Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

NOTE 12: STOCK-BASED COMPENSATION

Under the 2014 Omnibus Incentive Plan (“2014 Plan”), as amended, which is the Company’s only equity compensation plan, we may grant stock options and other equity-based awards, including restricted stock units (“RSUs”) and performance stock units (“PSUs”), to certain employees. Awards that expire or are forfeited without delivery of shares generally become available for future issuance under the plan. As stock options are exercised, and RSUs and PSUs vest, we issue new shares of Ryerson common stock.

Each RSU and PSU consists of the right to receive one share of our common stock. RSUs also have dividend equivalent rights equal to the accrued cash dividends while grants are outstanding. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the underlying RSUs. All rights under RSUs and PSUs are generally forfeited upon employee termination.

Stock based compensation expense related to stock options, RSUs, and PSUs was $3.9 million and $3.1 million for the six months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, 1,000 and zero stock options were exercised, respectively.

A summary of the status of our unvested RSUs and PSUs as of June 30, 2022 and changes during the six months then ended is as follows:

	Shares			Weighted Average Grant Date Fair Value Per Unit
	(In thousands)
Restricted Stock Units
Unvested at January 1, 2022		317		$	12.00
Granted		195			34.72
Vested		(155	)		10.56
Forfeited		(1	)		20.36
Unvested at June 30, 2022		356		$	25.02
Performance Stock Units
Unvested at January 1, 2022		684		$	10.62
Granted		277			35.02
Vested		(215	)		8.56
Forfeited		(3	)		15.94
Unvested at June 30, 2022		743		$	20.29
Shares reserved for future grants		959

The fair value of the 2022 RSUs and PSUs granted was $35.02 per share, determined by the closing price of our common stock on the grant date. The Company’s RSU awards vest in three separate and equal tranches over a three-year period. PSUs cliff vest on the third anniversary of the grant date, subject to achieving market or performance conditions. Each tranche vests annually on March 31, following the date of grant.

In the six months ended June 30, 2022 and 2021, we made payments of $2.7 million and zero, respectively, to tax authorities on our employees’ behalf for shares withheld related to net share settlements. Withholding related to this remittance is reflected in the

Stock-based compensation expense, net caption of our consolidated statements of stockholder’s equity.