Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation
13. STOCK-BASED COMPENSATION
The Company has a stock-based compensation plan available to grant non-qualified stock options, incentive stock options, stock-settled appreciation rights (“SSARs”), RSUs, performance-vesting restricted stock units (“PSUs”) and/or other stock-based awards to key employees and non-employee directors. Under the Wyndham Hotels & Resorts, Inc. 2018 Equity and Incentive Plan (“Stock Plan”), which became effective on May 14, 2018, a maximum of 10.0 million shares of common stock may be awarded. As of March 31, 2022, 5.1 million shares remained available.
During March 2022, the Company granted incentive equity awards totaling $27 million to key employees and senior officers in the form of RSUs. The RSUs generally vest ratable over a period of four years based on continuous service. Additionally, the Company approved incentive equity awards to key employees and senior officers in the form of PSUs with a maximum grant value of $12 million. The PSUs generally cliff vest on the third anniversary of the grant date based on continuous service with the number of shares earned (0% to 200% of the target award) depending on the extent of the Company achieving certain performance metrics.
Incentive Equity Awards Granted by the Company
The activity related to the Company’s incentive equity awards for the three months ended March 31, 2022 consisted of the following:
RSUs
PSUs
Number of
RSUs
Weighted
Average
Grant Price
Number
of
PSUs
Weighted
Average
Grant Price
Balance as of December 31, 2021 1.2  $ 60.37  0.3  $ 57.51 
Granted (a)
0.3  82.74  0.1 
(b)
 82.74 
Vested
 (0.3) 52.99  —  — 
Canceled
 —  —  (0.1) 52.71 
Balance as of March 31, 2022 1.2 
(c)
 $ 67.05  0.3 
(d)
 $ 73.04 
______________________
(a)Represents awards granted by the Company primarily in March 2022.
(b)Represents awards granted by the Company at the maximum achievement level of 200% of target payout. Actual shares that may be issued can range from 0% to 200% of target.
(c)RSUs outstanding as of March 31, 2022 have an aggregate unrecognized compensation expense of $70 million, which is expected to be recognized over a weighted average period of 3.0 years.
(d)PSUs outstanding as of March 31, 2022 have an aggregate maximum potential unrecognized compensation expense of $21 million, which may be recognized over a weighted average period of 2.3 years based on attainment of targets.
There were no stock options granted in 2022. The activity related to stock options for the three months ended March 31, 2022 consisted of the following:
Number of Options
Weighted Average Exercise Price
Weighted Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2021 1.1  $ 56.04 
Granted
 —  — 
Exercised —  — 
Canceled —  — 
Outstanding as of March 31, 2022
 1.1  $ 55.93  4.4 $ 31 
Unvested as of March 31, 2022
 0.5 
(a)
 $ 56.13  4.3 $ 13 
Exercisable as of March 31, 2022
 0.6  $ 55.79  4.4 $ 18 
______________________
(a)Unvested options as of March 31, 2022 are expected to vest over time and have an aggregate unrecognized compensation expense of $4 million, which will be recognized over a weighted average period of 2.0 years.
Stock-Based Compensation ExpenseStock-based compensation expense was $8 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.