Employers Holdings, Inc.EIG

Employers Holdings, Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
Earnings Per Common Share
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilutive impact of all common stock equivalents on earnings per share. Diluted earnings per share includes common shares assumed issued under the "treasury stock method," which reflects the potential dilution that would occur if outstanding RSUs and PSUs vested.
Employees that are awarded RSUs and PSUs are entitled to receive dividend equivalents for eligible awards, payable in cash, when and if, the underlying award vests and becomes payable. Therefore, these awards are not considered participating securities for the purposes of determining earnings per share.
The following table presents the net income and the weighted average number of shares outstanding used in the earnings per common share calculations.
Years Ended December 31,
202520242023
(in millions, except share data)
Net income$10.8 $118.6 $118.1 
Weighted average number of shares outstanding–basic23,386,329 25,050,605 26,368,801 
Effect of dilutive securities:
Stock options— — 2,072 
PSUs93,341 86,920 110,342 
RSUs46,231 57,289 42,436 
Dilutive potential shares139,572 144,209 154,850 
Weighted average number of shares outstanding–diluted23,525,901 25,194,814 26,523,651 
Diluted earnings per share excludes outstanding potential dilutive shares in periods where the inclusion of such securities would be anti-dilutive under the treasury stock methodology. Potential dilutive shares of 1,310, 20,518 and 22,395 for the years ended December 31, 2025, 2024 and 2023, respectively, were excluded from the Company's diluted earnings per share computations because they were anti-dilutive.
No outstanding PSUs and RSUs are considered in the Company's diluted earnings per share computations in any period that involves a net loss because their inclusion would be anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 24, 2022
2020Feb 23, 2021
2019Feb 20, 2020
2018Feb 28, 2019
2017Mar 1, 2018
2016Feb 24, 2017
2015Feb 19, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesFair ValuePP&ESegmentsCommitmentsNew StandardsPay vs PerformanceNEO Compensation Adjustments