Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 134

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 134
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 then the plan participants have the potential to earn additional shares of common stock, which cannot exceed 50% and 100% of the original grant for the awards granted in 2024 and 2023, respectively. The fair value of these PSUs is based upon the market price of Conduent's common stock on the date of the grant. Compensation expense is recognized over the vesting period, which is 2.75 years from the date of grant, based on management's estimate of the number of shares expected to vest. If the stated targets are not met, any recognized compensation cost would be reversed.•PSUs that vest contingent upon the increase of Conduent’s stock price to certain levels over a 2.75 years period from the date of grant. The number of shares eligible to vest may be adjusted upward or downward by 50% based on total shareholder return, which measures the Company’s stock performance relative to the stock performance of the Company’s proxy peers over the measurement period. These PSUs also have a service requirement that must be met for them to vest. The fair value of these PSUs is based upon a Monte Carlo simulation. Compensation expense is recognized over the vesting period based on management's estimate of the number of shares expected to vest. The PSUs granted in 2022 were canceled at December 31, 2024 as the performance measures were not met. Summary of Stock-based Compensation Activity 202420232022(shares in thousands)SharesWeightedAverage GrantDate FairValueSharesWeightedAverage GrantDate FairValueSharesWeightedAverage GrantDate FairValueRestricted Stock Units / SharesOutstanding at January 15,031 $4.02 3,165 $5.39 3,792 $4.57 Granted3,912 3.36 5,418 3.51 3,431 5.15 Vested(3,498)3.87 (3,103)4.49 (3,238)4.38 Canceled(1,058)3.53 (449)4.26 (820)4.56 Outstanding at December 314,387 3.67 5,031 4.02 3,165 5.39 Performance Stock Units / SharesOutstanding at January 15,013 $3.97 3,097 $5.16 3,609 $4.71 Granted3,848