Summary
American Electric Power Company, Inc. (AEP) announced on December 18, 2025, a special equity award granted to its Chair, President, and CEO, William J. Fehrman. This award is designed as a retention strategy and to further align executive compensation with the company's performance. The initiative underscores AEP's commitment to retaining key leadership talent and incentivizing long-term value creation for shareholders. The special award consists of two components: $10 million in performance shares and $5 million in restricted stock units, both vesting on December 31, 2030. The performance shares are contingent on Mr. Fehrman's continued employment through the vesting date and are tied to AEP's relative total shareholder return (rTSR) compared to a peer group over five years. The vesting of the restricted stock units is solely dependent on continued employment.
Key Highlights
- 1AEP granted a special equity award to CEO William J. Fehrman as a retention and performance alignment strategy.
- 2The award includes $10 million in performance shares and $5 million in restricted stock units.
- 3Both components of the award have a vesting date of December 31, 2030.
- 4Performance shares are tied to AEP's relative total shareholder return (rTSR) against a peer group over a five-year period.
- 5The performance metric for the shares ranges from 0% to 200% based on rTSR percentile ranking.
- 6Vesting for both awards is contingent upon Mr. Fehrman's continuous employment with AEP through December 31, 2030.