GLOBE LIFE INC.GL
GLOBE LIFE INC. Stock Compensation Disclosure
Note 14—Stock-Based Compensation
Globe Life's stock-based compensation consists of stock options, restricted stock, restricted stock units, and performance shares. Certain employees and members of the board of directors (directors) have been granted fixed equity options to buy shares of Globe Life Inc. stock at the market value of the stock on the date of grant, under the provisions of the Globe Life stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which are either seven-year or ten-year terms. However, depending on the circumstances of termination, options may be exercised for a period of time following termination of employment or upon death or disability. Options generally vest in accordance with the following schedule:
| Shares vested by period | |||||||||||||||||||||||||||||
| Contract Period | 6 Months | Year 1 | Year 2 | Year 3 | |||||||||||||||||||||||||
Directors | 7 years | 100% | —% | —% | —% | ||||||||||||||||||||||||
Employees | 7 years | —% | —% | 50% | 50% | ||||||||||||||||||||||||
All employee options vest immediately upon retirement on or after the attainment of age 65, upon death, or disability. Globe Life generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Globe Life common stock in the open market to reduce the dilution from option exercises.
A summary of stock compensation activity for each of the three years ended December 31, 2025 is presented below:
| 2025 | 2024 | 2023 | |||||||||||||||
Stock-based compensation expense recognized(1) | $ | 53,355 | $ | 40,118 | $ | 30,736 | |||||||||||
| Tax benefit recognized | 10,829 | 7,085 | 11,178 | ||||||||||||||
(1)No stock-based compensation expense was capitalized in any period in accordance with applicable GAAP.
Additional stock compensation information is as follows at December 31:
| 2025 | 2024 | ||||||||||
Unrecognized compensation(1) | $ | 49,461 | $ | 46,956 | |||||||
Weighted average period of expected recognition (in years)(1) | 0.64 | 0.53 | |||||||||
(1)Includes stock options, restricted stock units and performance shares.
No equity awards were cash settled during the three years ended December 31, 2025.
Options: The following table summarizes information about stock options outstanding at December 31, 2025.
| Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
| Range of Exercise Prices | Number Outstanding | Weighted- Average Remaining Contractual Life (Years) | Weighted- Average Exercise Price | Number Exercisable | Weighted- Average Exercise Price | |||||||||||||||||||||||||||
$50.64 - $98.32 | 1,283,918 | 1.89 | $ | 92.51 | 1,283,918 | $ | 92.51 | |||||||||||||||||||||||||
100.74 | 745,000 | 1.15 | 100.74 | 745,000 | 100.74 | |||||||||||||||||||||||||||
103.23 | 935,490 | 3.14 | 103.23 | 935,490 | 103.23 | |||||||||||||||||||||||||||
105.56 - 128.40 | 1,339,536 | 4.97 | 124.90 | 266,584 | 118.92 | |||||||||||||||||||||||||||
$50.64 - $128.40 | 4,303,944 | 2.99 | $ | 106.34 | 3,230,992 | $ | 99.69 | |||||||||||||||||||||||||
An analysis of option activity for each of the three years ended December 31, 2025, is as follows:
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | ||||||||||||||||||||||||||||||
Outstanding—beginning of year | 5,825,957 | $ | 99.74 | 5,940,320 | $ | 96.19 | 6,962,374 | $ | 91.73 | ||||||||||||||||||||||||||
| Granted: | |||||||||||||||||||||||||||||||||||
7-year term | 349,342 | 127.43 | 520,810 | 128.32 | 497,060 | 120.49 | |||||||||||||||||||||||||||||
| Exercised | (1,842,860) | 89.23 | (584,993) | 88.52 | (1,375,313) | 82.95 | |||||||||||||||||||||||||||||
| Expired and forfeited | (28,495) | 120.48 | (50,180) | 106.62 | (143,801) | 90.92 | |||||||||||||||||||||||||||||
Outstanding—end of year | 4,303,944 | $ | 106.34 | 5,825,957 | $ | 99.74 | 5,940,320 | $ | 96.19 | ||||||||||||||||||||||||||
Exercisable at end of year | 3,230,992 | $ | 99.69 | 4,376,436 | $ | 93.73 | 4,003,028 | $ | 91.23 | ||||||||||||||||||||||||||
Additional information about Globe Life's stock option activity as of December 31, 2025 and 2024 is as follows:
| 2025 | 2024 | ||||||||||
| Outstanding options: | |||||||||||
| Weighted-average remaining contractual term (in years) | 2.99 | 3.15 | |||||||||
| Aggregate intrinsic value | $ | 144,251 | $ | 81,703 | |||||||
| Exercisable options: | |||||||||||
| Weighted-average remaining contractual term (in years) | 2.24 | 2.48 | |||||||||
| Aggregate intrinsic value | $ | 129,787 | $ | 77,946 | |||||||
