Company: IR
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006391
Chunk: 109

Company: Ingersoll Rand Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 109
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4, 2023 and 2022, respectively.The following assumptions were used to estimate the fair value of options granted during the years ended December 31, 2024, 2023 and 2022.202420232022Expected life of options (in years)6.3 - 7.56.3 - 7.56.3Risk-free interest rate3.7% - 4.3%3.8% - 4.6%1.9% - 3.9%Assumed volatility34.9% - 35.2%35.6% - 36.6%37.1% - 38.3%Expected dividend rate0.1%0.0% - 0.1%0.1% - 0.2%Restricted Stock Unit AwardsRestricted stock units are typically granted in the first quarter of the year to employees and non-employee directors based on the market price of the Company’s common stock on the grant date and recognized in compensation expense over the vesting period. Eligible employees were also granted restricted stock units, during the third quarter of 2020, that vested ratably over two years, subject to the passage of time and the employee’s continued employment during such period. In some instances, such as death, awards may vest concurrently with or following an employee’s termination.A summary of the Company’s restricted stock unit activity for the year ended December 31, 2024 is presented in the following table (underlying shares in thousands).SharesWeighted-Average Grant-Date Fair ValueNon-vested as of December 31, 2023957 $52.18 Granted433 90.94 Vested(469)47.96 Forfeited(87)68.20 Non-vested as of December 31, 2024834 73.00 Performance Share Unit Awards (“PSUs”)Annually, during the first quarter, the Company grants TSR PSUs to certain employees in which the number of shares issued at the end of the performance period is determined by the Company’s total shareholder return percentile rank versus the S&P 500 index for the three year performance period. The grant date fair value of these awards is determined using a Monte Carlo simulation pricing model and compensation cost is recognized straight-line over a three year period.

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During the third quarter of 2022, the Company granted Special TSR PSUs to its Chairman and CEO under which the market condition is