In May 2024, our shareholders approved the Amended and Restated 2020 Stock Incentive Plan (“2020 Plan”) at the Annual Meeting held on May 1, 2024. Upon approval of the 2020 Plan, the Company’s prior equity compensation plans, including the former Non‑Employee Director Stock Option Plan, the 2007 Plan, the 2010 Plan, and the 2017 Plan, were terminated, although all outstanding awards under those plans remain in effect until exercised, forfeited, or expired in accordance with their terms.

Beginning May 1, 2024, all new share‑based compensation awards have been granted under the 2020 Plan. When originally approved, the 2020 Plan authorized 1,750,000 shares of common stock for issuance. The May 2024 shareholder approval of the Amended and Restated 2020 Plan increased the share reserve by an additional 1,100,000 shares, resulting in a total of 2,850,000 shares authorized for issuance under the 2020 Plan. As of December 31, 2025, there were 1,563,640 shares available for issuance under the 2020 Plan.

Total compensation expense related to all share-based compensation plans was $10.4 million ($0.2 million net of tax benefit), $11.9 million ($3.1 million net of tax benefit) and $11.6 million ($0.1 million net of tax benefit), respectively, during the years ended 2025, 2024 and 2023.

We determined the fair value of our stock option awards using the Black-Scholes valuation model that uses the assumptions noted in the table below. The expected term selected for stock options granted during the year represents the period of time that the stock options are expected to be outstanding based on historical data of stock option holder exercise and termination behavior of similar grants. The risk-free interest rate for periods within the contractual life of the stock option is based on the U.S. Treasury rate over the expected life at the time of grant. Expected volatility is based upon historical volatility of our stock over a period equal to the expected life of each stock option grant. Dividend yield is estimated over the expected life based on our dividend policy and historical dividends paid. To determine the amount of compensation cost to be recognized in each period, we account for forfeitures as they occur. We did not grant any stock options during 2025 or 2024.


	2023
Expected volatility	35	%
Weighted-average expected volatility	35	%
Expected dividend yield	1.6	%
Weighted-average expected dividend yield	1.6	%
Expected term, in years	5
Risk-free interest rate	4.2	%

New stock option awards granted vest one-third each year over a three-year period and have a ten-year contractual term. Compensation expense equal to the grant date fair value is recognized for these awards on a straight-line basis over the awards' vesting period. Stock options granted to employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the applicable equity and inventive plan.


	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2025	302,404	$	72.18
Exercised	(10,471)	55.28
Outstanding as of December 31, 2025	291,933	$	72.78	4.5	$	1.0
Options exercisable as of December 31, 2025	273,531	$	72.78	4.3	$	1.0
Options expected to vest as of December 31, 2025	18,402	$	72.88	7.2	$	—

The total intrinsic value of stock options that were exercised during the years ended December 31, 2025, 2024 and 2023 was $0.3 million, $14.5 million and $5.9 million, respectively. As of December 31, 2025, there was unrecognized compensation cost related to nonvested stock options of $0.1 million, which is expected to be recognized over a weighted-average period of 0.2 years.

Restricted share awards for employees generally have a three-year vesting period from the effective date of the grant. Restricted share awards to non-employee directors vest upon a change of control or upon termination of service as a director occurring at least six months after grant date of the award so long as termination is for one of the following reasons: death; disability; retirement in accordance with Tennant policy (e.g., age, term limits, etc.); resignation at request of Board (other than for gross misconduct); resignation following at least six months’ advance notice; failure to be renominated (unless due to unwillingness to serve) or reelected by shareholders; or removal by shareholders. We use the closing share price the day before the grant date to determine the fair value of our restricted share awards. Expenses for these awards are recognized over the vesting period.


	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding as of January 31, 2025	86,205	$	80.18
Granted	41,066	89.16
Vested	(16,097)	78.78
Forfeited	(4,611)	98.20
Outstanding as of December 31, 2025	106,563	$	83.07

The total fair value of restricted shares vested during the years ended December 31, 2025, 2024 and 2023 was $1.3 million, $1.6 million and $0.4 million, respectively. As of December 31, 2025, there was $3.7 million of total unrecognized compensation cost related to restricted share awards, which is expected to be recognized over a weighted-average period of 1.8 years.

We grant performance share awards to key employees as a part of our long-term management compensation program. These awards are earned based upon achievement of certain financial performance targets over a three year period. The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of the financial performance targets. We use the closing share price the day before the grant date to determine the fair value of our performance share awards. Expenses on these awards are recognized over a three-year performance period. Performance shares are granted in restricted stock units. They are payable in stock and vest solely upon achievement of certain financial performance targets during this three-year period.


	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding as of January 1, 2025	149,617	$	85.94
Granted	75,256	87.11
Vested	(57,653)	78.29
Forfeited	(11,337)	93.32
Outstanding as of December 31, 2025	155,883	$	88.87

As of December 31, 2025, there was $4.0 million of total unrecognized compensation costs related to performance share awards, which is expected to be recognized over a weighted-average period of 1.7 years.

We grant restricted stock units to employees and non-employee directors, which generally vest within three years from the date of the grant. Vested restricted stock units are paid out in stock. We use the closing share price the day before the grant date to determine the fair value of our restricted stock units. Expenses on these awards are recognized on a straight-line basis over the vesting period of the award.


	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding as of January 1, 2025	132,143	$	85.08
Granted	43,007	80.81
Vested	(37,629)	81.19
Forfeited	(11,399)	91.14
Outstanding as of December 31, 2025	126,122	$	84.24

The total fair value of shares vested during the years ended December 31, 2025, 2024 and 2023 was $3.1 million, $2.2 million and $3.0 million, respectively. As of December 31, 2025, there was $3.1 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of 1.5 years.