8-KLeadership ChangesShareholder MattersExhibits & Filings

FIRSTENERGY CORP 8-K Report, Executive Changes (May 20, 2020)

Filed May 20, 2020For Securities:FE

Summary

This Form 8-K filing by FirstEnergy Corp. (FE) on May 20, 2020, primarily announces significant leadership changes and the approval of a new incentive compensation plan. Steven E. Strah has been appointed President, and K. Jon Taylor has been appointed Senior Vice President and Chief Financial Officer, effective May 24, 2020. While Charles E. Jones remains CEO, these appointments suggest a restructuring of executive responsibilities and potential succession planning. Both Mr. Strah and Mr. Taylor received notable increases in base salary and incentive award targets, reflecting their expanded roles. The filing also details the shareholder approval of the FirstEnergy Corp. 2020 Incentive Compensation Plan at the Annual Meeting held on May 19, 2020. This new plan allows for a broad range of equity and cash-based compensation to officers, employees, and non-employee directors, with a pool of over 12.7 million shares available. The approval of this plan is a key development for future executive and employee compensation strategies.

Key Highlights

  • 1Steven E. Strah appointed President, effective May 24, 2020.
  • 2K. Jon Taylor appointed Senior Vice President and Chief Financial Officer, effective May 24, 2020.
  • 3CEO Charles E. Jones will continue to serve in his role.
  • 4Significant increases in base salary and incentive award targets for both newly appointed President and CFO.
  • 5Shareholders approved the FirstEnergy Corp. 2020 Incentive Compensation Plan.
  • 6The 2020 Incentive Compensation Plan makes over 12.7 million shares available for awards.
  • 7All incumbent directors were re-elected to the Board of Directors.
  • 8PricewaterhouseCoopers LLP ratified as the independent auditor for fiscal year 2020.

Frequently Asked Questions

The most significant leadership changes are the appointments of Steven E. Strah as President and K. Jon Taylor as Senior Vice President and Chief Financial Officer, both effective May 24, 2020. Current CEO Charles E. Jones will continue in his role.

Both Steven E. Strah and K. Jon Taylor will receive increased base salaries. Mr. Strah's salary increases by 18.5% to $800,000, and Mr. Taylor's increases by 48.1% to $600,000. Additionally, their short-term and long-term incentive award targets have been increased.

The shareholder approval of the 2020 Incentive Compensation Plan allows the company to continue offering equity and incentive-based compensation to its employees, officers, and non-employee directors. It provides a framework for future compensation awards, with over 12.7 million shares available for grants.

The filing notes that Kenneth A. Strah, brother of Steven E. Strah, is employed by the company as Director of Customer Contact Centers. His compensation is stated to be consistent with company programs, and there is no direct reporting relationship between the two brothers. The filing does not indicate any other direct related-party concerns.