Stock Compensation Plans (Notes)

12 Months Ended

Dec. 31, 2021

Charter’s stock incentive plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plan. The stock incentive plan allows for the issuance of up to 16 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock).

Stock options and restricted stock units generally cliff vest three years from the date of grant. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant.

As of December 31, 2021, total unrecognized compensation remaining to be recognized in future periods totaled $226 million for stock options, $1.0 million for restricted stock and $208 million for restricted stock units and the weighted average period over which they are expected to be recognized is 2 years for stock options, 4 months for restricted stock and 2 years for restricted stock units. The Company recorded $430 million, $351 million and $315 million of stock compensation expense for the years ended December 31, 2021, 2020 and 2019, respectively, which is included in operating costs and expenses.

A summary of the activity for Charter’s stock options for the years ended December 31, 2021, 2020 and 2019, is as follows (shares in thousands, except per share data):


	Year Ended December 31,
	2021							2020							2019
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, beginning of period	8,842			$	312.95			10,549			$	241.14			10,410			$	225.53
Granted	1,295			$	629.57			1,672			$	536.27			1,847			$	298.84
Exercised	(1,568)			$	295.46	$	606	(3,160)			$	191.43	$	1,176	(1,271)			$	186.90	$	247
Canceled	(136)			$	476.90			(219)			$	312.94			(437)			$	270.94
Outstanding, end of period	8,433			$	362.26	$	2,447	8,842			$	312.95			10,549			$	241.14

Weighted average remaining contractual life	6		years					7		years					7		years
Options exercisable, end of period	4,102			$	237.45	$	1,700	2,940			$	220.78			3,119			$	161.13
Options expected to vest, end of period	4,331			$	480.47	$	746
Weighted average fair value of options granted	$	171.21						$	148.02						$	84.39

A summary of the activity for Charter’s restricted stock for the years ended December 31, 2021, 2020 and 2019, is as follows (shares in thousands, except per share data):


	Year Ended December 31,
	2021			2020			2019
	Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price
Outstanding, beginning of period	6	$	504.53	8	$	359.33	10	$	297.86
Granted	5	$	654.33	6	$	504.53	8	$	359.33
Vested	(6)	$	504.53	(8)	$	359.33	(10)	$	297.86
Canceled	—	$	—	—	$	—	—	$	—
Outstanding, end of period	5	$	654.33	6	$	504.53	8	$	359.33

A summary of the activity for Charter’s restricted stock units for the years ended December 31, 2021, 2020 and 2019, is as follows (shares in thousands, except per share data):


	Year Ended December 31,
	2021			2020			2019
	Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price
Outstanding, beginning of period	1,651	$	337.82	2,059	$	249.45	2,211	$	219.61
Granted	367	$	629.47	423	$	509.64	704	$	298.22
Vested	(665)	$	269.88	(753)	$	194.40	(729)	$	206.88
Canceled	(59)	$	467.26	(78)	$	317.45	(127)	$	250.85
Outstanding, end of period	1,294	$	449.03	1,651	$	337.82	2,059	$	249.45