Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 42

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 42
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 This presentation is consistent with the earnings per share computations that result for each class of common stock utilizing the two-class method as described in ASC Topic 260, “Earnings Per Share.”  The two-class method is an earnings allocation formula which determines earnings per share for each class of common stock according to the dividends declared (or accumulated) and participation rights in the undistributed earnings.In applying the two-class method, we have determined that the undistributed earnings should be allocated to each class on a pro rata basis after consideration of all of the participation rights of the Class B shares (including voting and conversion rights) and our history of paying dividends equally to each class of common stock on a per share basis.The Company’s certificate of incorporation allows the board of directors to declare a cash dividend to Class A shares without declaring equal dividends to the Class B shares.  Class B shares’ voting and conversion rights, however, effectively allow the Class B shares to participate in dividends equally with Class A shares on a per share basis.The Class B shares are the only shares with voting rights.  The Class B shareholders are therefore able to exercise voting control with respect to all matters requiring stockholder approval, including the election of or removal of directors.  The board of directors has historically declared and the Company historically has paid equal per share dividends on both the Class A and Class B shares.  Each class has participated equally in all dividends declared since 1987.

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KELLY SERVICES, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

In addition, Class B shares are convertible, at the option of the holder, into Class A shares on a one-for-one basis.  As a result, Class B shares can participate equally in any dividends declared on the Class A shares by exercising their conversion rights.Dividends paid per share for Class A and Class B common stock were $0.30 for 2024, $0.30 for 2023 and $0.275 for 2022.

16. Stock-Based CompensationUnder the Equity Incentive Plan, amended and restated February 15, 2017 and approved by the stockholders of the Company on May 10, 2017 (the “EIP”), the Company may grant to key employees restricted stock and performance awards associated with the Company’s Class A stock.  The amended EIP provides that the maximum number of shares available for grants is 4.7 million.  Shares available for future grants at year-end