Capital Stock and Equity Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Equity Compensation

Equity Compensation Expense

The components of equity compensation expense were as follows:


	Three Months Ended
(Dollars in millions)	March 31, 2025		March 31, 2024
Performance-based restricted stock units expense	$	1.8	$	1.3
Time-based restricted stock units expense	1.7		1.9
Deferred stock units expense	0.1		—
Other	—		0.3
Total equity compensation expense	$	3.6	$	3.5

Performance-Based Restricted Stock Units

As of March 31, 2025, we had outstanding performance-based restricted stock units with a market condition from 2025, 2024 and 2023. These awards generally cliff vest at the end of a three-year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The performance-based restricted stock units with a market condition have one measurement criterion: the three-year total shareholder return on our capital stock as compared to that of a specified group of peer companies. The fair value of this measurement criterion was determined on the grant date using a Monte Carlo simulation valuation model. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.

The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2025 and 2024:


	February 26, 2025	February 19, 2024	February 13, 2024
Expected volatility	45.6%	46.3%	46.2%
Expected term (in years)	2.9	2.9	2.9
Risk-free interest rate	4.28%	4.35%	4.35%

Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility.

Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model.

Risk-free interest rate – We use an implied “spot rate” yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate.

Expected dividend yield – We do not currently pay dividends on our capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model.

As of March 31, 2025, we had outstanding performance-based restricted stock units with a performance condition from 2024. These awards generally cliff vest at the end of a two-year performance period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.

The performance-based restricted stock units with a performance condition have one measurement criterion: 2025 net revenue. The fair value of these awards was determined based on the market value of the underlying stock price at the grant date with cumulative compensation expense recognized to-date being increased or decreased based on the changes in the forecasted payout percentage as of the end of each reporting period. As of March 31, 2025, the performance condition is not probable of vesting. As such, no compensation expense has been recognized for the performance-based restricted stock units. We account for forfeitures as they occur.

A summary of activity of the outstanding performance-based restricted stock units for the three months ended March 31, 2025 is presented below:


			Performance-Based Restricted Stock Units
Awards outstanding as of December 31, 2024			109,106
Awards granted			83,834
Stock issued			—
Awards forfeited/cancelled			(2,218)
Awards outstanding as of March 31, 2025			190,722

Time-Based Restricted Stock Units

As of March 31, 2025, we had time-based restricted stock unit awards from 2025, 2024, 2023 and 2022 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price at the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur.

A summary of activity of the outstanding time-based restricted stock units for the three months ended March 31, 2025 is presented below:


			Time-Based Restricted Stock Units
Awards outstanding as of December 31, 2024			110,745
Awards granted			88,973
Stock issued			(39,852)
Awards forfeited/cancelled			(2,339)
Awards outstanding as of March 31, 2025			157,527

Deferred Stock Units

We grant deferred stock units to non-management directors. These awards are fully vested on the date of grant and the related shares are generally issued on the 13-month anniversary of the grant date unless the individual elects to defer the receipt of those shares. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price at the grant date.

A summary of activity of the outstanding deferred stock units for the three months ended March 31, 2025 is presented below:


			Deferred Stock Units
Awards outstanding as of December 31, 2024			11,900
Awards granted			536
Stock issued			(450)
Awards outstanding as of March 31, 2025			11,986