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Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Stock-Based Compensation [Abstract]  
Schedule of Pre-tax Compensation Expense and Related Income Tax Benefit

The following table presents the Registrants' pre-tax compensation expense and related income tax benefit for the years ended December 31, 2022, 2021 and 2020 related to performance units and restricted stock units for the Registrants' employees.

 

 

OGE Energy

 

 

OG&E

 

Year Ended December 31 (In millions)

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Performance units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholder return

 

$

7.2

 

 

$

7.5

 

 

$

7.9

 

 

$

2.2

 

 

$

1.8

 

 

$

2.3

 

Earnings per share (A)

 

 

—

 

 

 

—

 

 

 

1.0

 

 

 

—

 

 

 

—

 

 

 

0.3

 

Total performance units

 

 

7.2

 

 

 

7.5

 

 

 

8.9

 

 

 

2.2

 

 

 

1.8

 

 

 

2.6

 

Restricted stock units

 

 

2.5

 

 

 

2.3

 

 

 

0.9

 

 

 

0.7

 

 

 

0.4

 

 

 

0.4

 

Total compensation expense

 

$

9.7

 

 

$

9.8

 

 

$

9.8

 

 

$

2.9

 

 

$

2.2

 

 

$

3.0

 

Income tax benefit

 

$

2.3

 

 

$

2.5

 

 

$

2.5

 

 

$

0.7

 

 

$

0.6

 

 

$

0.8

 
(A)
In 2019, the Compensation Committee of OGE Energy's Board of Directors voted to grant restricted stock units in lieu of performance units based on earnings per share. The final grants of performance units based on earnings per share vested as of December 31, 2020 and were paid out in March 2021.
Schedule of Performance Units Granted and Assumptions Used to Calculate Grant Date Fair Value of Performance Units The following table presents the number of performance units granted based on total shareholder return and the assumptions used to calculate the grant date fair value of the performance units based on total shareholder return.

 

OGE Energy

 

 

OG&E

 

 

2022

 

2021

 

2020

 

 

2022

 

2021

 

2020

 

Number of units granted

 

216,437

 

 

249,909

 

 

201,552

 

 

 

60,923

 

 

68,720

 

 

67,975

 

Fair value of units granted

$

41.10

 

$

38.14

 

$

38.03

 

 

$

41.10

 

$

38.14

 

$

38.03

 

Expected dividend yield

 

4.8

%

 

4.7

%

 

3.5

%

 

 

4.8

%

 

4.7

%

 

3.5

%

Expected price volatility

 

29.0

%

 

29.0

%

 

15.0

%

 

 

29.0

%

 

29.0

%

 

15.0

%

Risk-free interest rate

 

1.71

%

 

0.22

%

 

1.17

%

 

 

1.71

%

 

0.22

%

 

1.17

%

Expected life of units (in years)

 

2.85

 

 

2.84

 

 

2.85

 

 

 

2.85

 

 

2.85

 

 

2.85

 
Schedule of Restricted Stock Units Granted and Grant Date Fair Value The following table presents the number of restricted stock units granted and the grant date fair value.

 

 

OGE Energy

 

 

OG&E

 

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Restricted stock units granted

 

 

116,539

 

 

 

89,197

 

 

 

67,193

 

 

 

32,804

 

 

 

22,911

 

 

 

22,665

 

Fair value of restricted stock units granted

 

$

35.72

 

 

$

31.11

 

 

$

43.69

 

 

$

35.72

 

 

$

30.91

 

 

$

43.69

 
Schedule of Activity for Performance Units and Restricted Stock Units

The following tables present a summary of the activity for the Registrants' performance units and restricted stock units for the year ended December 31, 2022. The table designated as "OGE Energy" below includes the OG&E standalone activity, as OGE Energy represents consolidated results.

OGE Energy

Performance Units

 

 

Restricted Stock Units

 

(Dollars in millions)

Number
of Units

 

 

Aggregate Intrinsic Value

 

 

Number
of Shares

 

 

Aggregate Intrinsic Value

 

Units/shares outstanding at 12/31/21

 

581,252

 

 

 

 

 

 

133,671

 

 

 

 

Granted

 

216,437

 

(A)

 

 

 

 

116,539

 

 

 

 

Converted

 

(172,748

)

(B)

$

—

 

 

N/A

 

 

 

 

Vested

N/A

 

 

 

 

 

 

(47,995

)

 

$

1.9

 

Forfeited

 

(16,566

)

 

 

 

 

 

(12,732

)

 

 

 

Units/shares outstanding at 12/31/22

 

608,375

 

 

$

34.1

 

 

 

189,483

 

 

$

7.5

 

Units/shares fully vested at 12/31/22

 

161,690

 

(C)

$

3.7

 

 

N/A

 

 

N/A

 

 

OG&E

Performance Units

 

 

Restricted Stock Units

 

(Dollars in millions)

Number
of Units

 

 

Aggregate Intrinsic Value

 

 

Number
of Shares

 

 

Aggregate Intrinsic Value

 

Units/shares outstanding at 12/31/21

 

161,310

 

 

 

 

 

 

35,613

 

 

 

 

Granted

 

60,923

 

