Equity Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Equity Based Compensation

Equity Based Compensation

Equity compensation expense was $3 million and $29 million in the first nine months of 2020 and 2019, respectively. In the first quarter of 2020, the Company granted 456,301 stock appreciation rights at $117.85 weighted average exercise price per share, 175,047 performance contingent units and 30,129 restricted stock units to employees. Additionally, non-employee directors were granted a total of 16,665 shares of common stock. As of September 30, 2020, 1,263,304 share options at a weighted average strike price per share of $87.78 were vested and exercisable, with a remaining weighted average exercise period of 4.1 years. As of September 30, 2020, the total compensation cost of non-vested awards not yet recognized in the condensed consolidated financial statements was $21 million. It is estimated that these costs will vest over a weighted average period of 1.0 year.