Stock-Based Compensation
Incentive Award Plan
As of December 31, 2025, outstanding awards of RSUs were categorized as either time-based awards or market-based awards, each with tandem dividend equivalents. As of December 31, 2025, 2,514,805 shares were available for future issuance under the Incentive Award Plan.
Market-based awards are valued as of the grant date utilizing a Monte Carlo simulation model that assesses the probability of satisfying certain market performance thresholds over a three year performance period.
The following table summarizes the Company's significant assumptions used in the Monte Carlo simulation models:
At Grant Date
202520242023
Volatility27.00%31.00%34.00%
Risk free interest rate4.35%4.42%4.45%
Dividend Yield3.30%3.40%3.20%

The following table summarizes the Company's RSU activity under the Incentive Award Plan:
Unvested Time-
Based RSUs
Unvested Performance
and Market-Based RSUs
Weighted Average Grant
Date Price Per Share
Outstanding as of January 1, 2023123,427712,051$23.35
Shares granted152,393445,828$18.40
Shares vested(126,885)(60,042)$29.50
Unearned performance shares(69,803)$31.40
Shares forfeited(1,343)(3,263)$19.51
Outstanding as of December 31, 2023147,5921,024,771$19.36
Shares granted197,884335,936$19.78
Shares vested(155,511)(113,954)$26.33
Unearned performance shares(82,665)$28.90
Shares forfeited(2,190)(17,360)$17.41
Outstanding as of December 31, 2024187,7751,146,728$17.71
Shares granted179,267361,634$22.98
Shares vested(162,425)(188,101)$20.95
Unearned performance shares(188,100)$16.41
Shares forfeited(9,381)(3,401)$24.34
Outstanding as of December 31, 2025195,2361,128,760$19.12
Employee Stock Purchase Plan
Employees may purchase up to an aggregate of 3,300,000 shares of the Company's common stock under the ESPP, of which 3,250,156 shares remain available as of December 31, 2025.
The following table summarizes the Company's activity under the ESPP:
Year ended December 31
202520242023
Shares purchased24,20913,90711,728
Weighted average discounted issuance price$20.17$20.14$20.07
Issuance proceeds$488$280$235
Stock-Based Compensation Expense
The following table summarizes the Company's stock-based compensation expense:
Year ended December 31
202520242023
Incentive Award Plan, net (a)$10,765 $9,759 $8,953 
Employee Stock Purchase Plan (b)142 137 68 
Stock-based compensation expense, net$10,907 $9,896 $9,021 
(a)As of December 31, 2025, there was $11,577 of total estimated unrecognized compensation expense related to the Incentive Award Plan which will be recognized through December 2028.
(b)As of December 31, 2025, there was $179 of total estimated unrecognized compensation expense related to the ESPP which will be recognized through June 2027.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2015Mar 18, 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.