EnerSys

15. Stock-Based Compensation

As of December 29, 2024, the Company maintains the 2023 Equity Incentive Plan (“2023 EIP”). The 2023 EIP reserved 3,614,500 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market condition-based on total shareholder return (“TSR”) and performance condition-based share units (“PSU”) and other forms of equity-based compensation.

The Company recognized stock-based compensation expense associated with its equity incentive plans of $8,076 for the third quarter of fiscal 2025 and $9,817 for the third quarter of fiscal 2024. Stock-based compensation expense was $20,263 and $22,894 for the nine months of fiscal 2025 and fiscal 2024, respectively. The Company recognizes compensation expense using the straight-line method over the vesting period of the awards.

During the nine months of fiscal 2025, the Company granted to non-employee directors 26,969 restricted stock units, under the deferred compensation plan for non-employee directors. The awards vest immediately upon the date of grant and are settled in shares of common stock.

During the nine months of fiscal 2025, the Company granted to management and other key employees 252,513 non-qualified stock options that vest ratably over three years from the date of the grant and 314,487 restricted stock units that vest ratably over four years from the date of grant.

Common stock activity during the nine months of fiscal 2025 included the exercise of 108,451 stock options and the vesting or release of 306,932 restricted stock units including non-employee director restricted stock units

As of December 29, 2024, there were 1,334,171 non-qualified stock options,1,039,825 restricted stock units including non-employee director restricted stock units and 1,140 TSRs outstanding.