Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We have a principal share-based compensation plan (the HF Sinclair Corporation Amended and Restated 2020 Long Term Incentive Plan, the “2020 Plan”). The 2020 Plan provides for the grant of unrestricted and restricted stock, restricted stock units, other stock based awards, stock options, performance awards, substitute awards, cash awards and stock appreciation rights. The restricted stock unit awards generally vest over a period of one to three years. Upon vesting, restrictions on the restricted stock units lapse at which time they convert to common shares or cash. The performance share units generally vest over a period of three years and are payable in stock or cash upon meeting certain financial and performance criteria. The number of shares ultimately issued or cash paid for the performance share units can range from zero to 200% of target award amounts. The holders of unvested restricted stock units and performance share units have the right to receive dividends. We also have a stock compensation deferral plan which allows non-employee directors to defer settlement of vested stock granted under our share-based compensation plan.

The compensation cost for these plans was $3.3 million and $8.9 million for the three months ended March 31, 2023 and 2022, respectively.

Additionally, HEP maintains an equity-based compensation plan for Holly Logistic Services, L.L.C.’s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s equity-based compensation plan was $0.4 million and $0.6 million for the three months ended March 31, 2023 and 2022.

A summary of restricted stock unit and performance share unit activity during the three months ended March 31, 2023 is presented below:

	Restricted Stock Units		Performance Share Units
Outstanding at January 1, 2023	1,055,875		771,197
Granted (1)	29,590		1,509
Vested	(857)		—
Forfeited	(25,053)		(12,540)
Performance share units converted to restricted stock units	225,217		(225,217)
Outstanding at March 31, 2023	1,284,772		534,949
(1) Weighted average grant date fair value per unit	$	52.75	$	73.27