Emera has a performance share unit (PSU) plan and a restricted share unit (RSU) plan. The PSU and RSU liabilities are 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. In the case of retirement, as defined in the PSU plan, grants may continue to vest in full and payout in normal course post-retirement.

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, 2022		176			56.21		9
Granted including DRIP		73			52.83		4
Exercised		(70	)		54.62		4
Forfeited		(5	)		54.72		0
Transferred (1)		(31	)		56.17		2
Outstanding as of December 31, 2023		143			55.32		7

Compensation cost recognized for the PSU plan for the years ended December 31, 2023, 2022 and 2021 was $2 million, $4 million and $3 million, respectively. Tax benefits related to this compensation cost for share units realized for the years ended December 31, 2023, 2022 and 2021 were $1 million, $1 million and $1 million, respectively. Cash payments made during the year ended December 31, 2023, 2022 and 2021 associated with the PSU plan were $3 million, $7 million and $10 million, respectively. As of December 31, 2023 and 2022, there was $2 million and $3 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.

Under the RSU plan, certain executive and senior employees are eligible for long-term incentives payable through the RSU plan. RSUs are granted annually for three-year overlapping performance cycles, resulting in a cash payment. RSUs 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 paid in the form of additional RSUs. The RSU value varies according to the Emera common share market price.

RSUs vest at the end of the three-year cycle and the payouts will be calculated and approved by the 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. In the case of retirement, as defined in the RSU plan, grants may continue to vest in full and payout in normal course post-retirement.

A summary of the activity related to TEC employee RSUs 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, 2022		173			56.23		9
Granted including DRIP		60			52.11		3
Exercised		(49	)		54.62		3
Forfeited		(5	)		54.72		0
Transferred (1)		(29	)		56.30		1
Outstanding as of December 31, 2023		150			55.15		8

(1)

This amount includes 35,774 units transferred to PGS upon their separation from TEC on January 1, 2023.

Compensation cost recognized for the RSU plan for the years ended December 31, 2023, 2022 and 2021 was $2 million, $3 million and $2 million, respectively. Tax benefits related to this compensation cost for share units realized for the years ended December 31, 2023, 2022 and 2021 were $1 million, $1 million and zero, respectively. Cash payments made during the year ended December 31, 2023, 2022 and 2021 associated with the RSU plan were $3 million, none and none, respectively. As of December 31, 2023 and 2022, there was $2 million and $3 million, respectively, of unrecognized compensation cost related to non-vested RSUs that is expected to be recognized over a weighted-average period of two years.