Share-based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

The Company has the 2020 Omnibus Incentive Plan under which restricted stock units and stock options are granted to team members and directors of the Company and its affiliates. The fair value of the share-based awards is estimated on the date of grant based on the market price of the underlying common stock and is amortized on a straight-line basis over the related requisite service periods.

During the three months ended March 31, 2022, the Company granted approximately 21,300,000 restricted stock units with an estimated future expense of $281,600. These awards generally vest annually over a three-year period or quarterly over an accelerated four-year period, subject to the grantee’s employment or service with the Company through each applicable vesting date.

The Company has an employee stock purchase plan, also referred to as the Team Member Stock Purchase Plan ("TMSPP"), under which eligible team members may direct the Company to withhold up to 15% of their gross pay to purchase shares of common stock at a price equal to 85% of the closing market price on the exercise date. The TMSPP is a liability classified compensatory plan and the Company recognizes compensation expense over the offering period based on the fair value of the purchase discount. During the three months ended March 31, 2022 and 2021, there were 1,018,875 and zero shares, respectively, purchased by team members through the TMSPP.

Additionally, we are allocated costs associated with awards granted by Rock Holdings, Inc. (“RHI”) in the years prior to the reorganization and IPO and certain of our subsidiaries have individual compensation plans that include equity awards and stock appreciation rights.

The components of share-based compensation expense included in Salaries, commissions and team member benefits on the Condensed Consolidated Statements of Income and Comprehensive Income is as follows:


	Three Months Ended March 31,
	2022		2021
Rocket Companies, Inc. sponsored plans
Restricted stock units	$	42,492	$	27,601
Stock options	9,576		10,035
Team Member Stock Purchase Plan	2,098		2,923
Subtotal Rocket Companies, Inc. sponsored plans	$	54,166	$	40,559
RHI restricted stock units	12,775		1,372
Subsidiary plans	169		52
Total share-based compensation expense	$	67,110	$	41,983