EnerSys

14. Stock-Based Compensation

As of June 29, 2025, 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$17,601 for the first quarter of fiscal 2026 and $7,062 for the first quarter of fiscal 2025. The Company recognizes compensation expense using the straight-line method over the vesting period of the awards.

During the current quarter of fiscal 2026, the Company granted to non-employee directors 3,291 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 current quarter of fiscal 2026, the Company granted to management and other key employees no non-qualified stock options, which usually vest ratably over three years from the date of the grant and 18,694 restricted stock units that vest ratably over four years from the date of grant.

Common stock activity during the current quarter of fiscal 2026 included no exercises of stock options and the vesting or release of 776 restricted stock units including non-employee director restricted stock units

As of June 29, 2025, there were 1,276,842 non-qualified stock options,926,750 restricted stock units including non-employee director restricted stock units and 1,146 TSRs outstanding.