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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The following costs related to the Company’s stock-based compensation plan are included in the unaudited consolidated statements of income:
 Three months ended June 30,Six months ended June 30,
 2022202120222021
Cost of revenues$3,131 $1,854 $5,772 $3,390 
General and administrative expenses5,305 4,608 9,700 7,906 
Selling and marketing expenses4,904 3,608 9,092 6,606 
Total$13,340 $10,070 $24,564 $17,902 
Income tax benefit related to share-based compensation, including excess tax benefits$3,216 $2,074 $6,022 $4,432 
As of June 30, 2022, the Company had 1,250,148 shares available for grant under the 2018 Omnibus Incentive Plan.

Stock Options

Stock option activity under the Company’s stock-based compensation plans is shown below:
Number of
Options		Weighted-Average
Exercise
Price		Aggregate
Intrinsic
Value		Weighted-Average
Remaining
Contractual
Life (Years)
Outstanding at December 31, 20213,093 $27.62 $362 2.0
  Granted— — — — 
  Exercised— — — — 
  Forfeited— — — — 
Outstanding at June 30, 20223,093 $27.62 $370 1.5
Vested and exercisable at June 30, 2022
3,093 $27.62 $370 1.5
Share Matching Program
Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company established a share matching program (“SMP”) for executive officers and other specified employees. Under the SMP, the Company agreed to issue a number of restricted stock units equal to the number of newly acquired shares of the Company's common stock. For purposes of the match, “newly acquired shares” includes the employee’s open market purchase of the common stock and crediting of equity awards vesting under any existing stock award plan of the Company as having been purchased by such employees, in an amount between $100 to $500 per such employee.
The matching restricted stock units granted under the SMP will vest in two installments, with one-third to vest on the second anniversary of the grant date and the remaining two-thirds to vest on the third anniversary of the grant date; the newly acquired shares for which the matching restricted stock units were granted must also be held by the employee until such vesting dates. The Company’s underlying common stock issued pursuant to the vesting of the matching restricted stock units will not be marketable or transferable for a period of two years following the vesting date. Certain forfeiture and other conditions apply.
During the six months ended June 30, 2022, the Company granted 52,636 matching restricted stock units under the SMP.
Restricted Stock Units
Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:
 Restricted Stock Units (Others)Restricted Stock Units (SMP)
 NumberWeighted-Average
Fair Value		NumberWeighted-Average
Fair Value
Outstanding at December 31, 2021*982,187 $81.61 — $— 
  Granted349,748 120.49 52,636 124.76 
  Vested(298,830)73.89 — — 
  Forfeited(35,723)95.11 — — 
Outstanding at June 30, 2022*997,382 $97.08 52,636 $124.76 

* As of June 30, 2022 and December 31, 2021 restricted stock units vested for which the underlying common stock is yet to be issued are 174,490 and 162,481 respectively.
As of June 30, 2022, unrecognized compensation cost of $85,851 is expected to be expensed over a weighted average period of 2.7 years.
Performance Based Stock Awards

Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. During the six months ended June 30, 2022, the Company granted 40% of each award recipient’s equity grants in the form of PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for a three year period. The remaining 60% of each award recipient’s equity grants are PRSUs that are based on a market condition that is contingent on the Company’s meeting the total shareholder return relative to a group of peer companies specified under the program measured over a three-year performance period. However, the features of the equity incentive compensation program are subject to change by the Compensation Committee of our Board of Directors. The award recipient may earn up to two hundred percent (200%) of the PRSUs granted based on the actual achievement of targets.

Performance restricted stock unit activity under the Company’s stock plans is shown below:
 Revenue Based PRSUsMarket Condition Based PRSUs
 NumberWeighted Average
Fair Value		NumberWeighted Average
Fair Value
Outstanding at December 31, 202158,864 $78.29 172,042 $113.74 
Granted52,702 119.98 79,001 155.67 
Vested— — — — 
Forfeited(352)119.98 (528)155.67 
Outstanding at June 30, 2022111,214 $97.91 250,515 $126.88 
As of June 30, 2022, unrecognized compensation cost of $29,712 is expected to be expensed over a weighted average period of 2.2 years.
The impact of COVID-19 on the economic environment is uncertain and has caused variability in the estimation of number of performance based restricted stock units that will eventually vest and the related compensation cost to be recognized in the unaudited consolidated statements of income.
Employee Stock Purchase Plan

On June 21, 2022, at the annual meeting of stockholders of the Company, the Company’s stockholders approved the ExlService Holdings, Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP was approved, subject to stockholder approval, by the board of directors of the Company on April 13, 2022.

The 2022 ESPP allows eligible employees to purchase the Company’s shares of common stock through payroll deductions at a pre-specified discount to the lower of closing price of the Company’s common shares on the date of offering or the last business day of each purchase interval. The dollar amount of shares of common stock that can be purchased under the 2022 ESPP must not exceed 15% of the participating employee’s compensation during the offering period, subject to a cap of $25 per employee per calendar year. The first offering period under the 2022 ESPP is expected to occur in the fourth quarter of 2022. The Company has registered 800,000 shares of common stock to be reserved for issuance over the term of the 2022 ESPP.