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EQUITY COMPENSATION | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
EQUITY COMPENSATION | EQUITY COMPENSATION Evergy's Long-Term Incentive Plan is an equity compensation plan approved by Evergy shareholders. The Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, limited stock appreciation rights, director shares, director deferred share units and performance shares to directors, officers and other employees of Evergy. Common stock shares delivered by Evergy under the Long-Term Incentive Plan may be authorized but unissued, held in the treasury or purchased on the open market (including private purchases) in accordance with applicable securities laws. Evergy has a policy of delivering newly issued shares and does not expect to repurchase common shares during 2024 to satisfy equity compensation payments and director deferred share unit conversion. Evergy recognizes forfeitures as they occur. The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit.
|  | 2023 |  | 2022 |  | 2021
Evergy |  | (millions)
Equity compensation expense |  | $ | 17.7 |  |  | $ | 18.8 |  |  | $ | 15.6 |
Income tax (expense) benefit |  | 1.6 |  |  | 2.6 |  |  | (0.1) |
Evergy Kansas Central |  |  |  |  |  |
Equity compensation expense |  | 6.5 |  |  | 8.4 |  |  | 6.9 |
Income tax (expense) benefit |  | 1.4 |  |  | 1.7 |  |  | (0.2) |
Evergy Metro |  |  |  |  |  |
Equity compensation expense |  | 5.7 |  |  | 6.0 |  |  | 5.1 |
Income tax (expense) benefit |  | (0.6) |  |  | 0.2 |  |  | (0.6) |
Restricted Share Units Evergy utilizes RSUs for new grants of stock-based compensation awards. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs either take the form of RSUs with performance measures that vest upon the achievement of specific performance goals or RSUs with only service requirements that vest solely upon the passage of time. RSUs with Performance Measures The payment of RSUs with performance measures is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Board. The numbers of RSUs with performances measures ultimately paid can vary from the numbers of RSUs with performance measures initially granted depending on Evergy's performance over the stated performance periods. Compensation expense for RSUs with performance measures is calculated by recognizing the portion of the fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of RSUs with performance measures ultimately paid. The fair value of RSUs with performance measures is estimated using the market value of Evergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and the actual closing stock price on the valuation date. For shares granted in 2023, inputs for expected volatility, dividend yield and the risk-free rate were 24%, 4.22% and 4.58%, respectively. RSU activity for awards with performance measures for 2023 is summarized in the following table.
| Nonvested Restricted Share Units |  | Grant Date Fair Value*
Beginning balance as of January 1, 2023 |  | 546,898 |  |  |  |  | $ | 63.57 |  |
Granted |  | 231,069 |  |  |  |  | 59.77 |  |
Vested |  | (108,041) |  |  |  |  | 87.98 |  |
Forfeited |  | (6,199) |  |  |  |  | 58.44 |  |
Ending balance as of December 31, 2023 |  | 663,727 |  |  |  |  | 58.32 |  |
* weighted-average As of December 31, 2023, the remaining weighted-average contractual term related to RSU awards with performance measures was 1.2 years. The weighted-average grant-date fair value of RSUs granted with performance measures was $59.77, $57.95 and $57.21 in 2023, 2022 and 2021, respectively. As of December 31, 2023, there was $11.4 million of unrecognized compensation expense related to unvested RSUs with performance measures. The total fair value of RSUs with performance measures that vested was $7.9 million in 2023, $5.5 million in 2022 and no RSUs with performance measures vested in 2021. RSUs with Only Service Requirements Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award. Dividends are accrued over the vesting period and are invested in additional RSU's subject to the same service conditions. RSU activity for awards with only service requirements for 2023 is summarized in the following table.
| Nonvested Restricted Share Units |  | Grant Date Fair Value*
Beginning balance as of January 1, 2023 |  | 239,495 |  |  |  |  | $ | 58.98 |  |
Granted |  | 79,199 |  |  |  |  | 57.47 |  |
Vested |  | (52,412) |  |  |  |  | 62.92 |  |
Forfeited |  | (2,068) |  |  |  |  | 57.35 |  |
Ending balance as of December 31, 2023 |  | 264,214 |  |  |  |  | 57.76 |  |
* weighted-average As of December 31, 2023, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.1 years. The weighted-average grant-date fair value of RSUs granted with only service requirements was $57.47, $60.93 and $55.30 in 2023, 2022 and 2021, respectively. As of December 31, 2023, there was $4.5 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested was $3.3 million, $4.7 million and $2.4 million in 2023, 2022 and 2021, respectively.

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