Share-based compensation

Sirius Group's compensation plans include grants for various types of share-based and non-share-based compensation awards to key employees and directors of Sirius Group. As of March 31, 2020, Sirius Group's share-based compensation awards consist of performance shares units ("PSUs"), restricted share units ("RSUs"), restricted stock and options.

Sirius Group recognized $1.2 million and $0.2 million of compensation expense under the share-based awards during the three months ended March 31, 2020 and 2019, respectively. Sirius Group paid $0.3 million and $3.3 million to employees for share-based awards during the three months ended March 31, 2020 and 2019, respectively.

The following tables present unrecognized compensation cost associated with unvested awards and weighted average period over which it is expected to be recognized:



(Millions)	March 31, 2020
	PSUs - IPO Incentive Awards		PSUs - 2019 Long Term Incentive (LTI)		RSUs		Stock Options		2018 Long Term Incentive Plan (LTIP)
Unrecognized compensation cost related to unvested awards	$	2.6	$	1.1	$	9.8	$	1.8	$	0.2
Weighted average recognition period (years)	1.8 years		1.8 years		1.7 years		1.9 years		0.8 years

As of March 31, 2019, there were $34.3 million of unrecognized share-based compensation costs, which are expected to be recognized over two to three years.

The following table summarizes outstanding share-settled awards as of March 31, 2020:



As of and for the quarter ended March 31, 2020	Number of Shares
	PSUs - IPO Incentive Awards	PSUs - 2019 LTI	RSUs	Stock Options	2018 Long Term Incentive Plan (LTIP)
Unvested, beginning of period	555,163	391,136	1,353,852	1,374,945	870,471
Granted	—	—	—	—	—
Vested	—	—	—	—	—
Forfeited	11,967	8,809	33,015	—	14,372
Unvested, end of period	543,196	382,327	1,320,837	1,374,945	856,099

For the three months ended March 31, 2019, Sirius Group granted employees 401,311 PSUs, 1,411,714 RSUs, and 1,374,945 stock options.

Cash-Settled Awards

From time to time, the Company may issue cash-settled awards to its employees. In February 2020, Sirius Group awarded long-term incentive compensation to certain employees of the Company in the form of three-year, cliff-vested, phantom performance shares and phantom restricted shares that are payable in cash. Phantom performance shares compound through the end of the three-year award period based on the performance metrics during the period. The performance goals were determined by the Compensation Committee of the Board of Directors upon granting of awards. During the three months ended March 31, 2020, the Company recognized an expense of $1.6 million related to this award.

In addition, Sirius Group issued retention awards to certain key employees of the Company that vest and are paid in equal proportions on or prior to March 15, 2020 and on or prior to March 15, 2021, subject to continued employment on the applicable vesting date. In total the retention awards issued under this retention program were $13.8 million, of which, $6.9 million was paid on March 15, 2020. During the three months ended March 31, 2020, the Company recognized an expense of $6.3 million in General and administrative expenses.