XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.2
Share-Based Incentive Plan
 6 Months Ended
Jun. 30, 2022
Share-based Payment Arrangement [Abstract]  
Share-Based Incentive Plan Share-Based Incentive PlanPrior to the Distribution, Viatris adopted and Pfizer, in the capacity as Viatris’ sole stockholder at such time, approved the Plan which became effective as of the Distribution. In connection with the Combination, as of November 16, 2020, the Company assumed the 2003 LTIP, which had previously been approved by Mylan shareholders. The Plan and 2003 LTIP include (i) 72,500,000 shares of common stock authorized for grant pursuant to the Plan, which may include dividend payments payable in common stock on unvested shares granted under awards, (ii) 6,757,640 shares of common stock to be issued pursuant to the exercise of outstanding stock options granted to participants under the 2003 LTIP and assumed by Viatris in connection with the Combination and (iii) 13,535,627 shares of common stock subject to outstanding equity-based awards, other than stock options, assumed by Viatris in connection with the Combination, or that otherwise remain available for issuance under the 2003 LTIP.
Under the Plan and 2003 LTIP, shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, SARs, restricted stock and units, PSUs, other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three to four years, and generally expire in ten years.
The following table summarizes stock awards (stock options and SARs) activity under the Plan and 2003 LTIP:
Number of Shares Under Stock AwardsWeighted Average Exercise Price per Share
Outstanding at December 31, 20215,576,490 $37.19 
Forfeited(782,735)$30.69 
Outstanding at June 30, 20224,793,755 $38.25 
Vested and expected to vest at June 30, 20224,748,296 $38.43 
Exercisable at June 30, 20224,518,196 $39.43 
As of June 30, 2022, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had average remaining contractual terms of 4.5 years, 4.5 years and 4.3 years, respectively. Also, as of June 30, 2022, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had no aggregate intrinsic value.
A summary of the status of the Company’s nonvested restricted stock awards (restricted stock and restricted stock unit awards, including PSUs) as of June 30, 2022 and the changes during the six months ended June 30, 2022 are presented below:
Number of Restricted Stock AwardsWeighted Average Grant-Date Fair Value Per Share
Nonvested at December 31, 202116,858,128 $15.12 
Granted16,778,913 10.20 
Released(3,576,289)17.92 
Forfeited(730,250)12.85 
Nonvested at June 30, 202229,330,502 $12.01 
As of June 30, 2022, the Company had $238.6 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 1.8 years. The total intrinsic value of restricted stock units released during the six months ended June 30, 2022 and 2021 was $64.1 million and $71.9 million, respectively.