CHARTER COMMUNICATIONS, INC. /MO/CHTR
CHARTER COMMUNICATIONS, INC. /MO/ Stock Compensation Disclosure
Stock Compensation Plans
Charter’s stock incentive plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plan. The stock incentive plan allows for the issuance of up to 23 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock).
Restricted stock, restricted stock units, stock options as well as equity awards with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of stock options is estimated on the date of grant using the Black-Scholes option-pricing model and the fair value of equity awards with market conditions is estimated on the date of grant using Monte Carlo simulations. The grant date weighted average assumptions used during the years ended December 31, 2025, 2024 and 2023 were: risk-free interest rate of 4.5%, 3.9% and 3.7%, respectively; expected lives of 4.6 years, 5.0 years and 4.8 years, respectively; and expected volatility of 36.5%, 33% and 31%, respectively. The Company’s volatility assumptions represent management’s best estimate and were based on a review of historical and implied volatility. Expected lives were estimated using historical exercise data. The valuations assume no dividends are paid. The Company has elected an accounting policy to assume zero forfeitures for stock awards grants and account for forfeitures when they occur.
Stock options and restricted stock units generally cliff vest three years from the date of grant. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant.
As of December 31, 2025, total unrecognized compensation remaining to be recognized in future periods totaled $198 million for stock options, $1 million for restricted stock and $363 million for restricted stock units and the weighted average period over which they are expected to be recognized is 2 years for stock options, 4 months for restricted stock and 2 years for restricted stock units.
A summary of the activity for Charter’s stock options for the years ended December 31, 2025, 2024 and 2023, is as follows (shares in thousands, except per share data):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||||||||||||||||||
| Outstanding, beginning of period | 13,374 | $ | 397.54 | 12,658 | $ | 398.51 | 9,180 | $ | 396.89 | ||||||||||||||||||||||||||||||||||||||||||||
| Granted | 1,499 | $ | 347.79 | 1,381 | $ | 360.82 | 4,278 | $ | 384.50 | ||||||||||||||||||||||||||||||||||||||||||||
| Exercised | (344) | $ | 250.65 | $ | 44 | (373) | $ | 256.94 | $ | 39 | (563) | $ | 228.69 | $ | 102 | ||||||||||||||||||||||||||||||||||||||
| Canceled | (466) | $ | 392.75 | (292) | $ | 446.11 | (237) | $ | 486.77 | ||||||||||||||||||||||||||||||||||||||||||||
| Outstanding, end of period | 14,063 | $ | 395.99 | $ | 1 | 13,374 | $ | 397.54 | 12,658 | $ | 398.51 | ||||||||||||||||||||||||||||||||||||||||||
| Weighted average remaining contractual life | 5 | years | 6 | years | 5 | years | |||||||||||||||||||||||||||||||||||||||||||||||
| Options exercisable, end of period | 7,495 | $ | 417.10 | $ | 1 | 6,766 | $ | 378.31 | 6,051 | $ | 325.80 | ||||||||||||||||||||||||||||||||||||||||||
| Options expected to vest, end of period | 6,568 | $ | 371.91 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average fair value of options granted | $ | 131.31 | $ | 129.30 | $ | 126.13 | |||||||||||||||||||||||||||||||||||||||||||||||
A summary of the activity for Charter’s restricted stock for the years ended December 31, 2025, 2024 and 2023, is as follows (shares in thousands, except per share data):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Shares | Weighted Average Grant Price | Shares | Weighted Average Grant Price | Shares | Weighted Average Grant Price | ||||||||||||||||||||||||||||||
| Outstanding, beginning of period | 13 | $ | 268.55 | 11 | $ | 331.45 | 7 | $ | 494.72 | ||||||||||||||||||||||||||
| Granted | 12 | $ | 328.53 | 13 | $ | 268.55 | 11 | $ | 331.45 | ||||||||||||||||||||||||||
| Vested | (13) | $ | 268.55 | (11) | $ | 331.45 | (7) | $ | 494.72 | ||||||||||||||||||||||||||
| Canceled | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||||||||
| Outstanding, end of period | 12 | $ | 328.53 | 13 | $ | 268.55 | 11 | $ | 331.45 | ||||||||||||||||||||||||||
A summary of the activity for Charter’s restricted stock units for the years ended December 31, 2025, 2024 and 2023, is as follows (shares in thousands, except per share data):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Shares | Weighted Average Grant Price | Shares | Weighted Average Grant Price | Shares | Weighted Average Grant Price | ||||||||||||||||||||||||||||||
| Outstanding, beginning of period | 2,951 | $ | 386.44 | 2,371 | $ | 432.11 | 1,266 | $ | 545.00 | ||||||||||||||||||||||||||
| Granted | 1,295 | $ | 339.55 | 1,123 | $ | 359.24 | 1,561 | $ | 359.07 | ||||||||||||||||||||||||||
| Vested | (771) | $ | 473.53 | (369) | $ | 595.28 | (358) | $ | 510.22 | ||||||||||||||||||||||||||
| Canceled | (162) | $ | 358.90 | (174) | $ | 390.31 | (98) | $ | 440.14 | ||||||||||||||||||||||||||
| Outstanding, end of period | 3,313 | $ | 349.17 | 2,951 | $ | 386.44 | 2,371 | $ | 432.11 | ||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 30, 2026 | Showing above |
| 2024 | Jan 31, 2025 | |
| 2023 | Feb 2, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2021 | Jan 28, 2022 | |
| 2020 | Jan 29, 2021 | |
| 2019 | Jan 31, 2020 | |
| 2018 | Jan 31, 2019 | |
| 2017 | Feb 2, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 10, 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.