Selected stock option activity for the three years ended December 31, 2025, is presented below:
| 2025 | 2024 | 2023 | |||||||||||||||
| Weighted-average grant-date fair value of options granted (per share) | $ | 39.92 | $ | 33.80 | $ | 32.25 | |||||||||||
| Intrinsic value of options exercised | 73,970 | 17,127 | 49,163 | ||||||||||||||
| Cash received from options exercised | 164,448 | 51,786 | 114,080 | ||||||||||||||
| Actual tax benefit received | 8,101 | 2,489 | 9,379 | ||||||||||||||
Additional information concerning Globe Life's unvested options is as follows at December 31:
| 2025 | 2024 | ||||||||||
| Number of shares outstanding | 1,072,952 | 1,449,521 | |||||||||
| Weighted-average exercise price (per share) | $ | 126.38 | $ | 117.88 | |||||||
| Weighted-average remaining contractual term (in years) | 5.25 | 5.19 | |||||||||
| Aggregate intrinsic value | $ | 14,464 | $ | 3,757 | |||||||
Globe Life expects that substantially all unvested options will vest.
Restricted Stock: Restricted stock grants consist of time-vested grants, restricted stock units, and performance shares. Time-vested restricted stock is available to directors and vests over six months. The directors' restricted stock units vest over six months and are converted to shares upon their retirement from the Board. Employees' restricted stock units vest and become non-forfeitable on the vesting date (generally three years from the grant date) or upon meeting certain retirement criteria, or in the event of death or disability. Director restricted stock and restricted stock units are generally granted on the first business day of the calendar year. Performance shares are
granted to a limited number of senior executives. Performance shares have a three-year performance period and are not settled in shares until the certification of the achievement of the performance objectives for three-year performance period. While the grant specifies a stated target number of shares, the determination of the actual settlement in shares will be based on the achievement of certain performance objectives of Globe Life over the three-year performance period. Certain executive restricted stock and performance share grants contain terms related to age that could accelerate vesting.
Following are the restricted stock units outstanding for each of the three years ended December 31, 2025:
| Year of grants | Outstanding as of year end | |||||||
| 2023 | 163,108 | |||||||
| 2024 | 219,864 | |||||||
2025(1) | 312,663 | |||||||
(1)Includes dividend equivalent units.
Below is the final determination of the performance share grants in 2021 to 2023:
| Year of grants | Final settlement of shares | Final settlement date | ||||||||||||
| 2021 | 143,211 | February 28, 2024 | ||||||||||||
| 2022 | 152,680 | February 26, 2025 | ||||||||||||
| 2023 | 149,755 | February 25, 2026 | ||||||||||||
For the 2024 and 2025 performance share grants, actual shares that could be distributed range from 0 to 145 thousand for the 2024 grants and 0 to 297 thousand shares for the 2025 grants.
A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2025, is presented in the table below:
2025(1) | 2024 | 2023 | |||||||||||||||
| Directors restricted stock: | |||||||||||||||||
| Shares | 6,530 | 7,375 | 7,110 | ||||||||||||||
| Price per share | $ | 115.20 | $ | 122.06 | $ | 119.59 | |||||||||||
| Aggregate value | $ | 752 | $ | 900 | $ | 850 | |||||||||||
| Percent vested | 100 | % | 100 | % | 100 | % | |||||||||||
| Directors restricted stock units (including dividend equivalents): | |||||||||||||||||
| Shares | 9,582 | 4,854 | 9,479 | ||||||||||||||
| Price per share | $ | 114.84 | $ | 120.16 | $ | 117.73 | |||||||||||
| Aggregate value | $ | 1,100 | $ | 583 | $ | 1,116 | |||||||||||
| Percent vested | 100 | % | 100 | % | 100 | % | |||||||||||
Employees restricted stock units: | |||||||||||||||||
| Shares | 106,089 | 101,011 | 96,975 | ||||||||||||||
| Price per share | $ | 127.43 | $ | 127.29 | $ | 120.18 | |||||||||||
| Aggregate value | $ | 13,519 | $ | 12,858 | $ | 11,654 | |||||||||||
| Percent vested | — | % | — | % | — | % | |||||||||||
| Performance shares: | |||||||||||||||||
| Target shares | 148,688 | 96,800 | 81,300 | ||||||||||||||
| Target price per share | $ | 127.44 | $ | 128.40 | $ | 120.49 | |||||||||||
| Aggregate value | $ | 18,948 | $ | 12,429 | $ | 9,796 | |||||||||||
| Percent vested | — | % | — | % | — | % | |||||||||||
(1)Includes dividend equivalent units.
