Company: BWNB
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001630805-25-000007
Chunk: 94

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 94
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 Letter of Credit fees

NOTE 18 – STOCK-BASED COMPENSATION

Stock optionsThere were no stock options awarded in 2024. As of December 31, 2024, there were 0.1 million shares outstanding and exercisable, at a weighted average exercise price of $70.45 and $70.44, respectively, and a weighted average remaining contractual term of 2.4 years.

97

Restricted stock unitsNon-vested restricted stock units activity for the year ended December 31, 2024 is as follows:(share data in thousands)Number of sharesWeighted-average grant date fair valueNon-vested at beginning of period1,332 $7.64 Granted1,659 1.21 Vested(975)5.92 Cancelled/forfeited(276)8.57 Non-vested at end of period1,740 $2.33 As of December 31, 2024, total compensation expense not yet recognized related to non-vested restricted stock units was $3.5 million and the weighted-average period in which the expense is expected to be recognized is 1.6 years.Restricted stock units with market conditionsIn July 2022, we granted market-based RSUs to certain members of management. The number of market-based RSUs granted was 0.96 million. The RSUs will vest if our closing stock price on the NYSE is equal to or higher than the Stock Price Goal of $12.00 per share during the performance period, which expires on the 5th anniversary of the Grant Date. The $6.70 grant date fair value per market-based RSU was determined using a Monte Carlo simulation approach. Compensation expense for awards with market conditions is recognized over the derived service period using cost of equity as the drift rate in the simulation for estimating the dividend service period and is not reversed if the market condition is not met.We used the following assumptions to determine the fair value of the restricted stock units with market conditions as of the grant date:Risk free interest rate2.7 %Volatility59.0 %Cost of equity17.4 %Performance period5 yearsDerived service period0.78 yearsRestricted stock units with market conditions activity for the year ended December 31, 2024 was as follows:(share data in thousands)Number of sharesWeighted-average grant date fair valueNon-vested at beginning of period760 $6.70 Cancelled/