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Stock Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock Compensation Stock Compensation
In connection with the IPO, the Company established the 2024 Equity Incentive Plan. The 2024 Equity Incentive Plan provides for the issuance of various stock-based awards. Under the 2024 Equity Incentive Plan, the Company has issued restricted stock awards. The equity plan currently allows for the issuance of 5,925,000 awards, as adjusted for cancelled or forfeited awards through December 31, 2024. As of December 31, 2024 the Company has capacity to issue 4,446,532 stock-based awards under its 2024 Equity Incentive Plan. Prior to the IPO, the Company’s equity plans provided for the issuance of various stock-based awards. Under the 2015 equity incentive plan, the Company issued restricted Class B interests and options to purchase restricted Class B interests. Under the 2018 equity incentive plan, the Company issued restricted Class C interests and restricted Class C options to purchase restricted Class C interests (the Class B and C restricted interests are collectively referred to as “restricted interests” and the Class B and C options are collectively referred to as “options”).
The Company measures the compensation costs of stock-based compensation arrangements based on the grant-date fair value and recognizes the costs over the period during which employees are required to provide services. Restricted stock awards are valued using the closing market price of the Company’s common stock on the date of grant. The restricted stock awards generally vest over four years. Forfeitures are recognized as they occur. The restricted interests were valued based upon the fair value of the Company at the date of grant. The options were valued using the Black-Scholes option valuation method that uses assumptions that relate to the expected volatility, the expected dividend yield, the expected life of the options, and the risk free interest rate. The Company’s restricted interests and options generally vested over five years, and the options had a term not to exceed ten years.
2024 Equity Incentive Plan
Transactions and other information related to restricted stock awards issued under the 2024 Equity Incentive Plan are as follows:
Restricted Stock Awards
Weighted Average
Grant Date Fair Value
(share amounts in thousands)
Unvested balance, December 31, 2023— $— 
Granted1,478 23.09
Unvested balance, December 31, 20241,478 $23.09 
During the year ended December 31, 2024, the Company recognized stock compensation expense of $0.9 million for its restricted stock awards.
Future stock compensation expense based on current stock-based awards is estimated to be as follows:
20252026202720282029
(in thousands)
Stock compensation expense
$8,896 $8,354 $8,354 $7,554 $108 
Restricted Interests
Transactions and other information related to restricted interests are as follows:
Class C Restricted InterestsWeighted Average
Grant Date Fair Value
(units in thousands)
Unvested balance, December 31, 2021496 $2.66 
Vested(248)2.66
Unvested balance, December 31, 2022248 2.66
Vested(248)2.66
Unvested balance, December 31, 2023— $— 
The Class B restricted interests were fully vested as of December 31, 2020.
The total fair value of Class C restricted interests vested was $0.7 million for the years ended December 31, 2023 and 2022.
During the years ended December 31, 2023 and 2022, the Company recognized stock compensation expense of $0.1 million, and $0.7 million for the Class C restricted interests, respectively.
Options
Transactions and other information related to options are as follows:
Class C Restricted OptionsWeighted Average
Grant Date Fair Value
(units in thousands)
Outstanding, December 31, 20212,512 $1.18 
Exercised(1,256)1.18
Outstanding, December 31, 20221,256 1.18
Exercised(1,256)1.18
Outstanding, December 31, 2023— $— 
The Class B restricted options were fully exercised as of December 31, 2021.
The Class C options exercised during the years ended December 31, 2023 and 2022 each had a weighted average exercise price of $2.66 and an intrinsic value of $6.3 million, and $5.9 million, respectively.
The Company did not grant any Class B or Class C options during the years ended December 31, 2024, 2023, and 2022.
For the years ended December 31, 2023, and 2022, the Company recognized stock compensation expense of $0.1 million and $1.5 million for the Class C options, respectively.
The Company’s 2015 equity award plan provides for award holders to forfeit a portion of their vested option awards to satisfy income tax and exercise price obligations when exercised. The units forfeited are reflected as a repurchase of member interests on the consolidated statement of changes in equity.
The following table sets forth the number of forfeited and cancelled options:
For the Year Ended December 31,
20232022
(units in thousands)
Class C options - forfeited and cancelled691 702 
Other Awards
Prior to the Distribution, certain of the Company’s employees participated in Select’s equity compensation plan and were granted shares of Select’s restricted stock awards. Stock compensation expense of $1.5 million and $0.5 million was recognized for the year ended December 31, 2024 and 2023, respectively, related to these awards.