What was the weighted-average grant date fair value for awards granted by The Standardx in 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
The weighted-average grant date fair value for the awards granted in 2024, 2023, and 2022 was $68.77, $48.54, and $37.56, respectively.
The fair value of each SAR was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions:
The weighted-average grant date fair value for the awards granted in 2024, 2023, and 2022 was $156.75, $111.26, and $91.95, respectively. The liability and related expense for granted cash-settled RSUs are insignificant at and for the year ended December 31, 2024. The fair value of RSUs vested during the years ended December 31, 2024, December 31, 2023, and December 31, 2022 was $49 million, $55 million, and $41 million, respectively.
At December 31, 2024, the total intrinsic value of nonvested RSUs was $137 million.
PSUs—A summary of the status of the nonvested PSU awards outstanding under the LTIP is presented below:
The weighted-average grant date fair value for the awards granted in 2024, 2023, and 2022 was $159.69, $120.64, and $83.58, respectively. During the year ended December 31, 2024, $27 million of PSUs vested. During the year ended December 31, 2023, no PSUs vested. During the year December 31, 2022, $10 million of PSUs vested.
At December 31, 2024, the total intrinsic value of nonvested PSUs was $80 million, if target performance is achieved.
Unearned Compensation—Our total unearned compensation for our stock-based compensation programs at December 31, 2024 was $2 million for SARs, $33 million for RSUs, and $13 million for PSUs, which will be recognized in general and administrative expenses, distribution expenses, and transaction and integration costs over a weighted-average period of one year with respect to PSUs, two years with respect to SARs, and three years with respect to RSUs.
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the weighted-average grant date fair value varies depending on the type of award. For awards granted in 2024, the weighted-average grant date fair value was $68.77 for SARs (Stock Appreciation Rights), $156.75 for RSUs (Restricted Stock Units), and $159.69 for PSUs (Performance Stock Units). These figures represent the estimated fair value of these awards at the time they were granted.
These values are determined using valuation models like the Black-Scholes-Merton option-pricing model, which considers factors such as the expected life of the award, risk-free interest rate, volatility, and dividend yield. The fair value of RSUs that vested during the year ended December 31, 2024, was $49 million. Additionally, $27 million of PSUs vested during the same period. At the end of 2024, the total intrinsic value of nonvested RSUs was $137 million, and the total intrinsic value of nonvested PSUs was $80 million, assuming target performance is achieved.
For a prospective franchisee, understanding these values is important because they reflect the potential compensation and benefits that key employees and executives of The Standardx may receive. These stock-based compensation programs can impact the company's financial performance and should be considered when evaluating the overall financial health and stability of The Standardx. The unearned compensation for these programs at the end of 2024 was $2 million for SARs, $33 million for RSUs, and $13 million for PSUs, which will be recognized as expenses over time.