(A)

 

 

 

 

32,804

 

 

 

 

Converted

 

(48,195

)

(B)

$

—

 

 

N/A

 

 

 

 

Vested

N/A

 

 

 

 

 

 

(11,807

)

 

$

0.5

 

Forfeited

 

(4,217

)

 

 

 

 

 

(4,342

)

 

 

 

Employee migration

 

802

 

(D)

 

 

 

 

491

 

(D)

 

 

Units/shares outstanding at 12/31/22

 

170,623

 

 

$

9.6

 

 

 

52,759

 

 

$

2.1

 

Units/shares fully vested at 12/31/22

 

44,550

 

(C)

$

1.0

 

 

N/A

 

 

N/A

 
(A)
For performance units, this represents the target number of performance units granted. Actual number of performance units earned, if any, is dependent upon performance and may range from zero percent to 200 percent of the target.
(B)
These amounts represent performance units that were canceled at December 31, 2021 due to the performance metric threshold not being met.
(C)
These amounts represent performance units that vested at December 31, 2022. Actual expected amounts to be paid out in 2023 will differ based on the percentage at which the performance metric was met and are dependent upon Compensation Committee approval.
(D)
Due to certain employees transferring between OG&E and OGE Energy.
Summary of Activity for Non-vested Performance Units and Restricted Stock Units

The following tables present a summary of the activity for the Registrants' non-vested performance units and restricted stock units for the year ended December 31, 2022. The table designated as "OGE Energy" below includes the OG&E standalone activity, as OGE Energy represents consolidated results.

OGE Energy

Performance Units

 

 

Restricted Stock Units

 

 

Number
of Units

 

 

Weighted-Average
Grant Date
Fair Value

 

 

Number
of Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

Units/shares non-vested at 12/31/21

 

408,504

 

 

$

38.05

 

 

 

133,671

 

 

$

35.64

 

Granted

 

216,437

 

(A)

$

41.10

 

 

 

116,539

 

 

$

35.72

 

Vested

 

(161,690

)

 

$

38.04

 

 

 

(47,995

)

 

$

39.63

 

Forfeited

 

(16,566

)

 

$

39.45

 

 

 

(12,732

)

 

$

35.95

 

Units/shares non-vested at 12/31/22

 

446,685

 

 

$

39.53

 

 

 

189,483

 

 

$

33.75

 

 

 

OG&E

Performance Units

 

 

Restricted Stock Units

 

 

Number
of Units

 

 

Weighted-Average
Grant Date
Fair Value

 

 

Number
of Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

Units/shares non-vested at 12/31/21

 

113,115

 

 

$

38.10

 

 

 

35,613

 

 

$

35.52

 

Granted

 

60,923

 

(A)

$

41.10

 

 

 

32,804

 

 

$

35.72

 

Vested

 

(44,550

)

 

$

38.03

 

 

 

(11,807

)

 

$

39.71

 

Forfeited

 

(4,217

)

 

$

39.96

 

 

 

(4,342

)

 

$

35.93

 

Employee migration

 

802

 

(B)

$

42.18

 

 

 

491

 

(B)

$

34.83

 

Units/shares non-vested at 12/31/22

 

126,073

 

 

$

39.53

 

 

 

52,759

 

 

$

33.78

 
(A)
For performance units, this represents the target number of performance units granted. Actual number of performance units earned, if any, is dependent upon performance and may range from zero percent to 200 percent of the target.
(B)
Due to certain employees transferring between OG&E and OGE Energy.
Summary of Fair Value for Vested Performance Units and Restricted Stock Units

The following table presents a summary of the Registrants' fair value for vested performance units and restricted stock units.

 

 

OGE Energy

 

 

OG&E

 

Year Ended December 31 (In millions)

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Performance units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholder return

 

$

6.2

 

 

$

8.1

 

 

$

8.7

 

 

$

1.7

 

 

$

2.3

 

 

$

2.8

 

Earnings per share

 

$

—

 

 

$

—

 

 

$

2.5

 

 

$

—

 

 

$

—

 

 

$

0.8

 

Restricted stock units

 

$

2.1

 

 

$

2.2

 

 

$

0.1

 

 

$

0.5

 

 

$

0.5

 

 

$

0.1

 
Summary of Unrecognized Compensation Cost and Weighted-average Periods Over which Compensation Cost is Expected to be Recognized

The following table presents a summary of the Registrants' unrecognized compensation cost for non-vested performance units and restricted stock units and the weighted-average periods over which the compensation cost is expected to be recognized.

 

 

OGE Energy

 

 

OG&E

 

December 31, 2022

 

Unrecognized
Compensation Cost
(In millions)

 

 

Weighted Average
to be Recognized
(In years)

 

 

Unrecognized
Compensation Cost
(In millions)

 

 

Weighted Average
to be Recognized
(In years)

 

Performance units

 

$

7.7

 

 

 

1.66

 

 

$

2.2

 

 

 

1.65

 

Restricted stock units

 

 

3.5

 

 

 

1.76

 

 

 

0.7

 

 

 

1.77

 

Total unrecognized compensation cost

 

$

11.2

 

 

 

 

 

$

2.9