In September 2015, our shareholders approved the Darden Restaurants, Inc. 2015 Omnibus Incentive Plan (2015 Plan). All equity grants subject to FASB ASC Topic 718 after the date of approval are made under the 2015 Plan. No further equity grants after that date are permitted under the Darden Restaurants, Inc. 2002 Stock Incentive Plan, the RARE Hospitality International, Inc. Amended and Restated 2002 Long-Term Incentive Plan or any other prior stock option and/or stock grant plans (collectively, the Prior Plans). The 2015 Plan and the Prior Plans are administered by the Compensation Committee of the Board of Directors. The 2015 Plan provides for the issuance of up to 7.6 million common shares in connection with the granting of non-qualified stock options, restricted stock, restricted stock units (RSUs), performance-based restricted stock units (PRSUs) and other stock-based awards such as Darden stock units to employees, consultants and non-employee directors. As of May 26, 2024, approximately 0.1 million shares may be issued under outstanding awards that were granted under the Prior Plans and may still vest and be exercised in accordance with their terms.


	Fiscal Year Ended
(in millions)	May 26, 2024		May 28, 2023		May 29, 2022
Stock options	$	6.8	$	6.3	$	6.6
Restricted stock units	8.6		7.4		7.5
Darden stock units	31.9		34.8		26.9
Equity-settled performance-based restricted stock units	16.1		14.3		15.3
Employee stock purchase plan	3.0		2.8		2.7
Director compensation program/other	2.1		1.9		1.5
Total	$	68.5	$	67.5	$	60.5


	Granted in Fiscal Year Ended
	May 26, 2024			May 28, 2023			May 29, 2022
Weighted-average fair value	$	55.56		$	36.20		$	41.02
Dividend yield	3.4		%	3.8		%	3.2		%
Expected volatility of stock	42.2		%	42.0		%	39.6		%
Risk-free interest rate	4.0		%	2.8		%	0.9		%
Expected option life (in years)	5.9			5.9			6.3
Weighted-average exercise price per share	$	169.02		$	121.47		$	148.20


	Options (in millions)	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Life (Yrs)	Aggregate Intrinsic Value (in millions)
Outstanding beginning of period	1.62	$99.04	5.79	$100.6
Options granted	0.13	169.02
Options exercised	(0.40)	80.07
Options canceled	(0.01)	148.77
Outstanding end of period	1.34	$111.08	5.68	$51.6
Exercisable	0.78	$98.39	4.26	$38.6

The total intrinsic value of options exercised during fiscal 2024, 2023 and 2022 was $33.6 million, $29.7 million and $41.5 million, respectively. Cash received from option exercises during fiscal 2024, 2023 and 2022 was $31.8 million, $24.2 million and $29.7 million, respectively. Stock options generally vest over 4 years and have a maximum contractual period of 10 years from the date of grant. We settle employee stock option exercises with authorized but unissued shares of Darden common stock.

As of May 26, 2024, there was $4.8 million of unrecognized compensation cost related to unvested stock options granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of stock options that vested during fiscal 2024 was $6.8 million.

Restricted stock and RSUs are granted at a value equal to the market price of our common stock on the date of grant, and are amortized over their service periods which generally range from one to three years. Restrictions with regard to restricted stock and RSUs lapse at the end of their service periods at which time employees receive unrestricted shares of Darden stock.

As of May 26, 2024, there was $8.0 million of unrecognized compensation cost related to unvested RSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of RSUs that vested during fiscal 2024, 2023 and 2022 was $7.9 million, $6.6 million and $7.0 million, respectively.

Darden stock units are granted at a value equal to the market price of our common stock on the date of grant and will be settled in cash at the end of their vesting periods, which typically range from three to five years, at the then market price of our common stock. Compensation expense is measured based on the market price of our common stock each period, is amortized over the vesting period and the vested portion is carried as a liability on our accompanying consolidated balance sheets. We also enter into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested Darden stock units granted (see Note 8 for additional information).


(All units settled in cash)	Units (in millions)	Weighted-Average Fair Value Per Unit
Outstanding beginning of period	0.81	$161.28
Units granted	0.16	167.13
Units vested	(0.17)	168.85
Units canceled	(0.04)	131.00
Outstanding end of period	0.76	$147.60

As of May 26, 2024, our total Darden stock unit liability was $75.9 million, including $37.4 million recorded in other current liabilities and $38.5 million recorded in other liabilities on our consolidated balance sheets. As of May 28, 2023, our total Darden stock unit liability was $79.2 million, including $22.9 million recorded in other current liabilities and $56.3 million recorded in other liabilities on our consolidated balance sheets.

Based on the value of our common stock as of May 26, 2024, there was $29.9 million of unrecognized compensation cost related to Darden stock units granted under our incentive plans. This cost is expected to be recognized over a weighted-average period of 2.1 years but the amount that vests is ultimately dependent on the value of Darden stock at the vesting date. The total fair value of Darden stock units that vested during fiscal 2024 was $28.8 million.

Relative total shareholder return PRSUs are equity-settled awards that vest over the service period which ranges from three to four years, and the number of units that actually vest is determined based on the achievement of performance criteria set forth in the award agreement. The awards vest based on the achievement of market-based targets, are measured based on estimated fair value as of the date of grant using a Monte Carlo simulation, and are amortized over the service period. Additionally, under special circumstances, Darden grants equity-settled PRSUs which are earned based on specific performance criteria. These PRSUs are measured based on a value equal to the market price of our common stock on the date of grant, and are amortized over the service periods which generally range from three to four years.


	Granted in Fiscal Year Ended
	May 26, 2024			May 28, 2023			May 29, 2022
Dividend yield (1)	0.0		%	0.0		%	0.0		%
Expected volatility of stock	32.3		%	55.5		%	53.4		%
Risk-free interest rate	4.5		%	2.9		%	0.4		%
Expected option life (in years)	2.9			2.8			2.8
Weighted-average grant date fair value per unit	$	217.11		$	137.73		$	172.34

The following table presents a summary of our equity-settled PRSU activity as of and for the fiscal year ended May 26, 2024:


	Units (in millions)	Weighted-Average Grant Date Fair Value Per Unit
Outstanding beginning of period	0.36	$123.45
Units granted	0.09	217.11
Units granted performance impact	0.07	83.46
Units vested	(0.16)	89.54
Units canceled	(0.01)	181.92
Outstanding end of period	0.35	$152.39

As of May 26, 2024, there was $9.8 million of unrecognized compensation cost related to unvested equity-settled PRSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 2.2 years. The total fair value of equity-settled PRSUs that vested during fiscal 2024 was $13.6 million.

We maintain an Employee Stock Purchase Plan to provide eligible employees who have completed one year of service (excluding certain employees who are employed less than full time or own 5.0 percent or more of our capital stock or that of any subsidiary) an opportunity to invest up to $5.0 thousand per calendar quarter to purchase shares of our common stock, subject to certain limitations. Under the plan, up to an aggregate of 6.2 million shares are available for purchase by employees at a purchase price that is 85.0 percent of the fair market value of our common stock on either the first or last trading day of each calendar quarter, whichever is lower. Cash received from employees pursuant to the plan during fiscal 2024, 2023 and 2022 was $11.8 million, $11.2 million and $10.5 million, respectively. Shares issued to employees under the Employee Stock Purchase Plan during fiscal 2024, 2023 and 2022 were 0.1 million.