Share-based compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Schedule of share-based compensation expense and related income tax benefit

Share-based compensation expense and the related income tax benefit were as follows:

	Three months ended March 31
(in millions)	2022		2021
HEI consolidated
Share-based compensation expense 1	$	2.1	$	2.6
Income tax benefit	0.3		0.4
Hawaiian Electric consolidated
Share-based compensation expense 1	0.6		1.1
Income tax benefit	0.1		0.3

1    For the three months ended March 31, 2022 and 2021, the Company has not capitalized any share-based compensation.

Schedule of restricted stock units

Information about HEI’s grants of restricted stock units was as follows:

	Three months ended March 31
	2022				2021
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	233,448		$	38.10	193,939		$	40.89
Granted	96,455		41.29		127,598		33.98
Vested	(90,380)		37.58		(78,988)		38.51
Forfeited	(31,178)		38.78		(6,358)		42.20
Outstanding, end of period	208,345		$	39.71	236,191		$	37.91
Total weighted-average grant-date fair value of shares granted (in millions)	$	4.0			$	4.3

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders

Information about HEI’s LTIP grants linked to TSR was as follows:

	Three months ended March 31
	2022				2021
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	90,974		$	42.86	89,222		$	42.10
Granted	26,079		54.92		44,210		41.12
Vested (issued or unissued and cancelled)	(29,042)		41.07		(32,355)		38.20
Forfeited	(11,671)		42.60		(1,024)		45.89
Outstanding, end of period	76,340		$	47.70	100,053		$	42.89
Total weighted-average grant-date fair value of shares granted (in millions)	$	1.4			$	1.8

(1)    Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

Schedule of Long-Term Incentive Plan assumptions

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted:

	2022		2021
Risk-free interest rate	1.71	%	0.19	%
Expected life in years	3		3
Expected volatility	31.0	%	29.9	%
Range of expected volatility for Peer Group	25.4% to 76.7%		25.6% to 102.9%
Grant date fair value (per share)	$54.92		$41.12

Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions

Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	Three months ended March 31
	2022				2021
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	306,342		$	38.42	220,715		$	41.03
Granted	104,300		41.29		176,844		33.98
Vested	(71,807)		37.68		(43,155)		34.12
Increase above target (cancelled)	—		—		(14,604)		43.90
Forfeited	(46,684)		36.77		(4,098)		44.36
Outstanding, end of period	292,151		$	39.89	335,702		$	38.04
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	4.3			$	6.0

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.