AVIENT CORPAVNT

AVIENT CORP Stock Compensation Disclosure

10-KFiled Feb 17, 20263 min read
Note 12 — SHARE-BASED COMPENSATION
Share-based compensation cost recognized in the accompanying Consolidated Statements of Income includes compensation cost for share-based payment awards based on an estimated grant date fair value. Share-based compensation expense is based on awards expected to vest and therefore has been reduced for estimated forfeitures.
In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan (2020 Plan). This plan reserved 2.5 million common shares for the award of a variety of share-based compensation alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all share-based grants and awards that are earned and exercised will be issued from Avient common shares that are held in treasury.
In May 2023, our shareholders voted to approve an amendment and restatement of the 2020 Plan (Amended 2020 Plan). The Amended 2020 Plan increases the number of common shares available for awards under the 2020 plan by 2.5 million common shares.
Share-based compensation is included in Selling and administrative expense. A summary of compensation expense by type of award follows:
(In millions)202520242023
Stock appreciation rights$2.6 $6.5 $6.1 
Performance shares— 0.1 0.2 
Restricted stock units6.5 8.8 6.9 
Total share-based compensation$9.1 $15.4 $13.2 
Stock Appreciation Rights
During the years ended December 31, 2024 and 2023, the total number of SARs granted was 0.5 million and 0.5 million, respectively. No SARs were granted in 2025. Awards vest in one-third increments upon the later of the attainment of time-based vesting over a three-year service period and stock price targets. Awards granted in 2024 and 2023 are subject to an appreciation cap of 200% of the base price. SARs have contractual terms of ten years from the date of the grant.
The SARs were valued using a Monte Carlo simulation method as the vesting is dependent on the achievement of certain stock price targets. The SARs have time and stock price target requirements, both of which must be achieved in order to vest. Forfeitures were estimated at 3% per year based on our historical experience.
A summary of SAR activity for 2025 is presented below:



(In millions, except per share data)		SharesWeighted-Average Exercise Price per ShareWeighted-Average Remaining Contractual TermAggregate Intrinsic value
Outstanding as of January 1, 20252.5 $40.93 6.6$6.2 
Exercised(0.1)34.16 
Forfeited or expired(0.1)47.57 
Outstanding as of December 31, 20252.3 $40.76 5.5$0.2 
Vested and exercisable as of December 31, 20251.6 $38.01 4.7$0.2 
The total intrinsic value of SARs exercised during 2025, 2024 and 2023 was $0.4 million, $5.6 million and $0.7 million, respectively. As of December 31, 2025, there was $0.7 million of total unrecognized compensation cost related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 13 months.
Restricted Stock Units
RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are met. During 2025, 2024 and 2023, the total number of RSUs granted were 0.2 million, 0.2 million and 0.3 million, respectively. In 2025, 0.2 million RSUs vested and 0.1 million RSUs were forfeited. RSUs granted in 2024 and 2023, which generally vest on the third anniversary of the grant date, were granted to executives and other key employees. RSUs granted in 2025 vest annually over a three-year period. Compensation expense is measured on the grant date using the quoted market price of our common shares and is recognized on a straight-line basis over the requisite service period.
As of December 31, 2025, 0.5 million RSUs remain unvested with a weighted-average grant date fair value of $41.09. Unrecognized compensation cost for RSUs at December 31, 2025 was $11.1 million, which is expected to be recognized over the weighted average remaining vesting period of 20 months.
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Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 22, 2023
2021Feb 22, 2022
2020Feb 25, 2021
2019Feb 19, 2020
2018Feb 19, 2019
2017Feb 15, 2018
2016Feb 16, 2017
2015Feb 12, 2016

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.

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