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Share-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
Incentive Plan Including Share-Based Compensation — Xcel Energy has authorized 7.0 million equity shares under an incentive plan (the Amended and Restated 2015 Omnibus Incentive Plan).
Equity Awards — Xcel Energy‘s Board of Directors has granted equity awards under the 2015 Omnibus Incentive Plan, which includes various vesting conditions and performance goals. At the end of the restricted period, such grants will be awarded if vesting conditions and/or performance goals are met.
Certain employees are granted equity awards with a portion subject only to service conditions, and the other portion subject to performance conditions. The total time-based equity shares granted subject only to service conditions was 0.4 million in 2023 and 0.2 million in 2022 and 2021 respectively.
The performance conditions for a portion of the awards granted from 2021 to 2023 are based on relative TSR and environmental goals. Equity awards with performance conditions will be settled after three years, with payouts ranging from zero to 200% depending on achievement.
Equity award units granted to employees:
(Units in Thousands)202320222021
Granted units586 395 421 
Weighted average grant date fair value$67.06 $68.43 $66.03 
Equity awards vested:
(Units in Thousands, Fair Value in Millions)202320222021
Vested Units329 319 392 
Total Fair Value$20 $22 $27 
Changes in the nonvested portion of equity award units:
(Units in Thousands)UnitsWeighted Average
Grant Date Fair Value
Nonvested Units at Jan. 1, 2023708 $67.35 
Granted586 67.06 
Forfeited(184)68.42 
Vested(329)66.23 
Dividend equivalents38 67.65 
Nonvested Units at Dec. 31, 2023819 67.36 
Stock Equivalent Units — Non-employee members of Xcel Energy‘s Board of Directors may elect to receive their annual equity grant as stock equivalent units in lieu of common stock. Each unit’s value is equal to one share of common stock. The annual equity grant is vested as of the date of each member’s election to the Board of Directors; there is no further service or other condition. Directors may also elect to receive their fees as stock equivalent units in lieu of cash. Stock equivalent units are payable as a distribution of common stock upon a director’s termination of service.
Stock equivalent units granted:
(Units in Thousands)202320222021
Granted units38 29 31 
Weighted average grant date fair value$63.12 $71.97 $68.15 
Changes in stock equivalent units:
(Units in Thousands)UnitsWeighted Average
Grant Date Fair Value
Stock equivalent units at Jan. 1, 2023597 $41.75 
Granted38 63.12 
Units distributed(134)33.90 
Dividend equivalents16 64.95 
Stock equivalent units at Dec. 31, 2023517 46.07 
Liability Awards — Xcel Energy’s Board of Directors has granted TSR liability awards under the 2015 Omnibus Incentive Plan. This plan allows Xcel Energy to attach various performance goals to the awards granted. The liability awards have been historically dependent on relative TSR measured over a three-year period. Xcel Energy Inc.’s TSR is compared to a peer group of other utility companies. Potential payouts of the awards range from zero to 200%.
Liability awards granted:
(In Thousands)202320222021
Awards granted216 165 221 
Liability awards settled:
(Units In Thousands, Settlement Amount in Millions)202320222021
Awards settled282 411 446 
Settlement amount (cash, common stock and deferred amounts)$19 $27 $27 
TSR liability awards of $13 million were settled in cash in 2023.
Share-Based Compensation Expense — Award settlement determination (permitting cash or share settlement) is made by Xcel Energy, not the participants. Equity awards have not been previously settled in cash and Xcel Energy plans to continue electing share settlement. Grant date fair value of equity awards is expensed over the service period.
TSR liability awards are accounted for as liabilities, as historically they are partially settled in cash. As liability awards, the fair value on which ratable expense is based, as employees vest in their rights to those awards, is remeasured each period based on the current stock price and performance achievement, and final expense is based on the market value of the award on the date the settlement date.
Compensation costs related to share-based awards:
(Millions of Dollars)202320222021
Cost for share-based awards (a)
$27 $36 $31 
Tax benefit recognized in income7 9 8 
(a)Compensation costs for share-based payments are included in O&M expense. Amount for equity awards (non-cash) was $25 million in 2023.
There was approximately $38 million and $37 million as of Dec. 31, 2023 and 2022, respectively, of total unrecognized compensation cost related to nonvested share-based compensation awards. Xcel Energy expects to recognize the unrecognized amount over a weighted average period of 1.7 years.