XML 45 R22.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Stock Compensation Plans | 12 Months Ended
--- | ---
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock Compensation Plans | Stock Compensation Plans Pursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stock, stock options, restricted stock, RSUs including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of East West and its subsidiaries. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of December 31, 2023, 2022 and 2021. An aggregate of 17 million shares of common stock were authorized under the 2021 Stock Incentive Plan, and the total number of shares available for grant was approximately 4 million as of December 31, 2023. The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2023, 2022 and 2021:
|  | Year Ended December 31,
($ in thousands) |  | 2023 |  | 2022 |  | 2021
Stock compensation costs |  | $ | 39,867 |  |  | $ | 37,601 |  |  | $ | 32,567 |
Related net tax benefits for stock compensation plans |  | $ | 8,959 |  |  | $ | 5,293 |  |  | $ | 1,760 |
Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle in shares of the Company’s common stock. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion of RSUs are time-based vesting awards, others vest subject to attainment of additional specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation and Management Development Committee based on the performance in the year prior to the grant date of the award. The number of awards that vest can range from zero percent to a maximum of 200% of the granted number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years. For information on accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements in this Form 10-K. The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that were settled in shares for the year ended December 31, 2023. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date:
|  | Time-Based RSUs |  | Performance-Based RSUs
|  | Shares |  | Weighted-Average Grant Date Fair Value |  | Shares |  | Weighted-Average Grant Date Fair Value
Outstanding, January 1, 2023 |  | 1,296,866 |  |  | $ | 60.77 |  |  | 332,510 |  |  | $ | 60.40 |
Granted |  | 515,218 |  |  | $ | 73.13 |  |  | 96,271 |  |  | $ | 79.93 |
Vested |  | (543,032) |  |  | $ | 40.93 |  |  | (152,558) |  |  | $ | 39.79 |
Forfeited |  | (62,534) |  |  | $ | 74.04 |  |  | — |  |  | $ | — |
Outstanding, December 31, 2023 |  | 1,206,518 |  |  | $ | 74.29 |  |  | 276,223 |  |  | $ | 78.59 |
The weighted-average grant date fair value of the time-based RSUs granted during the years ended December 31, 2023, 2022, and 2021 was $73.13, $78.15, and $71.88, respectively. The weighted-average grant date fair value of the performance-based RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $79.93, $77.91 and $77.67, respectively. The total fair value of time-based RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $39 million, $30 million and $23 million, respectively. The total fair value of performance-based RSUs that vested during the years ended December 31, 2023, 2022, and 2021 was $21 million, $18 million and $15 million, respectively. As of December 31, 2023, there were $28 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.76 years, and $15 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.77 years. Employee Stock Purchase Plan — The 1998 Employee Stock Purchase Plan (the “Purchase Plan”) provides eligible employees of the Company the right to purchase shares of its common stock at a discount. Employees can purchase shares at 90% of the fair market price subject to an annual purchase limitation of $22,500 per employee. As of December 31, 2023, the Purchase Plan qualifies as a non-compensatory plan under Section 423 of the Internal Revenue Code and, accordingly, no compensation expense has been recognized. 2,000,000 shares of the Company’s common stock were authorized for sale under the Purchase Plan. During the years ended December 31, 2023 and 2022, 65,971 shares totaling $3 million and 48,990 shares totaling $3 million, respectively, were sold to employees under the Purchase Plan. As of December 31, 2023, there were 151,814 shares available under the Purchase Plan.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration