CONAGRA BRANDS INC. Stock Compensation Disclosure

13. SHARE-BASED PAYMENTS

In accordance with stockholder-approved equity incentive plans, we grant stock-based compensation awards, including restricted stock units, performance shares, performance-based restricted stock units, and stock options. The shares delivered upon vesting or lapse of restriction under any such arrangement may consist, in whole or part, of treasury stock or authorized but unissued stock, not reserved for any other purpose.

On September 14, 2023, our stockholders approved the Conagra Brands, Inc. 2023 Stock Plan (the “Plan”). The Plan authorizes the issuance of up to 17.4 million shares of Conagra Brands common stock. In addition to the shares under the 2023 Stock Plan, certain shares of Conagra Brands common stock subject to outstanding awards under predecessor stock plans that expire, lapse, are cancelled, terminated, forfeited, otherwise become unexercisable, or are settled for cash are available for issuance. At May 25, 2025, approximately 13.8 million shares remained reserved for granting new share-based awards.

Share Unit Awards

In accordance with stockholder-approved equity incentive plans, we grant awards of restricted stock units (“share units”) to employees and directors. These awards generally have requisite service periods of three years. Under each such award, stock is issued without direct cost to the employee. We estimate the fair value of the share units based upon the market price of our stock at the date of grant. Certain share unit grants do not provide for the payment of dividend equivalents to the participant during the requisite service period (the “vesting period”). For those grants, the value of the grants is reduced by the net present value of the foregone dividend equivalent payments.

We recognize compensation expense for share unit awards on a straight-line basis over the requisite service period, accounting for forfeitures as they occur. The compensation expense for our stock-settled share unit awards totaled $47.3 million, $38.5 million, and $34.2 million for fiscal 2025, 2024, and 2023, respectively. The tax benefit related to the stock-settled share unit award compensation expense for fiscal 2025, 2024, and 2023 was $9.5 million, $7.7 million, and $6.2 million, respectively.

The following table summarizes the nonvested share units as of May 25, 2025 and changes during the fiscal year then ended:

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During fiscal 2025, 2024, and 2023, we granted 2.2 million, 2.0 million, and 1.6 million stock-settled share units, respectively, with a weighted average grant date fair value of $27.34, $30.20, and $33.28 per share unit, respectively.

The total intrinsic value of stock-settled share units vested was $43.1 million, $28.3 million, and $34.7 million during fiscal 2025, 2024, and 2023, respectively.

At May 25, 2025, we had $52.8 million of total unrecognized compensation expense that will be recognized over a weighted average period of 1.7 years related to stock-settled share unit awards.

Performance Share Awards

Performance shares are granted to selected executives and other key employees with vesting contingent upon meeting various Company-wide performance goals. The performance goals for the three-year performance periods ending in fiscal 2025 (the “2025 performance period”) and 2026 (the “2026 performance period”) are based on our net sales and diluted earnings per share (“EPS”) growth, subject to certain adjustments, measured over the defined performance period, with each year of the performance period weighted one-third. The performance goals for the three-year performance period ending in fiscal 2027 (the “2027 performance period”) is based on our net sales and diluted EPS on a three-year cumulative basis, subject to certain adjustments, measured over the defined performance period and are subject to adjustment based on our total shareholder return during the performance period relative to a defined peer group. For each of the 2025 performance period, 2026 performance period, and 2027 performance period, the awards actually earned will range from zero to two hundred percent of the targeted number of performance shares for such performance period. Dividend equivalents are paid on the portion of performance shares actually earned at our regular dividend rate in additional shares of common stock.

Awards, if earned, will be paid in shares of our common stock. Subject to limited exceptions set forth in our performance share plan, any shares earned will be distributed after the end of the performance period, and generally only if the participant continues to be employed with the Company through the date of distribution. For awards where performance against the performance target has not been certified, the value of the performance shares is adjusted based upon the market price of our common stock and current forecasted

performance against the performance targets at the end of each reporting period and amortized as compensation expense over the vesting period. Forfeitures are accounted for as they occur.

A summary of the activity for performance share awards as of May 25, 2025 and changes during the fiscal year then ended is presented below:

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We recognized a benefit of $5.8 million and $7.7 million in fiscal 2025 and 2024, respectively, and expense of $45.0 million in fiscal 2023 for our performance share awards. The tax expense related to the compensation benefit for fiscal 2025 and 2024 was $0.1 million and $0.4 million, respectively. The tax benefit related to the compensation expense for fiscal 2023 was $1.7 million.

The total intrinsic value of performance shares vested (including shares paid in lieu of dividends) during fiscal 2025 and 2024 was $17.1 million and $22.6 million, respectively. Performance targets for the three-year performance period ending in fiscal 2022 were not met, resulting in no vesting during fiscal 2023.

Based on estimates at May 25, 2025, we had $3.6 million of total unrecognized compensation expense related to performance shares that will be recognized over a weighted average period of 1.5 years.

Stock Option Awards

In accordance with stockholder-approved equity incentive plans, we granted stock options to employees and directors for the purchase of common stock at prices equal to its fair value at the date of grant. Stock options become exercisable under various vesting schedules (typically three years) and generally expire seven to ten years after the date of grant. No stock options have been granted since fiscal 2017.

Cash received from stock option exercises for fiscal 2024 and 2023 was $3.2 million and $10.7 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $0.3 million and $0.7 million for fiscal 2024 and 2023, respectively. Cash received from stock option exercises for fiscal 2025 and the related tax benefit realized were immaterial.