Stock-Based Compensation |
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| Stock-Based Compensation |
13.Stock-Based Compensation Our 2021 Equity Incentive Plan allows for the grant of, among other types of awards, stock options; restricted stock; RSUs; and PSUs. Restricted Stock Units RSU activity during the period was as follows:
The RSUs generally vest in the following installments: (i) at the first anniversary of the award date, (ii) at the second anniversary of the award date, and (iii) at the third anniversary of the award date. As of March 31, 2025, approximately $32.9 million of compensation cost related to unvested RSUs remained to be recognized. The cost is expected to be recognized over a weighted-average period of 1.5 years. Performance-Based Restricted Stock Units PSU activity during the period was as follows:
On December 31, 2024, the performance period ended for 107,225 PSUs previously issued. Each PSU was converted into 1.57 shares representing a total of 168,742 shares of Class A common stock that were issued in February 2025. The PSUs granted in 2025 were granted to management under the 2021 Equity Incentive Plan and have the following performance criteria:
The vesting and payout of the PSUs occur when the related service condition is completed, which is approximately three years after the beginning of the first performance period. The PSUs can be paid out in either Class A common stock or cash, at our election. Dividends accrue on PSUs and are paid upon vesting. As of March 31, 2025, approximately $14.6 million of compensation cost related to unvested PSUs remained to be recognized. The cost is expected to be recognized over a weighted-average period of 1.7 years. The grant date fair value was determined using the Monte Carlo simulation method and is expensed ratably over the service period. Expected volatilities used in the fair value simulation were estimated using historical periods consistent with the remaining performance periods. The risk-free rate was based on the U.S. Treasury rate for a term commensurate with the expected life of the grant. We used the following assumptions to estimate the fair value of PSUs granted during the three months ended March 31, 2025:
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