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Employee Benefit Plans
3 Months Ended
Dec. 31, 2023
Compensation Related Costs [Abstract]  
Compensation Related Costs, General EMPLOYEE BENEFIT PLANS
Stock-Based Compensation

The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to executive officers, other key employees and non-management directors. Restricted stock unit (RSU) awards may be based on performance (performance-based) or on service over a requisite time period (time-based). RSU equity awards represent the contingent right to receive one share of the Company’s common stock per RSU if the vesting conditions and/or performance criteria are satisfied. The RSUs have no dividend or voting rights until vested.

In October 2023, the Company granted 277,779 performance-based RSUs to its executive officers. These awards vest at the end of a three-year performance period ending September 30, 2026. The number of units that ultimately vest depends on the Company’s relative position as compared to its peers in achieving certain performance criteria and can range from 0% to 200% of the number of units granted. The performance criteria for the October 2023 grants are total shareholder return, return on assets and operating margin. The grant date fair value of these equity awards was $108.74 per unit. Compensation expense related to this grant was $2.5 million in the three months ended December 31, 2023 based on an estimate of the Company’s performance against its peer group, the elapsed portion of the performance period and the grant date fair value of the award.

During the three months ended December 31, 2023, the Company granted approximately 150,000 time-based RSUs. The weighted average grant date fair value of these equity awards was $118.42 per unit, and they vest annually in equal installments over periods of three to five years. Compensation expense related to these grants was $13.9 million in the three months ended December 31, 2023, which included $13.8 million of expense recognized for employees that were retirement eligible on the date of grant.

Total stock-based compensation expense related to the Company’s performance-based and time-based RSUs was $37.3 million during the three months ended December 31, 2023 compared to $21.1 million during the three months ended December 31, 2022.