DENTSPLY SIRONA Inc.XRAY
DENTSPLY SIRONA Inc. Stock Compensation Disclosure
STOCK COMPENSATION
The Company maintains the 2024 Omnibus Incentive Plan (the “Plan”), which was approved by the Company’s stockholders on May 22, 2024 (the “Effective Date”). The Company’s stockholders previously approved the 2016 Omnibus Incentive Plan (the “Prior Plan”). After the Effective Date, no new awards may be granted under the Prior Plan, although awards granted under the Prior Plan prior to the Effective Date remain outstanding and remain subject to the terms and conditions of, and continue to be governed by, the Prior Plan. Under the Plan, the Company may grant stock options, share appreciation rights, restricted shares, restricted share units, share bonuses, other share-based awards, or cash awards, collectively referred to as “Awards.” The Company’s non-qualified stock options (“NQSOs”) are granted at exercise prices that are at least equal to the closing stock price on the date of grant. Under the Plan, 14.5 million shares are initially available for Awards, less (i) one share for every one share that was subject to an option or share appreciation right granted after March 26,
2024 under the Prior Plan and (ii) 2.7 shares for every one share that was subject to an award other than an option or share appreciation right granted after March 26, 2024 under the Prior Plan (such adjusted amount, the “Share Pool”). Under the Plan, any shares that are subject to options or share appreciation rights shall be counted against the Share Pool as one share for every one share granted, and any shares that are subject to awards other than options or share appreciation rights shall be counted against the Share Pool as 2.7 shares for every one share granted. Shares granted under either the Plan or the Prior Plan which are cancelled or forfeited are added back to the count of shares available for Awards. The number of shares available for grant at December 31, 2025 is 18 million.
The amounts of stock-based compensation expense recorded in the Company’s Consolidated Statements of Operations were as follows:
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Cost of products sold | $ | 2 | $ | 3 | $ | 4 | ||||||||||||||
| Selling, general, and administrative expense | 28 | 35 | 36 | |||||||||||||||||
| Research and development expense | 2 | 2 | 4 | |||||||||||||||||
| Restructuring and other costs | — | (1) | 2 | |||||||||||||||||
| Total stock-based compensation expense | $ | 32 | $ | 39 | $ | 46 | ||||||||||||||
| Related deferred income tax benefit | $ | 5 | $ | 7 | $ | 8 | ||||||||||||||
The Company uses the Black-Scholes option-pricing model to estimate the fair value of each option awarded. The average assumptions used to determine compensation cost for the Company’s NQSOs issued were as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Weighted average fair value per NQSO | $ | 3.14 | $ | 9.91 | $ | 12.64 | ||||||||||||||
| Expected dividend yield | 4.77 | % | 1.92 | % | 1.45 | % | ||||||||||||||
| Risk-free interest rate | 3.81 | % | 4.28 | % | 4.27 | % | ||||||||||||||
| Expected volatility | 36.3 | % | 35.7 | % | 35.8 | % | ||||||||||||||
| Expected life (years) | 4.12 | 4.26 | 4.76 | |||||||||||||||||
The total intrinsic value of NQSOs exercised for the years ended December 31, 2025, 2024 and 2023 was insignificant.
The NQSO transactions for the year ended December 31, 2025 were as follows:
| Outstanding | Exercisable | Expected to Vest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except per share amounts) | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | 2.2 | $ | 45.37 | $ | — | 1.4 | $ | 50.27 | $ | — | 0.8 | $ | 37.06 | $ | — | |||||||||||||||||||||||||||||||||||||||||
| Granted | 6.4 | 13.76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercised | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cancelled | (0.6) | 47.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forfeited | (1.8) | 19.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | 6.2 | $ | 19.88 | $ | 1 | 1.1 | $ | 48.74 | $ | — | 5.1 | $ | 13.91 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
There were 5.1 million NQSOs unvested at December 31, 2025. The remaining unamortized compensation cost related to NQSOs is $13 million, which will be expensed over the weighted average remaining vesting period of the options, which is 2.4 years.
The weighted average remaining contractual term of all outstanding options, exercisable options, and options expected to vest are 8.7 years, 4.6 years and 9.5 years, respectively.
Information about NQSOs outstanding as of December 31, 2025 is provided below:
| Outstanding | Exercisable | |||||||||||||||||||||||||||||||||||||
Number Outstanding at December 31, 2025 | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Number Exercisable at December 31, 2025 | Weighted Average Exercise Price | ||||||||||||||||||||||||||||||||||
| Range of Exercise Prices | ||||||||||||||||||||||||||||||||||||||
| (in millions, except per share amounts and life) | ||||||||||||||||||||||||||||||||||||||
| $ | 5.01 | - | $10.00 | — | 0.0 | $ | — | — | $ | — | ||||||||||||||||||||||||||||
| $ | 10.01 | - | $20.00 | 5.0 | 9.6 | $ | 13.09 | — | $ | — | ||||||||||||||||||||||||||||
| $ | 20.01 | - | $30.00 | — | 7.9 | $ | 28.39 | — | $ | 28.39 | ||||||||||||||||||||||||||||
| $ | 30.01 | - | $40.00 | 0.5 | 7.7 | 36.99 | 0.4 | $ | 37.49 | |||||||||||||||||||||||||||||
| $ | 40.01 | - | $50.00 | 0.3 | 3.3 | 47.53 | 0.3 | $ | 47.60 | |||||||||||||||||||||||||||||
| $ | 50.01 | - | $60.00 | 0.3 | 4.1 | 55.69 | 0.3 | $ | 55.69 | |||||||||||||||||||||||||||||
| $ | 60.01 | - | $70.00 | 0.1 | 1.0 | 62.37 | 0.1 | $ | 62.37 | |||||||||||||||||||||||||||||
| 6.2 | 1.1 | |||||||||||||||||||||||||||||||||||||
The unvested RSUs for the year ended December 31, 2025 were as follows:
| Unvested Restricted Stock Units | ||||||||||||||
| Shares | Weighted Average Grant Date Fair Value | |||||||||||||
| (in millions, except per share amounts) | ||||||||||||||
Unvested at December 31, 2024 | 3.9 | $ | 37.11 | |||||||||||
| Granted | 4.5 | 15.64 | ||||||||||||
| Vested | (0.7) | 35.49 | ||||||||||||
| Forfeited | (2.3) | 23.50 | ||||||||||||
Unvested at December 31, 2025 | 5.4 | $ | 19.95 | |||||||||||
The weighted average grant date fair value of RSUs granted for the year ended December 31, 2023 was $42.95. The unamortized compensation cost related to RSUs is $26 million, which will be expensed over the remaining weighted average restricted period of the RSUs, which is 1.7 years.
The total fair value of shares vested for the years ended December 31, 2025, 2024 and 2023 was $31 million, $46 million and $42 million, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 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.