LPL Financial Holdings Inc
For the period ended Mar 31, 2024. Filed May 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
12 - S
NOTE 12 -SHARE-BASED COMPENSATION
In May 2021, the Company adopted its 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, deferred stock units, performance stock units and other equity-based compensation to the Company’s employees, non-employee directors and other service providers. The 2021 Plan serves as the successor to the Company’s 2010 Omnibus Equity Incentive Plan (the “2010 Plan”). Following the adoption of the 2021 Plan, the Company is no longer making grants under the 2010 Plan, and the 2021 Plan is the only plan under which equity awards are granted. However, awards previously granted under the 2010 Plan will remain outstanding until vested, exercised or forfeited, as applicable.
There were 17,754,197 shares authorized for grant under the 2021 Plan and 11,656,366 shares remaining available for future issuance at March 31, 2024.
Table of Contents
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements (Unaudited)
Stock Options and Warrants
The Company has not granted stock options or warrants since 2019. The following table summarizes the Company’s stock option and warrant activity as of and for the three months ended March 31, 2024:
| Number ofShares | Weighted-AverageExercise Price | Weighted-AverageRemainingContractual Term(Years) | AggregateIntrinsicValue(In thousands) | |
|---|---|---|---|---|
| Outstanding — December 31, 2023 | 546,820 | $54.81 | ||
| Granted | — | $— | ||
| Exercised | (119,010) | $47.30 | ||
| Forfeited and Expired | — | $— | ||
| Outstanding — March 31, 2024 | 427,810 | $56.90 | 3.59 | $88,684 |
| Exercisable — March 31, 2024 | 427,810 | $56.90 | 3.59 | $88,684 |
| Exercisable and expected to vest — March 31, 2024 | 427,810 | $56.90 | 3.59 | $88,684 |
The following table summarizes information about outstanding stock options and warrants as of March 31, 2024:
| Outstanding · Exercisable | |||||
|---|---|---|---|---|---|
| Range of Exercise Prices | Number ofShares | Weighted-AverageExercisePrice | Weighted-AverageRemaining Life(Years) | Number ofShares | Weighted-AverageExercisePrice |
| $19.85 - $25.00 | 60,485 | $19.85 | 1.97 | 60,485 | $19.85 |
| $25.01 - $35.00 | — | $— | 0.00 | — | $— |
| $35.01 - $45.00 | 93,509 | $39.48 | 2.85 | 93,509 | $39.48 |
| $45.01 - $65.00 | 6,687 | $45.55 | 0.93 | 6,687 | $45.55 |
| $65.01 - $75.00 | 130,005 | $65.50 | 3.77 | 130,005 | $65.50 |
| $75.01 - $80.00 | 137,124 | $77.53 | 4.75 | 137,124 | $77.53 |
| 427,810 | $56.90 | 3.59 | 427,810 | $56.90 | |
The Company recognizedno share-based compensation expense related to the vesting of stock options awarded to employees and officers during the three months ended March 31, 2024 and 2023. As of March 31, 2024, there was no unrecognized compensation cost related to non-vested stock options.
Restricted Stock and Stock Units
The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the three months ended March 31, 2024:
| Restricted Stock Awards · Stock Units | |||||
|---|---|---|---|---|---|
| Number ofShares · Weighted-AverageGrant-DateFair Value · Number ofUnits · Weighted-AverageGrant-DateFair Value | |||||
| Outstanding — December 31, 2023 | 1,568 | $187.93 | 776,604 | $205.51 | |
| Granted | — | $— | 397,845 | $262.65 | |
| Vested | — | $— | (352,203) | $190.54 | |
| Forfeited | — | $— | (6,979) | $229.66 | |
| Outstanding — March 31, 2024 | 1,568 | $187.93 | 815,267 | (1) | $239.66 |
| Expected to vest — March 31, 2024 | 1,568 | $187.93 | 644,042 | $258.09 | |
(1) Includes 90,412 vested and undistributed deferred stock units.
Table of Contents
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements (Unaudited)
The Company grants restricted stock awards and deferred stock units to its directors and restricted stock units and performance stock units to its employees and officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $20.3 million and $16.2 million of share-based compensation expense related to the vesting of these restricted stock awards and stock units during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, total unrecognized compensation cost for restricted stock awards and stock units was $138.4 million, which is expected to be recognized over a weighted-average remaining period of 2.23 years.
The Company also grants restricted stock units to its advisors and to institutions. The Company recognized share-based compensation expense of $0.7 million related to the vesting of these awards during both the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, total unrecognized compensation cost for restricted stock units granted to advisors and institutions was $4.5 million, which is expected to be recognized over a weighted-average remaining period of 1.98 years.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.