Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

The Northern Trust Corporation 2017 Long-Term Incentive Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards.

Restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires after satisfying applicable age and service requirements.

The Corporation granted 921,895 stock units awards with a total grant-date fair value of $103.0 million during the three months ended March 31, 2025, compared to 1,086,910 stock units awards with a total grant-date fair value of $86.0 million during the three months ended March 31, 2024. Compensation expense for the three months ended March 31, 2025 included $34.4 million attributable to restricted stock units granted to retirement-eligible employees that were expensed in their entirety on the date of grant, compared to $28.8 million in the prior-year quarter.

The Corporation granted 186,460 performance stock units with a total grant-date fair value of $21.1 million during the three months ended March 31, 2025, compared to 262,557 performance stock units with a total grant-date fair value of $21.0 million during the three months ended March 31, 2024. Compensation expense for the three months ended March 31, 2025 included $12.9 million attributable to performance stock units granted to retirement-eligible employees that were expensed in their entirety on the date of grant, compared to $12.8 million in the prior-year quarter.

Restricted stock unit award compensation expense for the three months ended March 31, 2025 and 2024 included $5.5 million and $4.5 million, respectively, attributable to restricted stock units vested in full and expensed in their entirety upon date of grant.

Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three months ended March 31, 2025 and 2024.

TABLE 65: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS


	THREE MONTHS ENDED MARCH 31,
(In Millions)		2025		2024
Restricted Stock Unit Awards		$	57.5	$	49.4
Performance Stock Units		14.4		17.0
Total Share-Based Compensation Expense		71.9		66.4
Tax Benefits Recognized		$	17.6	$	16.8