We issue restricted stock units (“RSUs”), which consist of time-based and performance-based awards, to employees under stock awards plans approved by stockholders. In addition, RSUs are issued to non-employee directors under a Restricted Stock Unit Award Agreement for Directors pursuant to the Company's 2018 Equity Incentive Plan. RSUs granted to employees vest according to a specified performance period and/or vesting period. Time-based RSUs generally vest over three years. Performance-based RSUs vest at the end of the specified performance period, generally three years, assuming required performance or market vesting conditions are met.

For awards granted in the first quarter of 2023, our performance-based RSUs will vest solely based on our return of invested capital ("ROIC"). Award share payouts depend on the extent to which the ROIC performance goal has been achieved, but the final payout is adjusted by a total shareholder return (“TSR”) modifier.

At the time of vesting, the vested shares of common stock are issued in the employee’s name. RSUs granted to directors are only time-based and generally vest over one year.

The fair value of both time-based RSUs and performance-based RSUs pertaining to internal performance metrics is determined using the closing price of our common stock on the grant date. The fair value of performance-based RSUs pertaining to TSR is estimated using a Monte Carlo simulation. Inputs and assumptions used to calculate the fair value are shown in the table below. The fair value of these RSUs is expensed over the vesting period using the straight-line method or using the graded vesting method when an employee becomes eligible to retain the award at retirement.


Year Ended December 31,	2023			(1)	2022			2021
Fair value per stock award	$	116.17			$	141.95		$	171.63
Grant date stock price	$	111.38			$	114.52		$	141.59
Assumptions:
Aptar's stock price expected volatility	20.00		%		20.20		%	21.40		%
Expected average volatility of peer companies	39.70		%		41.70		%	50.00		%
Correlation assumption	33.30		%		41.20		%	58.10		%
Risk-free interest rate	3.83		%		2.04		%	0.32		%
Dividend yield assumption	1.36		%		1.33		%	1.02		%


	Time-Based RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2023	426,361	$	111.60	610,871	$	118.77
Granted	123,657	110.55		151,499	115.69
Vested	(193,820)	105.00		(99,182)	89.33
Forfeited	(20,324)	111.17		(148,805)	96.24
Nonvested at December 31, 2023	335,874	$	115.15	514,383	$	130.10


Year Ended December 31,	2023		2022		2021
Compensation expense	$	37,015	$	40,937	$	38,643
Fair value of units vested	29,100		32,013		32,414
Intrinsic value of units vested	33,914		33,024		42,970

The actual tax benefit realized for the tax deduction from RSUs was approximately $5.9 million, $8.0 million and $7.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, there was $41.1 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted average period of 1.7 years.

Historically we issued stock options to our employees and non-employee directors. We did not issue stock options between 2019 and 2022. Stock options were awarded in the first quarter of 2023 with the exercise price equal to the market price on the date of grant; however, Aptar executive officers received stock options with an exercise price that was 110% of the closing market price on the date of grant. Stock option grants generally vest ratably over three years and expire 10 years after grant.

The Company uses historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the stock awards plans were $19.84 and $24.23 per share for executive officers and all others employees, respectively, during 2023. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


Stock Award Plans:
Year Ended December 31,	2023
Dividend Yield	1.41	%
Expected Stock Price Volatility	16.55	%
Risk-free Interest Rate	3.57	%
Expected Life of Option (years)	7.0


	Stock Awards Plans				Director Stock Option Plans
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1, 2023	2,623,944		$	73.34	51,700		$	63.91
Granted	315,005		116.19		—		—
Exercised	(749,899)		69.94		(32,700)		62.36
Forfeited or expired	(6,266)		93.23		—		—
Outstanding at December 31, 2023	2,182,784		$	80.63	19,000		$	66.59
Exercisable at December 31, 2023	1,871,178		$	74.70	19,000		$	66.59
Weighted-Average Remaining Contractual Term (Years):
Outstanding at December 31, 2023	3.5				0.4
Exercisable at December 31, 2023	2.6				0.4
Aggregate Intrinsic Value:
Outstanding at December 31, 2023	$	93,830			$	1,084
Exercisable at December 31, 2023	$	91,533			$	1,084
Intrinsic Value of Options Exercised During the Years Ended:
December 31, 2023	$	38,706			$	1,978
December 31, 2022	$	20,608			$	—
December 31, 2021	$	69,862			$	4,248


Year Ended December 31,	2023		2022		2021
Compensation expense (included in SG&A)	$	3,929	$	—	$	185
Compensation expense (included in Cost of sales)	349		—		42
Compensation expense, Total	$	4,278	$	—	$	227
Compensation expense, net of tax	4,278		—		174
Grant date fair value of options vested	2,663		—		2,421

The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises was approximately $54.0 million, $28.5 million and $59.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $9.1 million, $4.4 million and $16.5 million in the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, there was $2.7 million of total unrecognized compensation cost relating to stock option awards which is expected to be recognized over a weighted-average period of 2.0 years.