AVNET INC Stock Compensation Disclosure
12. Stock-based compensation
The Company measures all stock-based payments at fair value and recognizes related expense within selling, general and administrative expenses in the consolidated statements of operations over the requisite service period (generally the vesting period). During fiscal 2025, 2024, and 2023, the Company recorded stock-based compensation expense of $36.4 million, $33.5 million, and $38.8 million, respectively, for all forms of stock-based compensation awards.
Stock plan
At June 28, 2025, the Company had 4.7 million shares of common stock reserved for stock-based payments, which consisted of 0.8 million shares for unvested or unexercised stock options, 2.5 million shares available for stock-based awards under plans approved by shareholders, and 1.3 million shares for restricted stock units and performance share units granted but not yet vested.
Stock options
There were no stock options granted in fiscal 2025 and 2024, and the stock-based compensation expense and unamortized stock-based compensation associated with stock options were not material.
Restricted stock units
Delivery of restricted stock units, and the associated compensation expense, is recognized over the vesting period and is generally subject to the employee’s continued service to the Company, except for employees who are retirement eligible under the terms of the restricted stock units. As of June 28, 2025, 1.0 million shares previously awarded have not yet vested. Stock-based compensation expense associated with restricted stock units was $34.3 million, $32.6 million, and $30.5 million for fiscal years 2025, 2024, and 2023, respectively.
The following is a summary of the changes in non-vested restricted stock units during fiscal 2025:
Weighted |
| |||||
Average |
| |||||
Grant-Date |
| |||||
| Shares |
| Fair Value |
| ||
Non-vested restricted stock units at June 29, 2024 |
| 1,084,587 | $ | 44.02 | ||
Granted |
| 704,020 |
| 52.06 | ||
Vested |
| (700,260) |
| 44.79 | ||
Forfeited |
| (44,591) | 47.58 | |||
Non-vested restricted stock units at June 28, 2025 |
| 1,043,756 | $ | 48.78 | ||
As of June 28, 2025, there was $21.4 million of total unrecognized compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 2.1 years. The total fair value of restricted stock units vested during fiscal 2025, 2024, and 2023, was $31.4 million, $31.0 million, and $28.6 million, respectively.
Performance share units
The Company granted 0.2 million performance share units during fiscal 2025, 2024, and 2023. During fiscal 2025, 2024, and 2023, the stock-based compensation expense associated with the performance share units was not material.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 15, 2025 | Showing above |
| 2024 | Aug 14, 2024 | |
| 2019 | Aug 15, 2019 | |
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.