We issue restricted stock units (“RSUs”), which consist of time-based and performance-based awards, to employees under stock awards plans approved by stockholders. In addition, RSUs are issued to non-employee directors under a Restricted Stock Unit Award Agreement for Directors pursuant to the Company’s 2018 Equity Incentive Plan. RSUs granted to employees vest according to a specified performance period and/or vesting period. Time-based RSUs generally vest over three years. Performance-based RSUs vest at the end of the specified performance period, generally three years, assuming required performance or market vesting conditions are met.

For awards granted in the first quarter of 2023 and thereafter, our performance-based RSUs will vest based on our return on invested capital (“ROIC”). Award share payouts depend on the extent to which the ROIC performance goal has been achieved, but the final payout is adjusted by a total shareholder return (“TSR”) modifier.

At the time of vesting, the vested shares of common stock are issued in the employee’s name. In addition, RSU awards are generally net settled (shares are withheld to cover the employee tax obligation). RSUs granted to directors are only time-based and generally vest on or around the first anniversary of the date of grant.

The fair value of both time-based RSUs and performance-based RSUs pertaining to internal performance metrics is determined using the closing price of our common stock on the grant date. The fair value of performance-based RSUs pertaining to TSR is estimated using a Monte Carlo simulation. Inputs and assumptions used to calculate the fair value are shown in the table below. The fair value of these RSUs is expensed over the vesting period using the straight-line method or using the graded vesting method when an employee becomes eligible to retain the award at retirement.


Nine Months Ended September 30,	2025			2024
Fair value per stock award	$	154.20		$	145.79
Grant date stock price	$	147.84		$	141.00
Assumptions:
Aptar's stock price expected volatility	17.70		%	18.80		%
Expected average volatility of peer companies	34.10		%	34.80		%
Correlation assumption	31.00		%	30.70		%
Risk-free interest rate	4.03		%	4.51		%
Dividend yield assumption	1.22		%	1.16		%



	Time-Based RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2025	277,245	$	123.28	513,226	$	127.17
Granted	93,346	145.29		207,167	147.38
Vested	(142,856)	117.70		(215,069)	131.12
Forfeited	(8,064)	126.16		(48,879)	121.15
Nonvested at September 30, 2025	219,671	$	136.14	456,445	$	135.06

Included in the time-based RSU activity for the nine months ended September 30, 2025 are 9,805 units granted to non-employee directors and 10,208 units that vested related to non-employee directors.


Nine Months Ended September 30,	2025		2024
Compensation expense (included in SG&A)	$	27,515	$	29,425
Compensation expense (included in Cost of sales)	2,588		2,252
Compensation expense, Total	$	30,103	$	31,677
Fair value of units vested	43,382		35,434
Intrinsic value of units vested	53,743		38,578

The actual tax benefit realized for the tax deduction from RSUs was approximately $9.8 million and $7.2 million in the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, there was $51.3 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 1.9 years.

Historically we issued stock options to our employees and non-employee directors. We did not issue stock options between 2019 and 2022. Stock options were reinstituted in 2023 and valued based on the Black-Scholes model and generally vest ratably over three years and expire 10 years after grant.

The Company uses historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the stock awards plans were $36.91 and $36.07 per share during the first nine months of 2025 and 2024, respectively. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


Stock Award Plans:
Nine Months Ended September 30,	2025		2024
Dividend Yield	1.17	%	1.28	%
Expected Stock Price Volatility	17.66	%	17.03	%
Risk-free Interest Rate	4.21	%	4.51	%
Expected Life of Option (years)	7.0		7.0



	Stock Awards Plans
	Options		Weighted Average Exercise Price
Outstanding, January 1, 2025	1,663,307		$	93.69
Granted	226,187		147.84
Exercised	(194,834)		76.20
Forfeited or expired	(13,671)		114.87
Outstanding at September 30, 2025	1,680,989		$	102.83
Exercisable at September 30, 2025	1,195,724		$	88.11
Weighted-Average Remaining Contractual Term (Years):
Outstanding at September 30, 2025	4.5
Exercisable at September 30, 2025	2.8
Aggregate Intrinsic Value:
Outstanding at September 30, 2025	$	54,546
Exercisable at September 30, 2025	$	53,009
Intrinsic Value of Options Exercised During the Nine Months Ended:
September 30, 2025	$	15,079
September 30, 2024	$	43,779


Nine Months Ended September 30,	2025		2024
Compensation expense (included in SG&A)	$	6,082	$	5,678
Compensation expense (included in Cost of sales)	587		607
Compensation expense, Total	$	6,669	$	6,285
Compensation expense, net of tax	5,455		6,121
Grant date fair value of options vested	5,200		2,306

The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises for the nine months ended September 30, 2025 and 2024 was approximately $14.9 million and $44.4 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $3.8 million and $10.3 million in the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, there was $5.8 million of total unrecognized compensation cost relating to stock option awards which is expected to be recognized over a weighted-average period of 2.0 years.