ellen Stanek acquired 347.7932 phantom stock units on July 8, 2025, as part of a deferred compensation plan, increasing her total beneficial ownership to 49,579.5041 units.

Summary

• Mary Ellen Stanek, a Director of WEC Energy Group, Inc. (WEC), acquired 347.7932 phantom stock units on July 8, 2025.
• These units were acquired at a price of $103.32 per unit.
• The acquisition resulted from the deferral of director fees and is exempt from Section 16(b) pursuant to Rule 16b-3(d).
• The phantom stock units were accrued under the WEC Energy Group, Inc. Director's Deferred Compensation Plan (DDCP).
• Following this transaction, Mary Ellen Stanek beneficially owns a total of 49,579.5041 phantom stock units.
• This total includes units accrued through a dividend reinvestment feature of the DDCP, which are exempt from Section 16 under Rule 16a-11.

Sentiment

Score: 7

Explanation: The acquisition of phantom stock units by a director through a deferred compensation plan is a routine and positive indicator of ongoing director compensation and alignment with shareholder interests, without implying any extraordinary events.

Positives

• Director Mary Ellen Stanek increased her beneficial ownership in WEC Energy Group by acquiring 347.7932 phantom stock units, aligning her interests further with shareholders.
• The acquisition was part of a deferred compensation plan, indicating a structured and routine method of director remuneration.
• The transaction is exempt from certain insider trading rules (Rule 16b-3(d) and Rule 16a-11), indicating compliance with regulatory frameworks for compensation plans.

Future Outlook

The document does not contain any forward-looking statements or guidance.

Industry Context

The acquisition of phantom stock units by a director through a deferred compensation plan is a common and standard practice for executive and director compensation across various industries, including the energy and utility sector. This mechanism is designed to align the interests of company leadership with long-term shareholder value.

Comparison to Industry Standards

• The use of phantom stock units as a component of director compensation, settled through a deferred compensation plan, is a widely accepted practice in corporate governance, comparable to similar plans at other publicly traded utility and energy companies.
• The exemption of the transaction under SEC Rules 16b-3(d) and 16a-11 indicates adherence to standard regulatory compliance for such compensation arrangements, consistent with practices observed in companies like Duke Energy, NextEra Energy, or Southern Company, which also utilize deferred compensation and equity-linked incentives for their directors.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by Director Mary Ellen Stanek from WEC Energy Group constitutes a related party transaction, as it involves a company insider and the company itself. This transaction is part of the established Director's Deferred Compensation Plan (DDCP), a standard mechanism for director remuneration.

Stakeholder Impact

• **Shareholders:** The acquisition of phantom stock units by a director aligns their financial interests with those of shareholders, as the value of these units is tied to the company's stock performance.
• **Director (Mary Ellen Stanek):** The transaction represents a component of her compensation, allowing for tax-deferred accumulation of equity-linked units.

Key Dates

Keywords

WEC Energy Group, WEC, Phantom Stock Units, Director Compensation, SEC Form 4, Insider Transaction, Deferred Compensation, Equity Acquisition