PULTEGROUP INC/MI/PHM

PULTEGROUP INC/MI/ Stock Compensation Disclosure

10-KFiled Feb 4, 20262 min read
Stock compensation plans
We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including time-based and performance-based restricted share units ("RSUs") to key employees for periods not to exceed ten years. Non-employee directors are awarded an annual distribution of common shares. RSUs represent the right to receive an equal number of common shares and are converted into common shares upon distribution. Time-based RSUs generally cliff vest after three years, and RSU holders earn cash or accrued dividends during the vesting period. Performance-based RSUs vest upon attainment of the stated performance targets and minimum service requirements and are converted into common shares upon distribution. As of December 31, 2025, there were 9.9 million shares that remained available for grant under the plan. Our stock compensation expense is presented below ($000's omitted):

202520242023
RSUs$33,388 $31,821 $28,112 
Other long-term incentive plans21,435 22,869 20,088 
$54,823 $54,690 $48,200 
RSUs

A summary of RSUs is presented below (000’s omitted, except per share data):

 
 202520242023
 SharesWeighted-
Average
Per Share
Grant Date
Fair Value		SharesWeighted-
Average
Per Share
Grant Date
Fair Value		SharesWeighted-
Average
Per Share
Grant Date
Fair Value
Outstanding, beginning of
       year		1,431 $67 1,659 $54 1,628 $48 
Granted317 111 307 107 714 59 
Distributed(573)55 (496)46 (550)44 
Forfeited(40)90 (39)66 (133)52 
Outstanding, end of year1,135 $85 1,431 $67 1,659 $54 

During 2025, 2024, and 2023, the total fair value of shares vested during the year was $66.2 million, $52.6 million, and $33.8 million, respectively. Unamortized compensation cost related to share awards was $29.3 million at December 31, 2025. These costs will be expensed over a weighted-average period of approximately two years. Additionally, there were 0.2 million deferred shares at December 31, 2025, that had vested but had not yet been paid out because the payout date had been deferred by the holders.

Other long-term incentive plans

We maintain long-term incentive plans for senior management and other employees that provide awards based on the achievement of stated performance targets over three-year periods. Awards are denominated in either restricted stock units or dollars that are settled in common shares based on the stock price at the end of the performance period. We recognize the expense associated with the awards based on the probability of achieving the stated performance targets at each reporting period.

Historical Timeline

Fiscal YearFiled
2025Feb 4, 2026Showing above
2024Feb 6, 2025
2023Feb 5, 2024
2022Feb 6, 2023
2021Feb 7, 2022
2020Feb 2, 2021
2019Jan 30, 2020
2018Jan 31, 2019
2017Feb 7, 2018
2016Feb 1, 2017
2015Feb 8, 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.

Other Available Disclosures

Income TaxesRevenueFair ValueSegmentsDebtCommitmentsNew StandardsPay vs Performance