UNITED STATES LIME & MINERALS INC Stock Compensation Disclosure
(6) Stock-Based Compensation
The Plan provides for stock options, restricted stock, and dollar-denominated cash awards, including performance-based awards. In addition to stock options, restricted stock, and cash awards, the Plan provides for the grant of stock appreciation rights, deferred stock, and other stock-based awards to directors, officers, employees, and consultants.
The Plan was amended in 2024 to increase the number of shares of Company common stock reserved for stock-based awards under the Plan and to make other changes. At December 31, 2025, the number of shares of common stock remaining available for future grants of stock options, restricted stock, or other forms of stock-based awards under the Plan was 774,101. Stock options granted under the Plan expire ten years from the date of grant and generally become exercisable, or vest, immediately. Restricted stock generally vests over periods of to three years. Upon the exercise of stock options, the Company issues common stock from its non-issued authorized or treasury shares that have been reserved for issuance pursuant to the Plan. Forfeitures are recognized in the period they occur.
The Company recorded $8,137, $4,893, and $3,182 for stock-based compensation expense related to stock options and shares of restricted stock for 2025, 2024, and 2023, respectively. The amounts included in cost of revenues were $352, $320, and $248 and in selling, general, and administrative expense were $7,785, $4,573, and $2,934, for 2025, 2024, and 2023, respectively.
A summary of the Company’s stock option and restricted stock activity and related information for the year ended December 31, 2025 and certain other information for the years ended December 31, 2025, 2024, and 2023 are as follows:
| Weighted- | Weighted- |
| |||||||||||
Average | Aggregate | Average |
| |||||||||||
Stock | Exercise | Intrinsic | Restricted | Grant-Date |
| |||||||||
| Options | Price | Value | Stock | Fair Value |
| ||||||||
Outstanding (stock options); non-vested (restricted stock) at December 31, 2024 |
| 167,000 | $ | 28.13 | $ | 17,469 | 79,007 | $ | 98.09 | |||||
Granted |
| 3,809 |
| 99.81 |
| 76 | 59,315 |
| 116.63 | |||||
Exercised (stock options); vested (restricted stock) |
| (12,000) |
| 13.34 |
| 958 | (71,559) |
| 109.33 | |||||
Forfeited |
| — |
| — |
| — | (445) |
| 59.46 | |||||
Outstanding (stock options); non-vested (restricted stock) at December 31, 2025 |
| 158,809 | $ | 30.97 | $ | 14,097 | 66,318 | $ | 102.81 | |||||
Exercisable at December 31, 2025 |
| 158,809 | $ | 30.97 | $ | 14,097 | n/a |
| n/a | |||||
| 2025 | | 2024 | | 2023 |
| ||||
Weighted-average fair value of stock options granted during the year | $ | 36.76 | $ | 27.04 | $ | 16.86 | ||||
Weighted-average remaining contractual life for stock options in years |
| 5.45 |
| 5.92 |
| 6.85 | ||||
Total fair value of stock options vested during the year | $ | 368 | $ | 744 | $ | 434 | ||||
Total intrinsic value of stock options exercised during the year | $ | 958 | $ | 3,455 | $ | 1,589 | ||||
Total fair value of restricted stock vested during the year | $ | 7,824 | $ | 3,839 | $ | 2,663 | ||||
There were no non-vested stock options at December 31, 2025, and the weighted-average remaining contractual life of the outstanding and exercisable stock options at such date was 5.45 years. The total compensation cost not yet recognized for restricted stock at December 31, 2025 was $6,312, which will be recognized over the weighted average of 1.03 years.
The fair value for the stock options was estimated at the date of grant using a lattice-based option valuation model, with the following weighted-average assumptions for the 2025, 2024, and 2023 grants: risk-free interest rates of 3.72% in 2025, 4.57% in 2024, and 3.41% to 3.84% (weighted average 3.74%) in 2023; a dividend yield of 0.24% in 2025, 0.31% in 2024, and 0.35% to 0.48% (weighted average 0.39%) in 2023; and a volatility factor of .358 in 2025, .406 in 2024, and .389 to .400 (weighted average .397) in 2023, based on the daily per-share closing prices for 5 years preceding the date of issuance. In addition, the fair value of these options was estimated based on an expected life of 5 years. The fair value of restricted stock is based on the closing per-share price of the Company’s common stock on the date of grant.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2017 | Mar 2, 2018 | |
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.