COMMON SHARE-BASED COMPENSATION
The company recognized total compensation expense of $80.0 million, $104.6 million and $114.6 million related to equity-settled common share-based compensation for the years ended December 31, 2025, 2024 and 2023, respectively. The income tax benefit recognized in the Consolidated Statements of Income for common share-based compensation arrangements was $16.7 million for 2025 (2024: $22.1 million; 2023: $17.4 million).
Employee common share awards are broadly classified into two categories: time-vested and performance-vested. Time-vested awards vest ratably over a defined period of continued employee service. Performance-vested awards vest upon (i) the company's attainment of certain pre-established performance criteria, and (ii) a defined period of continued employee service. Time-vested and performance-vested equity awards are granted in the form of restricted stock awards (RSAs) or restricted stock units (RSUs). With respect to the performance-vested awards granted in February 2023, 2024 and 2025, vesting is tied to the achievement of specific levels of adjusted operating margin and relative total shareholder return with vesting ranging from 0% to 150%.
Employee common share awards are measured at fair value based on Invesco's common stock price at the date of grant and are expensed on a straight-line basis over the vesting period, or for employees who meet defined retirement eligibility criteria, awards are expensed over the required retirement notification period.
With respect to time-vested awards, dividends accrue directly to the employee holder of RSAs, and cash payments in lieu of dividends are made to employee holders of RSUs. With respect to performance-vested awards, cash payments in lieu of dividends are deferred and are paid at the same time and vesting percentage as the underlying awards.
The 2016 Global Equity Incentive Plan, which was originally approved by the company's common shareholders in May 2016 and most recently amended and restated in July 2024, authorizes the issuance of up to 21.2 million shares. The 2010 Global Equity Incentive Plan ST (GEIP ST), which was approved by the Board in May 2010, authorizes the issuance of up to 8.5 million shares. Awards under the GEIP ST are only granted as employment inducement awards in connection with a strategic transaction and, as a result, do not require shareholder approval under the rules of the NYSE or otherwise.
Movements on employee common share awards during the years ended December 31, 2025, 2024 and 2023 are detailed below:
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| 2025 | | 2024 | | 2023 |
| (in millions of common shares, except fair values) | Time-Vested | | Performance-Vested | | Weighted Average Grant Date Fair Value | | Time-Vested | | Performance-Vested | | Time-Vested | | Performance-Vested |
Unvested at the beginning of year | 9.8 | | | 1.4 | | | $ | 17.17 | | | 10.4 | | | 1.6 | | | 10.3 | | | 2.1 | |
| Granted | 4.6 | | | 1.0 | | | 17.95 | | | 5.0 | | | 0.9 | | | 5.7 | | | 0.3 | |
| Forfeited/Canceled due to performance measures | (0.8) | | | (0.3) | | | 18.10 | | | (0.5) | | | (0.1) | | | (0.3) | | | (0.2) | |
Vested and distributed | (3.7) | | | (0.1) | | | 18.22 | | | (5.1) | | | (1.0) | | | (5.3) | | | (0.6) | |
Unvested at the end of the year | 9.9 | | | 2.0 | | | $ | 17.12 | | | 9.8 | | | 1.4 | | | 10.4 | | | 1.6 | |
The total fair value of common shares that vested during 2025 was $66.3 million (2024: $95.7 million; 2023: $101.4 million). The weighted average grant date fair value of the U.S. dollar share awards that were granted during 2025 was $17.95 (2024: $15.20; 2023: $17.53).
At December 31, 2025, there was $106.5 million of total unrecognized compensation cost related to non-vested common share awards; that cost is expected to be recognized over a weighted average period of 2.29 years.