XML 55 R38.htm IDEA: XBRL DOCUMENT v3.24.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Stock-based Compensation Expense by Award Type
The tables below summarize the Company’s stock-based compensation expense by award type and expense category line item during the years ended December 31 (in millions).
Award type202320222021
Stock appreciation rights$10.5 $8.8 $8.2 
Restricted stock units (1)118.2 81.0 89.6 
Common stock equivalents1.1 0.8 0.8 
Total (2) (3)
$129.8 $90.6 $98.6 
Schedule of Stock-based Compensation Expense by Expense Category
Expense category line item202320222021
Cost of services and product development$53.3 $32.7 $35.0 
Selling, general and administrative76.5 57.9 63.6 
Total (1) (2) (3)
$129.8 $90.6 $98.6 
(1)On February 5, 2020, prior to the COVID-19 related shutdown in the U.S., the Compensation Committee (“Committee”) of the Board of Directors of the Company established performance measures for the performance-based restricted stock units (the “PSUs”) awarded to the Company’s executive officers in 2020 under the Plan. Based on preliminary corporate performance results for the 2020 performance measures, the 2020 PSUs would have been earned at 50% of target. However, on February 3, 2021, the Committee determined to use its discretion under the Plan to approve a payout at 95% of target. In deciding to exercise this discretion to adjust the performance-based RSU payout, the Committee considered the Company’s strong overall performance in 2020 despite the significant negative impact of the COVID-19 pandemic. As a result of the modification, the Company recognized $6.5 million of incremental compensation cost during the year ended December 31, 2021.
(2)The increase in stock-based compensation expense during 2023 was primarily due to changes in retirement-eligible provisions for certain stock-based compensation awards.
(3)Includes charges of $55.5 million, $32.2 million and $41.2 million during 2023, 2022 and 2021, respectively, for awards to retirement-eligible employees. Those awards vest on an accelerated basis.
Schedule of Fair Value Assumptions of SARS
The fair value of a SARs award is determined on the date of grant using the Black-Scholes-Merton valuation model with the following weighted average assumptions for the years ended December 31:
 202320222021
Expected dividend yield (1)— %— %— %
Expected stock price volatility (2)35 %33 %31 %
Risk-free interest rate (3)3.9 %1.8 %0.4 %
Expected life in years (4)4.714.594.74
(1)The expected dividend yield assumption was based on both the Company’s historical and anticipated dividend payouts. Historically, the Company has not paid cash dividends on its Common Stock.
(2)The determination of expected stock price volatility was based on both historical Common Stock prices and implied volatility from publicly traded options in the Common Stock.
(3)The risk-free interest rate was based on the yield of a U.S. Treasury security with a maturity similar to the expected life of the award.
(4)The expected life represents the Company’s estimate of the weighted average period of time the SARs are expected to be outstanding (that is, the period between the service inception date and the expected exercise date).
Stock Appreciation Rights (SARs)  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of the Changes in SARS, RSUs, and CSEs Outstanding
The table below summarizes changes in SARs outstanding during the year ended December 31, 2023.
 Units of SARs
(in millions)		Per Share
Weighted
Average
Exercise Price		Per Share
Weighted
Average
Grant Date
Fair Value		Weighted Average
Remaining
Contractual
Term (Years)
Outstanding at December 31, 20220.8 $168.16 $42.99 3.89
Granted0.1 348.47 126.04 5.78
Exercised(0.3)129.05 29.60 n/a
Outstanding at December 31, 2023 (1) (2)0.6 $216.40 $62.85 3.92
Vested and exercisable at December 31, 2023 (2)0.3 $170.63 $42.88 3.25
n/a = not applicable
(1)As of December 31, 2023, 0.3 million of the total SARs outstanding were unvested. The Company expects that substantially all of those unvested awards will vest in future periods.
(2)As of December 31, 2023, the total SARs outstanding had an intrinsic value of $139.9 million. On such date, SARs vested and exercisable had an intrinsic value of $81.3 million.
Restricted Stock Units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of the Changes in SARS, RSUs, and CSEs Outstanding
The table below summarizes the changes in RSUs outstanding during the year ended December 31, 2023.
 Units of RSUs
(in millions)		Per Share
Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 20221.0 $211.25 
Granted (1)0.5 348.02 
Vested and released(0.5)193.30 
Outstanding at December 31, 2023 (2) (3)1.0 $275.81 
(1)The 0.5 million of RSUs granted during 2023 consisted of 0.1 million of performance-based RSUs awarded to executives and 0.4 million of service-based RSUs awarded to non-executive employees and non-management board members. The performance-based awards include RSUs in final adjustments of 2022 grants and approximately 0.1 million of RSUs representing the target amount of the grant for 2023 that is tied to an increase in Gartner’s contract value for such year. The number of performance-based RSUs for 2023 that holders could receive ranges from 0% to 200% of the target amount based on the extent to which the corresponding performance goals have been achieved and subject to certain other conditions. Any adjustments in the number of performance-based RSUs under the 2023 grant will be made in 2024.
(2)The Company expects that substantially all of the RSUs outstanding will vest in future periods.
(3)As of December 31, 2023, the weighted average remaining contractual term of the RSUs outstanding was approximately 1.1 years.
Common Stock Equivalents  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of the Changes in SARS, RSUs, and CSEs Outstanding
The table below summarizes the changes in CSEs outstanding during the year ended December 31, 2023.
 Units of CSEsPer Share
Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2022115,279 $33.35 
Granted3,196 359.23 
Converted to shares of Common Stock upon grant and termination
(12,125)100.86 
Outstanding at December 31, 2023106,350 $35.45