Time-vested restricted stockholders are entitled to dividend payments on the unvested stock. Director restricted stock unit holders are entitled to dividend equivalents. These equivalents are granted in the form of additional restricted stock units and vest immediately upon grant. Dividend equivalents are applicable only to directors' restricted stock units and beginning in 2025 employee performance shares and restricted stock unit awards. Prior to 2025, the performance awards and restricted stock units held by employees were not entitled to dividend equivalents and not entitled to dividend payments until the shares vest and are settled.
An analysis of nonvested restricted stock is as follows:
| Executive Performance Shares | Directors Restricted Stock | Directors Restricted Stock Units | Employees Restricted Stock Units | Total | |||||||||||||||||||||||||
| 2023: | |||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 398,535 | — | — | — | 398,535 | ||||||||||||||||||||||||
| Grants | 81,300 | 7,110 | 9,479 | 96,975 | 194,864 | ||||||||||||||||||||||||
Additional performance shares(1) | (28,857) | — | — | — | (28,857) | ||||||||||||||||||||||||
| Restriction lapses | (84,298) | (7,110) | (9,479) | — | (100,887) | ||||||||||||||||||||||||
| Forfeitures | (12,600) | — | — | (4,410) | (17,010) | ||||||||||||||||||||||||
| Balance at December 31, 2023 | 354,080 | — | — | 92,565 | 446,645 | ||||||||||||||||||||||||
| 2024: | |||||||||||||||||||||||||||||
| Grants | 96,800 | 7,375 | 4,854 | 101,011 | 210,040 | ||||||||||||||||||||||||
Additional performance shares(1) | 84,712 | — | — | — | 84,712 | ||||||||||||||||||||||||
| Restriction lapses | (143,211) | (7,375) | (4,854) | (437) | (155,877) | ||||||||||||||||||||||||
| Forfeitures | (6,000) | — | — | (10,008) | (16,008) | ||||||||||||||||||||||||
| Balance at December 31, 2024 | 386,381 | — | — | 183,131 | 569,512 | ||||||||||||||||||||||||
| 2025: | |||||||||||||||||||||||||||||
| Grants | 148,688 | 6,530 | 9,582 | 106,089 | 270,889 | ||||||||||||||||||||||||
Additional performance shares(1) | 83,626 | — | — | — | 83,626 | ||||||||||||||||||||||||
| Restriction lapses | (152,680) | (6,530) | (9,582) | (2,473) | (171,265) | ||||||||||||||||||||||||
| Forfeitures | — | — | — | (20,399) | (20,399) | ||||||||||||||||||||||||
| Balance at December 31, 2025 | 466,015 | — | — | 266,348 | 732,363 | ||||||||||||||||||||||||
(1)Estimated additional (reduced) share grants expected due to achievement of performance criteria.
An analysis of the weighted-average grant-date fair values per share of non-vested restricted stock is as follows for the year 2025:
| Executive Performance Shares | Directors Restricted Stock | Directors Restricted Stock Units | Employees Restricted Stock Units | ||||||||||||||||||||
Grant-date fair value per share at January 1, 2025 | $ | 115.78 | $ | — | $ | — | $ | 124.02 | |||||||||||||||
| Grants | 127.44 | 115.20 | 114.34 | 127.18 | |||||||||||||||||||
| Estimated additional performance shares | 126.75 | — | — | — | |||||||||||||||||||
| Restriction lapses | (103.23) | (115.20) | (114.34) | (119.99) | |||||||||||||||||||
| Forfeitures | — | — | — | (125.89) | |||||||||||||||||||
Grant-date fair value per share at December 31, 2025 | 125.58 | — | — | 125.17 | |||||||||||||||||||
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.