Stock Plans

12 Months Ended

Dec. 31, 2024

Stock Plans

Stock Plans

7. Stock Plans

On May 9, 2024, the Company’s shareholders approved the Company’s 2024 Omnibus Incentive Plan (the “2024 Plan”). The 2024 Plan replaces the Company’s previous 2016 Omnibus Incentive Plan (the “2016 Plan”) and no new awards will be made under the 2016 Plan; however, awards granted under the 2016 Plan will continue to be governed by the 2016 Plan. The 2024 Plan permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other share-based awards to its directors, employees and consultants. At December 31, 2024, approximately 1.8 million shares of common stock remained available for issuance pursuant to future grants of awards under the 2024 Plan.

Restricted stock units granted to employees vest one to four years from the date of grant, subject to any applicable performance targets, and restricted stock units granted to non-employee directors vest one year from the date of grant, unless the recipient chooses to defer the vesting for a period of time. Depending on the type of award, the fair value of restricted stock units is determined either based on the market price of the Company’s stock at the date of grant or based on a Monte-Carlo valuation. Forfeitures are estimated based on historical experience. The Company generally records compensation expense equal to the fair value of each restricted stock unit granted over the vesting period. The weighted-average grant-date fair value of restricted stock units granted during 2024, 2023, and 2022 was $113.10, $85.25, and $82.66, respectively.

A summary of the status of the Company’s restricted stock units as of December 31, 2024 and changes during the year ended December 31, 2024, is presented below:

		Weighted
		Average
		Grant-Date
Restricted Stock Units	Shares	Fair Value
Nonvested shares at January 1, 2024	601,855	$	77.59
Granted	171,959		113.10
Vested	(297,490)		76.18
Canceled	(27,859)		97.13
Nonvested shares at December 31, 2024	448,465		91.04

The fair value of all restricted stock units that vested during 2024, 2023 and 2022 was $34.4 million, $14.9 million and $12.9 million, respectively.

At December 31, 2024, there was $22.4 million of total unrecognized compensation cost related to restricted stock units granted under the Company’s equity incentive plans. That cost is expected to be recognized over a weighted-average period of 2.3 years.

The compensation cost that has been charged against pre-tax income for all of the Company’s stock-based compensation plans was $13.9 million, $15.4 million, and $15.0 million for 2024, 2023, and 2022, respectively. The total income tax benefit recognized in the accompanying consolidated statements of operations for all of the Company’s stock-based employee compensation plans was $3.2 million, $3.5 million, and $3.5 million for 2024, 2023, and 2022, respectively.

The actual tax benefit realized from exercise, vesting or cancellation of the stock-based employee compensation arrangements during 2024, 2023, and 2022 totaled $3.2 million, $0, and $0.5 million, respectively, and is reflected as an adjustment to (provision) benefit for income taxes in the accompanying consolidated statements of operations.