Stock-Based Compensation |
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| Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans
The Company issues stock-based compensation awards under the 2021 Omnibus Incentive Plan (“Omnibus Incentive Plan”), and prior to the IPO the Company issued stock-based compensation under the HireRight GIS Group Holdings LLC Equity Incentive Plan (“Equity Plan”). At March 31, 2024, the total number of shares authorized for issuance under the Omnibus Incentive Plan was 16.9 million shares and 11.2 million shares remain available for issuance.
Stock-Based Compensation Expense
Stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows:
Stock Options under the Equity Plan
For stock options issued under the Equity Plan that were outstanding and unvested as of March 31, 2024, the Company expects to recognize future compensation expense of $1.4 million over a weighted average remaining vesting period of 1.02 years.
Awards under the Omnibus Incentive Plan
For options under the Omnibus Incentive Plan outstanding and unvested as of March 31, 2024, the Company expects to recognize future compensation expense of $3.5 million over a weighted average remaining vesting period of 1.7 years.
On March 13, 2024, the Company granted 229,519 restricted stock units (“RSU”) under the Omnibus Incentive Plan, of which 176,553 were performance RSUs and 52,966 were time-vesting RSUs. The weighted average grant date fair value of all RSUs granted was $14.16 per unit. The performance RSUs vest based upon the achievement of various conditions including observable performance targets related to the Company’s operations and are also subject to continued service. The remaining RSUs vest over a period of approximately four years subject to continued service. The expected stock-based compensation expense for the performance RSUs is $2.5 million and is expected to be recognized over the period from grant date through December 31, 2026. The expected stock-based compensation expense for the remaining RSUs is $0.8 million and is expected to be recognized over the period from grant date through May 20, 2028.
On March 20, 2023, the Company approved a grant of a total of 2,561,275 performance RSUs. A total of 1,116,323 of these performance RSUs had a grant-date fair value of $5.67 per unit based on a Monte Carlo valuation model and may vest based upon the achievement of a market condition related to achievement of stock price targets of the Company's common stock, subject to continued service. The remaining, 1,444,952, performance RSUs granted on March 20, 2023, had a grant date fair value of $10.90 per unit and based upon 2023 adjusted EBITDA results, 97.25% of these performance RSUs qualified for time-based vesting, half on March 12, 2025 and half on March 12, 2026, subject to continued service.
For RSUs outstanding and unvested as of March 31, 2024, the Company expects to recognize future compensation expense of $23.1 million over a weighted average remaining vesting period of 2.0 years.
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