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STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Plans
The Company’s stock-based compensation program is a long-term retention program that is intended to attract and reward talented employees and align stockholder and employee interests. As of June 30, 2022, the Company had three stock-based compensation plans with shares available for grant.
The Company is currently granting stock-based awards from its Second Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”), which was amended at the Company's Annual Meeting of Stockholders on June 3, 2020. Pursuant to the June 2020 amendment, the maximum number of shares of common stock available for issuance under the 2014 Plan was increased to 51,300,000. In addition, the amendment extended the term of the 2014 Plan to June 3, 2030 and updated the vesting provisions from monthly to annual vesting for annual director awards, consistent with the Company's current compensation program for non-employee directors. As of June 30, 2022, there were 13,651,187 shares of common stock reserved for issuance pursuant to the Company’s stock-based compensation plans, including authorization under its 2014 Plan to grant stock-based awards covering 10,268,094 shares of common stock.
In connection with the Wrike acquisition, on February 26, 2021, the Company's Board of Directors adopted the 2021 Inducement Plan (the “2021 Inducement Plan”). The 2021 Inducement Plan provides for the grant of equity awards to induce highly-qualified prospective officers and employees to accept employment and to provide them with a proprietary interest in the Company. The Company is authorized to issue 320,000 shares of common stock for inducement awards under the 2021 Inducement Plan. As of June 30, 2022, there were 144,998 shares of common stock reserved for issuance pursuant to the 2021 Inducement Plan, including authorization under the 2021 Inducement Plan to grant stock-based awards covering 48,322 shares of common stock.
Effective February 26, 2021, the Company assumed the Wrangler Topco, LLC Second Amended and Restated 2018 Equity Incentive Plan (the “Wrangler Plan”) and the Wrike, Inc. Amended and Restated 2013 Stock Plan (the “Wrike Plan”). As of June 30, 2022, there were 655,257 shares of the Company’s common stock reserved and authorized for issuance under the terms of the Wrangler Plan, including authorization under the Wrangler Plan to grant stock-based awards covering 226,616 shares of common stock. As of June 30, 2022, there were 127,838 shares of the Company's common stock reserved and authorized for issuance under the terms of the Wrike Plan. All of the Wrike Plan awards are currently outstanding with no new shares available for issuance.
Stock-Based Compensation
The detail of the total stock-based compensation recognized by income statement classification is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Income Statement Classifications2022202120222021
Cost of subscription, support and services$3,126 $4,546 $6,666 $8,952 
Research and development25,714 25,792 59,242 56,919 
Sales, marketing and services17,759 28,649 40,523 56,991 
General and administrative19,428 22,944 39,004 45,931 
Total$66,027 $81,931 $145,435 $168,793 
Non-vested Stock Units
Service-Based Stock Units
The Company awards senior level employees and certain other employees non-vested stock units granted under the 2014 Plan that vest based on service. These non-vested stock unit awards primarily vest 33.33% on each of the first, second and third anniversary subsequent to the grant date of the award. Each non-vested stock unit, upon vesting, represents the right to receive one share of the Company’s common stock. In addition, the Company awards non-vested stock units to all of its continuing non-employee directors, which represent the right to receive one share of the Company's common stock upon vesting. Awards granted to non-employee directors vest in full in one installment on the earlier of: (i) the first anniversary of the award date; or (ii) the day immediately prior to the Company’s next annual meeting of stockholders following the award date.
During the three months ended June 30, 2022, the Company awarded certain non-executive senior level employees and certain other employees, 947,202 non-vested stock units granted under the 2014 Plan that vest based on service and 62,749 non-vested stock units granted under the Wrangler Plan that also vest based on service. During the six months ended June 30, 2022, the Company awarded certain non-executive senior level employees and certain other employees, 1,008,330 non-vested stock units granted under the 2014 Plan that vest based on service and 117,440 non-vested stock units granted under the Wrangler Plan that also vest based on service. These non-vested stock unit awards primarily vest 100% on the first anniversary of the grant date of the award, subject to continued employment through such date.
Unrecognized Compensation Related to Stock Units
As of June 30, 2022, the total number of non-vested stock units outstanding, including company performance awards and service-based awards was 3,621,373. As of June 30, 2022, there was $312.3 million of total unrecognized compensation cost related to non-vested stock units. The unrecognized cost of the awards legally granted through June 30, 2022 is expected to be recognized over a weighted-average period of 1.30 years.
Company Performance Stock Units
The Company recorded stock-based compensation costs related to its company performance stock units of $4.4 million and $16.4 million for the three and six months ended June 30, 2022, respectively, and $6.4 million and $19.6 million for the three and six months ended June 30, 2021, respectively.
Assumed stock options
In connection with the acquisition of Wrike, the Company assumed 526,113 outstanding stock options which expire ten years from the date of grant and which were valued using the Black-Scholes option-pricing model. Of these assumed awards, 180,003 options continued with the same monthly vesting conditions under which they were originally granted. The majority of the remaining assumed options were reset to primarily cliff vest on December 31, 2021 or annually over two years.
The estimated weighted-average grant date fair value for the assumed stock options was $103.22 per share and total fair value of $54.3 million. For the three and six months ended June 30, 2022, the Company recorded stock-based compensation costs related to unvested assumed stock options of $2.1 million and $4.6 million, respectively. For the three and six months ended June 30, 2021, the Company recorded stock-based compensation costs related to unvested assumed stock options of $4.5 million and $6.5 million, respectively. As of June 30, 2022, there was $0.7 million of total unrecognized compensation costs related to unvested assumed stock options to be recognized over a weighted-average period of 0.43 years. See Note 6 for detailed information on the Wrike acquisition.