SHARE-BASED COMPENSATION PLANS

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

We generally grant share-based awards in the first quarter of each year during our annual equity award process. The following table is a summary of the awards granted in the annual equity award process in the first quarter of 2022:




	Shares Granted	Weighted-Average Fair Market Value
	(Shares in thousands)

Time-vested restricted stock rights	390		$	73.74
Performance-based restricted stock rights (1)	118		76.68






Total	508		$	74.42

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(1)Awards in the first quarter of 2022 contained vesting conditions based on return on equity, strategic revenue growth and free cash flow.

Restricted stock awards are unvested stock rights that are granted to employees and entitle the holder to shares of common stock as the award vests. Time-vested restricted stock rights typically vest ratably over three years regardless of company performance. The fair value of the time-vested awards is determined and fixed based on Ryder’s stock price on the date of grant.

Performance-based restricted stock rights (PBRSRs) are generally granted to executive management and include a performance-based vesting condition. PBRSRs are awarded based on various revenue, return-based and cash flow performance targets and may include a total shareholder return (TSR) modifier for certain members of management. The fair values of the PBRSRs that include a TSR modifier are estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. The fair value of PBRSRs that do not include a TSR modifier is determined and fixed on the grant date based on our stock price on the date of grant. Share-based compensation expense for PBRSRs is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met.