Share-based compensation (Tables)

3 Months Ended

Mar. 31, 2023

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)	2023		2022
HEI consolidated
Share-based compensation expense 1	$	2.0	$	2.1
Income tax benefit	0.3		0.3
Hawaiian Electric consolidated
Share-based compensation expense 1	0.7		0.6
Income tax benefit	0.1		0.1

1    For the three months ended March 31, 2023 and 2022, the Company has not capitalized any share-based compensation.

Schedule of common stock granted to nonemployee directors

HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows:

	Three months ended March 31
(dollars in millions)	2023		2022
Shares granted	1,509		—
Fair value	$	0.1	$	—
Income tax benefit	—		—

Schedule of restricted stock units

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

	Three months ended March 31
	2023				2022
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	182,528		$	39.75	233,448		$	38.10
Granted	100,088		42.41		96,455		41.29
Vested	(80,077)		39.30		(90,380)		37.58
Forfeited	(406)		38.39		(31,178)		38.78
Outstanding, end of period	202,133		$	41.25	208,345		$	39.71
Total weighted-average grant-date fair value of shares granted (in millions)	$	4.2			$	4.0

(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
	2023				2022
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	71,574		$	47.67	90,974		$	42.86
Granted	27,123		55.98		26,079		54.92
Vested (issued or unissued and cancelled)	(18,691)		48.62		(29,042)		41.07
Forfeited	—		—		(11,671)		42.60
Outstanding, end of period	80,006		$	50.27	76,340		$	47.70
Total weighted-average grant-date fair value of shares granted (in millions)	$	1.5			$	1.4

(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:

	2023		2022
Risk-free interest rate	4.19	%	1.71	%
Expected life in years	3		3
Expected volatility	33.1	%	31.0	%
Range of expected volatility for Peer Group	28.7% to 38.8%		25.4% to 76.7%
Grant date fair value (per share)	$55.98		$54.92

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
	2023				2022
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	309,589		$	39.50	306,342		$	38.42
Granted	108,499		42.41		104,300		41.29
Vested	(62,778)		48.07		(71,807)		37.68
Forfeited	—		—		(46,684)		36.77
Outstanding, end of period	355,310		$	38.87	292,151		$	39.89
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	4.6			$	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.