SIGNET JEWELERS LTDSIG
SIGNET JEWELERS LTD Stock Compensation Disclosure
Share-based compensation
Signet operates a share-based compensation plan as further described below. Share-based compensation expense and the associated tax benefits recognized in the consolidated statements of operations are as follows for Fiscal 2026, Fiscal 2025 and Fiscal 2024:
| (in millions) | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | ||||||||||||||
Share-based compensation expense | $ | 26.9 | $ | 22.2 | $ | 41.1 | |||||||||||
Income tax benefit | $ | (3.9) | $ | (2.2) | $ | (5.4) | |||||||||||
As of January 31, 2026, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows:
| (in millions) | Unrecognized compensation cost | Weighted average period | |||||||||
Omnibus Plan | $ | 34.8 | 1.6 years | ||||||||
The Company satisfies share option exercises and the vesting of RSAs, RSUs, and PSUs under its plans with the issuance of treasury shares.
Omnibus Plan
In June 2018, Signet’s shareholders approved and the Company adopted the Signet Jewelers Limited 2018 Omnibus Incentive Plan (as amended to the date hereto, the “2018 Omnibus Plan”). Upon adoption of the 2018 Omnibus Plan, shares that were previously available under the Signet Jewelers Limited Omnibus Incentive Plan, which was approved in June 2009 (the “2009 Omnibus Plan”, and collectively with the 2018 Omnibus Incentive Plan, the “Omnibus Plans”) are no longer available for future grants and were not transferred to the 2018 Omnibus Plan. Awards that may be granted under the 2018 Omnibus Plan include RSAs, RSUs, PSUs, common shares, stock options, stock appreciation rights and other stock-based awards. The Fiscal 2026, Fiscal 2025 and Fiscal 2024 annual awards granted under the Omnibus Plans have two elements: RSUs and PSUs. The PSUs awarded in Fiscal 2026 include three performance measures: revenue, adjusted operating margin (defined as adjusted operating income divided by revenue) and free cash flow (defined as cash flow from operations less capital expenditures). The PSUs awarded in Fiscal 2025 and Fiscal 2024 include two performance measures: revenue and free cash flow. For the performance measures, cumulative results achieved during the relevant -year performance period are compared to target metrics established in the underlying grant agreements, as approved by the Human Capital Management & Compensation Committee of the Board.
The time-based stock options generally vest on the third anniversary of the grant date and have a ten-year contractual term, subject to continued employment. RSUs generally have a or three-year vesting period, subject to continued service or employment. The 2018 Omnibus Plan permits the grant of awards to employees, non-employee directors and consultants for up to 6,975,000 common shares.
Beginning in Fiscal 2026, RSUs have dividend rights when granted and the fair value of these awards are based on the market price of the Company’s stock at grant date. RSUs granted prior to Fiscal 2026, as well as PSUs granted during Fiscal 2026, Fiscal 2025 and Fiscal 2024, do not have dividend rights until vesting, and thus the grant date fair value of these awards are adjusted based on the dividend yield and term of the awards. As of January 31, 2026, accrued dividends on RSUs of $0.6 million were recorded in accrued expenses and other current liabilities in the consolidated balance sheet. The significant assumptions utilized to estimate the weighted-average fair value of RSUs and PSUs granted under the 2018 Omnibus Plan are as follows:
| Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||||||||||||||
Share price | $ | 61.54 | $ | 97.49 | $ | 62.71 | |||||||||||
Expected term | 2.8 years | 2.7 years | 2.9 years | ||||||||||||||
Dividend yield | 1.3 | % | 1.2 | % | 0.9 | % | |||||||||||
Fair value | $ | 61.22 | $ | 94.83 | $ | 61.06 | |||||||||||
Only RSUs and PSUs were granted during Fiscal 2026, Fiscal 2025 and Fiscal 2024.
The expected term utilized is the length of time the awards are expected to be outstanding, primarily based on the vesting period and expiration date of the awards. The dividend yield is based on a combination of historical actual dividend yields and projected dividend yields.
The Fiscal 2026 activity for RSUs and PSUs granted under the Omnibus Plans is as follows:
| (in millions, except per share amounts) | Number of shares | Weighted average grant date fair value | Weighted average remaining contractual life | Intrinsic value (1) | |||||||||||||||||||
| Outstanding at February 1, 2025 | 1.7 | $ | 77.77 | 1.4 years | $ | 100.2 | |||||||||||||||||
| Fiscal 2026 activity: | |||||||||||||||||||||||
Granted | 1.1 | 61.22 | |||||||||||||||||||||
| Vested | (0.5) | 79.33 | |||||||||||||||||||||
Lapsed or forfeited | (0.3) | 70.86 | |||||||||||||||||||||
| Outstanding at January 31, 2026 | 2.0 | $ | 69.69 | 1.3 years | $ | 182.8 | |||||||||||||||||
(1) Intrinsic value for outstanding RSUs and PSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. There were no RSAs outstanding as of January 31, 2026.
The Fiscal 2026 activity for stock options previously granted and still outstanding under the Omnibus Plans is as follows:
| (in millions, except per share amounts) | No. of shares | Weighted average exercise price | Weighted average remaining contractual life | Intrinsic value (1) | |||||||||||||||||||
| Outstanding at February 1, 2025 | 0.1 | $ | 37.66 | 3.4 years | $ | 1.3 | |||||||||||||||||
| Fiscal 2026 activity: | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||
| Outstanding at January 31, 2026 | 0.1 | $ | 38.91 | 2.3 years | $ | 1.9 | |||||||||||||||||
(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.
The following table summarizes additional information about awards granted under the Omnibus Plans:
| (in millions) | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | ||||||||||||||
Total intrinsic value of awards vested | $ | 25.8 | $ | 29.0 | $ | 121.8 | |||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Mar 19, 2025 | |
| 2022 | Mar 17, 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.