Emera has a performance share unit (PSU) plan. The PSU liability is marked-to-market at the end of each period based on an average common share price at the end of the period. Emera common shares are traded on the Toronto Stock Exchange under the symbol EMA.

Under the PSU plan, certain executive and senior employees are eligible for long-term incentives payable through the PSU plan. PSUs are granted annually for three-year overlapping performance cycles, resulting in a cash payment. PSUs are granted based on the average of Emera’s stock closing price for the fifty trading days prior to the effective grant date. Dividend equivalents are awarded and are paid in the form of additional PSUs. The PSU value varies according to the Emera common share market price and corporate performance.

PSUs vest at the end of the three-year cycle and the payouts will be calculated and approved by the Emera Management Resources and Compensation Committee (MRCC) early in the following year. The value of the payout considers actual service over the performance cycle and may be pro-rated in certain departure scenarios.

A summary of the activity related to TEC employee PSUs is presented in the following table:


				Weighted		Aggregate
	Number of			Average Grant		Intrinsic
	Units			Date Fair Value		Value
	(Thousands)			(Per Unit)		(Millions)
Outstanding as of December 31, 2020		390			46.87		21
Granted including DRIP		91			52.25		5
Exercised		(175	)		48.12		10
Forfeited		(26	)		47.82		1
Transferred		5			47.18		0
Outstanding as of December 31, 2021		285			47.74		18

Compensation cost recognized for the PSU plan for the years ended December 31, 2021, 2020 and 2019 was $3 million, $8 million and $8 million, respectively. Tax benefits related to this compensation cost for share units realized for the years ended December 31, 2021, 2020 and 2019 were $1 million, $2 million and $2 million, respectively. Cash payments made during the year ended December 31, 2021, 2020 and 2019 associated with the PSU plan were $10 million, $9 million and zero, respectively. As of December 31, 2021 and 2020, there was $3 million and $5 million, respectively, of unrecognized compensation cost related to non-vested PSUs that is expected to be recognized over a weighted-average period of two years.