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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The Company currently maintains the Simpson Manufacturing Co., Inc. Amended and Restated 2011 Incentive Plan (the “2011 Plan”) as its only equity incentive plan. Under the 2011 Plan, no more than 16.3 million shares of the Company’s common stock in aggregate may be issued, including shares already issued pursuant to prior awards granted under the 2011 Plan. Shares of common stock underlying awards to be issued pursuant to the 2011 Plan are registered under the Securities Act. Under the 2011 Plan, the Company may grant restricted stock and restricted stock units. The Company currently intends to award only performance-based stock units ("PSUs") and/or time-based restricted stock units ("RSUs").

The following table shows the Company’s stock-based compensation activity:
 Fiscal Years Ended December 31,
(in thousands) 
202420232022
Stock-based compensation expense recognized $13,112 $19,726 $12,503 
Tax benefit of stock-based compensation expense in provision for income taxes3,204 4,808 3,133 
Stock-based compensation expense, net of tax$9,908 $14,918 $9,370 

The Company allocates stock-based compensation expense amongst cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. Stock-based compensation capitalized in inventory was immaterial for all periods presented.
The following table summarizes the Company’s unvested restricted stock unit activity for the year ended December 31, 2024:
Shares
(in thousands)
Weighted-
Average
Exercise Price
Aggregate
Intrinsic
Value *
(in thousands)
Unvested Restricted Stock Units (RSUs)
Outstanding as of January 1, 2024378 $102.87 $74,850 
Awarded161 177.60 
Vested(167)103.64 
Forfeited(36)116.62 
Outstanding as of December 31, 2024336 130.42 55,333 
Outstanding and expected to vest at December 31, 2024327 54,249 

* The intrinsic value for outstanding and expected to vest is calculated using the closing price per share of $165.83, as reported by the New York Stock Exchange on December 31, 2024.
 
During the year ended December 31, 2024, the Company granted 156 thousand RSUs and PSUs to the Company’s employees, including officers at an estimated weighted average fair value of $177.73 per share, based on the closing price (adjusted for certain market factors primarily the present value of dividends) of the Company’s common stock on the grant date. The RSUs and PSUs granted to the Company’s employees may be time-based, performance-based or time- and performance-based. Certain of the PSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the award agreement over a cumulative three years period. These awards cliff vest after three years. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time and performance-based RSUs granted to the Company’s employees excluding officers and certain key employees, vest ratably over the four-year life of the award and through 2020, required the underlying shares of the Company's common stock to be subject to a performance-based adjustment during the first year and starting in 2021, were time-based awards which vest ratable over the four-year life of the award.

The Company’s seven non-employee directors serving during 2024 are entitled to receive approximately $0.9 million in equity compensation annually. The number of shares granted is based on the average closing share price for the Company over the 60 days period prior to approval of the award in the second quarter of each year. In May 2024, the Company granted 4,692 shares of the Company's common stock to the non-employee directors, based on the average closing price of $173.89 per share and recognized total expense of $0.8 million.

The total intrinsic value of RSUs and PSUs vested during the years ended December 31, 2024, 2023 and 2022 was $31.8 million, $20.3 million and $25.6 million, respectively, based on the market value on the vest date.

As of December 31, 2024, the Company’s aggregate unamortized stock compensation expense was approximately $24.2 million, which is expected to be recognized over a weighted-average period of approximately 2.2 years.

Stock Bonus Plan

The Company also maintains the Simpson Manufacturing Co., Inc. 1994 Employee Stock Bonus Plan (the “Stock Bonus Plan”), whereby it awards shares of the Company’s common stock to employees, who do not otherwise participate in any of the Company’s equity-based incentive plans and meet minimum service requirements. Shares have generally been awarded under the Stock Bonus Plan following the year in which the respective employee reached his or her tenth, twentieth, thirtieth, fortieth or fiftieth anniversary of employment with the Company or any direct or indirect subsidiary thereof.

The Company awarded shares for service through 2024, 2023, and 2022 as shown below:
December 31,
202420232022
Shares to be issued
21,266 9,800 9,300 
Shares settled with cash (foreign employees)763 4,900 7,400 
Total awards22,029 14,700 16,700 
As a result, we recorded pre-tax compensation charges of $3.7 million, $1.9 million, and $1.5 million for years ended December 31, 2024, 2023, and 2022, respectively. These charges include cash bonuses to compensate employees for income taxes payable as a result of the stock bonuses.