PITNEY BOWES INC /DE/PBI
PITNEY BOWES INC /DE/ Stock Compensation Disclosure
Stock-Based Compensation Plans
We may grant restricted stock units, stock options and other stock awards to eligible employees. All stock-based awards are approved by the Executive Compensation Committee of the Board of Directors. We settle stock awards with treasury shares. At December 31, 2025, there were 24,045,391 shares available for future grants.
Restricted Stock Units
Restricted stock units (RSUs) typically vest ratably over a three-year service period and entitle the holder to shares of common stock as the units vest. The following table summarizes information about RSUs:
| 2025 | 2024 | ||||||||||||||||||||||
| Shares | Weighted average fair value | Shares | Weighted average fair value | ||||||||||||||||||||
| Outstanding - beginning of the year | 2,008,620 | $ | 5.29 | 5,525,193 | $ | 5.74 | |||||||||||||||||
| Granted | 1,109,948 | 10.46 | 2,042,275 | 4.88 | |||||||||||||||||||
| Vested | (1,443,101) | 5.40 | (4,579,834) | 5.86 | |||||||||||||||||||
| Forfeited | (424,646) | 10.28 | (979,014) | 4.22 | |||||||||||||||||||
| Outstanding - end of the year | 1,250,821 | $ | 8.24 | 2,008,620 | $ | 5.29 | |||||||||||||||||
The fair value of RSUs is determined based on the stock price on the grant date less the present value of expected dividends. At December 31, 2025, there was $5 million of unrecognized compensation cost related to RSUs that is expected to be recognized over a weighted-average period of 2.1 years. The intrinsic value of RSUs outstanding at December 31, 2025 was $13 million. The fair value of RSUs vested during 2025, 2024 and 2023 was $15 million, $22 million and $12 million, respectively. During 2023, we granted 2,068,825 RSUs at a weighted average fair value of $4.19.
In 2025 and 2024, RSUs granted include 84,044 and 226,581, respectively, to non-employee directors. These RSUs vest one year from the grant date.
Performance Stock Units
Performance stock units (PSUs) are stock awards where the number of shares ultimately awarded is based upon the attainment of certain performance targets and total shareholder return relative to peer companies. PSUs vest at the end of a three-year service period.
| 2025 | 2024 | ||||||||||||||||||||||
| Shares | Weighted average fair value | Shares | Weighted average fair value | ||||||||||||||||||||
| Outstanding - beginning of the year | 1,081,357 | $ | 5.62 | 811,620 | $ | 9.57 | |||||||||||||||||
| Granted | 552,220 | 10.47 | 2,472,987 | 4.90 | |||||||||||||||||||
| Vested | (301,913) | 7.77 | (266,618) | 5.29 | |||||||||||||||||||
Release of deferred shares | — | — | (804,281) | 9.50 | |||||||||||||||||||
| Forfeited | (703,977) | 7.69 | (1,132,351) | 4.20 | |||||||||||||||||||
| Outstanding - end of the year | 627,687 | $ | 6.54 | 1,081,357 | $ | 5.62 | |||||||||||||||||
Stock Options
Stock options are granted at an exercise price equal to or greater than the market price of our common stock on the grant date. Options typically vest ratably over three years and expire ten years from the grant date. We did not grant any options in 2023. At December 31, 2025, there was $2 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.4 years. The intrinsic value of options outstanding at December 31, 2025 was $5 million.
The following table summarizes information about stock option activity:
| 2025 | 2024 | ||||||||||||||||||||||
| Shares | Per share weighted average exercise prices | Shares | Per share weighted average exercise prices | ||||||||||||||||||||
| Options outstanding - beginning of the year | 8,261,245 | $ | 10.87 | 9,151,645 | $ | 9.50 | |||||||||||||||||
| Granted | 689,127 | 14.00 | 1,500,000 | 9.00 | |||||||||||||||||||
| Exercised | (2,787,856) | 7.91 | (2,315,720) | 4.32 | |||||||||||||||||||
| Canceled | (184,708) | 13.59 | (74,680) | 9.43 | |||||||||||||||||||
| Options outstanding - end of the year | 5,977,808 | $ | 12.53 | 8,261,245 | $ | 10.87 | |||||||||||||||||
| Options exercisable - end of the year | 5,288,681 | $ | 12.34 | 8,261,245 | $ | 10.87 | |||||||||||||||||
The following table provides additional information about stock options outstanding and exercisable at December 31, 2025:
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||
| Range of per share exercise prices | Shares | Per share weighted-average exercise price | Weighted-average remaining contractual life | Shares | Per share weighted-average exercise price | Weighted-average remaining contractual life | ||||||||||||||||||||||||||||||||
$4.32 - $8.64 | 1,190,829 | $ | 6.39 | 3.0 years | 1,190,829 | $ | 6.39 | 3.0 years | ||||||||||||||||||||||||||||||
$9.00 - $13.16 | 3,021,210 | $ | 12.72 | 1.6 years | 2,791,501 | $ | 12.78 | 1.4 years | ||||||||||||||||||||||||||||||
$14.00 - $16.82 | 1,765,769 | $ | 16.35 | 1.2 years | 1,306,351 | $ | 16.82 | 0.1 years | ||||||||||||||||||||||||||||||
| 5,977,808 | $ | 12.53 | 1.8 years | 5,288,681 | $ | 12.34 | 1.4 years | |||||||||||||||||||||||||||||||
The following table lists the weighted average assumptions used to calculate the fair value of stock options granted:
Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Expected dividend yield | 2.8 | % | 2.2 | % | |||||||
| Expected stock price volatility | 69.6 | % | 55.3 | % | |||||||
| Risk-free interest rate | 4.0 | % | 4.3 | % | |||||||
| Expected life | 5 years | 2 years | |||||||||
| Weighted-average fair value per option granted | $4.35 | $1.64 | |||||||||
| Fair value of options granted | $3,000 | $2,460 | |||||||||
Employee Stock Purchase Plan (ESPP)
We maintain a non-compensatory ESPP that enables substantially all U.S. and Canadian employees to purchase shares of our common stock at an offering price of 90% of the average market price on the offering date. At no time will the exercise price be less than the lowest price permitted under Section 423 of the Internal Revenue Code. Employees purchased 114,597 shares and 263,635 shares in 2025 and 2024, respectively. We have reserved 3,687,284 common shares for future purchase under the ESPP.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 22, 2022 | |
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.