Form 4: WEC Energy Group Director Danny L. Cunningham Reports Acquisition of Phantom Stock Units

Director Danny L. Cunningham reported acquiring phantom stock units of WEC Energy Group, Inc. through a deferral of director fees.

Summary

• On April 5, 2024, Danny L. Cunningham, a director of WEC Energy Group, Inc., acquired 436.6812 phantom stock units.
• The acquisition was a result of deferred director fees and is exempt from Section 16(b) under Rule 16b-3(d).
• These phantom stock units are accrued under the WEC Energy Group, Inc. Director's Deferred Compensation Plan (DDCP) and will be settled according to the plan's terms.
• The reporting person directly owns 15,340.9502 derivative securities following the reported transaction.
• The price of the derivative security is $80.15.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-governed company. The sentiment is neutral to slightly positive as it shows alignment of interests between management and shareholders.

Positives

• The acquisition of phantom stock units reflects continued alignment of director compensation with company performance.
• The use of a Director's Deferred Compensation Plan (DDCP) allows for tax-efficient accumulation of company stock.

Future Outlook

The phantom stock units will be settled in accordance with the terms of the WEC Energy Group, Inc. Director's Deferred Compensation Plan (DDCP).

Industry Context

This filing is a routine disclosure of insider transactions, common among publicly traded companies to ensure transparency and compliance with SEC regulations. Directors often receive stock-based compensation to align their interests with shareholders.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies, including utilities like NextEra Energy and Duke Energy.
• The use of phantom stock units is a typical method to provide equity-based compensation without immediate dilution of existing shares, similar to practices at Southern Company and Exelon.
• The reporting requirements under Section 16(a) of the Securities Exchange Act are standard across all US-listed companies, ensuring transparency of insider transactions.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.
• The use of deferred compensation plans can be seen as a positive for employees as it reflects a commitment to long-term value creation.

Key Dates