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Stock-Based Compensation
 12 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The Company’s stock-based compensation plans consist of the Amended and Restated Annual Incentive Compensation Plan (the “AIP”), the 2002 Universal Stock Incentive Plan, as amended and restated (the “USIP”) and the amended and restated Franklin Resources, Inc. 1998 Employee Stock Investment Plan (the “ESIP”). In connection with the acquisition of Legg Mason, the Company assumed the Legg Mason 2017 Equity Incentive Plan, which was amended and restated as the Amended and Restated Franklin Resources, Inc. 2017 Equity Incentive Plan (the “EIP”). The Compensation Committee of the Board of Directors determines the terms and conditions of awards under the AIP, the USIP, the ESIP and the EIP.
Stock-based compensation expenses were as follows:
(in millions)
for the fiscal years ended September 30,202120202019
Stock and stock unit awards$165.2 $117.1 $105.7 
Employee stock investment plan6.7 5.2 5.8 
Phantom unit awards30.4 2.7 1.7 
Total$202.3 $125.0 $113.2 
Stock and Stock Unit Awards
Under the terms of the AIP, eligible employees may receive cash, equity awards and/or mutual fund unit awards generally based on the performance of the Company and/or its funds, and the individual employee. The USIP and EIP provide for the issuance of the Company’s common stock for various stock-related awards to officers, directors and employees. In February 2021, the Company’s stockholders approved an amendment and restatement of the USIP increasing the number of shares authorized by 20.0 million shares to a total of 140.0 million shares. There are 23.0 million shares authorized under the EIP. At September 30, 2021, 23.4 million shares and 14.4 million shares were available for grant under the USIP and EIP.
Stock awards entitle holders to the right to sell the underlying shares of the Company’s common stock once the awards vest. Stock unit awards entitle holders to receive the underlying shares of common stock once the awards vest. Awards vest based on the passage of time or the achievement of predetermined Company financial performance goals.
Stock and stock unit award activity was as follows:
(shares in thousands)Time-Based
Shares		Performance-
Based Shares		Total
Shares		Weighted-Average
Grant-Date
Fair Value
for the fiscal year ended September 30, 2021
Nonvested balance at September 30, 202012,141 4,808 16,949 $24.30 
Granted5,906 240 6,146 21.08 
Vested(3,500)(619)(4,119)26.56 
Forfeited/canceled(570)(572)(1,142)30.61 
Modified199 (199)—  n/a
Nonvested balance at September 30, 202114,176 3,658 17,834 $22.27 
Total unrecognized compensation expense related to nonvested stock and stock unit awards was $282.5 million at September 30, 2021. This expense is expected to be recognized over a remaining weighted-average vesting period of 2.5 years. The weighted-average grant-date fair values of stock awards and stock unit awards granted during fiscal years 2021, 2020 and 2019 were $21.08, $23.05 and $30.75 per share. The total fair value of stock and stock unit awards vested during
the same periods was $121.2 million, $72.2 million and $84.2 million.
The Company generally does not repurchase shares upon vesting of stock and stock unit awards. However, in order to pay taxes due in connection with the vesting of employee and executive officer stock and stock unit awards, shares are repurchased using a net stock issuance method.
Employee Stock Investment Plan
The ESIP allows eligible participants to buy shares of the Company’s common stock at a discount of its market value on defined dates. A total of 1.1 million shares were issued under the ESIP during fiscal year 2021, and 4.8 million shares were reserved for future issuance at September 30, 2021.