Stock-Based Compensation

6 Months Ended

Dec. 31, 2023

(10) Stock-Based Compensation

Phantom Stock Option Plan and Long-term Incentive Plan

The Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long-term Incentive Plan (the “Plan”) was adopted effective July 1, 2011, to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company’s shareholders. The Plan is intended to provide benefits to employees and directors of the Company or any subsidiary as designated by the Compensation Committee of the Board of Directors of the Company (“Committee”). A phantom stock option represents the right to receive a cash payment on the date the award vests. The Plan is more fully described in Note 10 of the consolidated financial statements for the year ended June 30, 2023. All share and per share data has been retroactively adjusted in all periods presented to reflect the 2-for-1 stock split, which was paid on March 23, 2023, as if the new share options had been granted at the same time as the original share options.

A summary of the Company’s phantom stock option activity and related information for the Plan for the three and six months ended December 31, 2023 and 2022 were as follows:

	Three months ended December 31,						Six months ended December 31,
	2023			2022			2023			2022
Number of options outstanding, beginning of period		3,207,935			3,572,240			2,535,840			2,959,040
Options Granted		-			-			672,095			807,200
Options Paid in Cash		(890,400	)		(957,400	)		(890,400	)		(1,151,400	)
Number of options outstanding, end of period		2,317,535			2,614,840			2,317,535			2,614,840

	Three months ended December 31,				Six months ended December 31,
(In thousands)	2023		2022		2023		2022
Cash paid out on options vested	$	4,051	$	3,594	$	4,051	$	4,104
Compensation costs recognized	$	762	$	1,026	$	1,394	$	1,994

The total liability for the Plan was $3.6 million and $6.3 million at December 31, 2023 and June 30, 2023, respectively, and is included in accrued expenses and other liabilities on the consolidated statements of financial condition.