Emera has a performance share unit (PSU) plan. The PSU liability is marked-to-market at the end of each period based on the 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 are 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, 2018		258		$	46.68	$	11
Granted including DRIP		135			43.20		6
Exercised		(4	)		42.95		0
Forfeited		(23	)		46.16		(1	)
Transferred ⁽¹⁾		138			45.41		8
Outstanding as of December 31, 2019		504			45.45		28

Compensation cost recognized for the PSU plan for the years ended December 31, 2019, 2018 and 2017 was $8 million, $4 million and $2 million, respectively. Tax benefits related to this compensation cost for share units realized for the years ended December 31, 2019, 2018 and 2017 were $2 million, $1 million and $1 million, respectively. As of December 31, 2019 and 2018, there was $4 million and $6 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.

In November 2019, a new RSU plan was approved by Emera’s Board of Directors, with grants to begin in 2020. 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 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 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.