Stock-Based Compensation Plans

6 Months Ended

Jul. 01, 2023

Share-Based Payment Arrangement [Abstract]

The Stock Incentive Plans, which consists of the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates and the 2018 Stock Incentive Plan for Non-Employee Directors of Resideo Technologies, Inc., provides for the grant of stock options, stock appreciation rights, restricted stock units, restricted stock, and other stock-based awards.

During the second quarter of 2023, the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates was further amended to increase the number of shares of our common stock available for issuance by 3.5 million shares for an aggregate of 19.5 million shares with no more than 7.5 million shares being available for grant in the form of stock options.

A summary of awards granted as part of our annual long-term compensation follows:


	Six Months Ended July 1, 2023			Six Months Ended July 2, 2022
	Number of Stock Units Granted	Weighted average grant date fair value per share		Number of Stock Units Granted	Weighted average grant date fair value per share
Performance Stock Units (“PSUs”)	553,071	$	29.89	672,453	$	36.04
Restricted Stock Units (“RSUs”)	1,481,793	$	19.01	1,035,043	$	24.54

Annual RSU awards to our key employees generally have a three-year service or performance period. RSU awards to our non-employee directors have a one-year service period. The fair value is determined at the grant date. PSUs granted in 2023 were issued with the shares awarded per unit being based on the difference in performance between the total stockholders’ return of our common stock against that of the S&P 600 Industrials Index. PSUs granted prior to 2023 were issued with the shares awarded per unit being based on the difference in performance between the total stockholders’ return of our common stock against that of the S&P 400 Industrials Index.

Stock-based compensation expense, net of tax was $12 million and $24 million for the three and six months ended July 1, 2023, respectively. For the three and six months ended July 2, 2022, stock-based compensation expense, net of tax was $10 million and $21 million, respectively.