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Share-based compensation plans | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Share-based compensation plans | Share-based compensation plans The Company provides share-based compensation to certain employees and non-employee directors in the form of restricted stock units, performance contingent restricted stock units, and other share-based awards. Beginning in 2019, share-based awards were issued pursuant to the Sonoco Products Company 2019 Omnibus Incentive Plan (the "2019 Plan"), which became effective upon approval by the shareholders on April 17, 2019. At December 31, 2022, a total of 6,998,566 shares remain available for future grant under the 2019 Plan. The Company issues new shares for stock unit conversions and stock appreciation right exercises. Accounting for share-based compensation Total compensation cost for share-based payment arrangements was $31,309, $22,608 and $10,607, for 2022, 2021 and 2020, respectively. The related tax benefit recognized in net income was $7,999, $5,715, and $2,686, for the same years, respectively. Share-based compensation expense is included in “Selling, general and administrative expenses” in the Consolidated Statements of Income. The Company accounts for forfeitures of its share-based payment arrangements as they occur. An “excess” tax benefit is created when the tax deduction for an exercised stock appreciation right, exercised stock option or converted stock unit exceeds the compensation cost that has been recognized in income. The additional net excess tax benefit realized was $1,367, $1,110 and $2,528 for 2022, 2021 and 2020, respectively. Restricted Stock Units The Company grants awards of restricted stock units (RSUs) to executive officers and certain key management employees. These awards vest over a three-year period with one-third vesting on each anniversary date of the grant. The expense for these RSUs is recognized following the graded-vesting method, which results in front-loaded expense being recognized during the early years of the required service period. For grants awarded prior to 2021, participants must be actively employed by the Company on the vesting date for shares to be issued, except in the event of the participant’s death, disability, or involuntary (or good reason) termination within two years of a change in control prior to full vesting, in which case shares will immediately vest. For awards granted since 2020, in the event of the participant’s death, disability or retirement prior to full vesting, shares will be issued on a pro rata basis up through the time the participant’s employment or service ceases. Once vested, these awards do not expire. The Company from time to time grants special RSUs to certain of its executive officers and directors. These awards normally vest over a five-year period with one-third vesting on each of the third, fourth and fifth anniversaries of the grant, but in some circumstances may vest over a shorter period, or cliff vest at the end of the five-year period. Normally a participant must be actively employed by, or serving as a director of, the Company on the vesting date for shares to be issued, but the Company may make other arrangements in connection with termination of employment prior to the vesting date. Officers and directors can elect to defer receipt of RSUs, but key management employees are required to take receipt of the stock issued upon the vest date. The weighted-average grant-date fair value of RSUs granted was $53.55, $57.77 and $54.16 per share in 2022, 2021 and 2020, respectively. The fair value of shares vesting during the year was $6,243, $4,063, and $3,277 for 2022, 2021 and 2020, respectively. Noncash stock-based compensation associated with restricted stock grants totaled $11,113, $8,278 and $4,559 for 2022, 2021 and 2020, respectively. As of December 31, 2022, there was $9,597 of total unrecognized compensation cost related to nonvested restricted stock units. This cost is expected to be recognized over a weighted-average period of 29 months. The activity related to restricted stock units for the year ended December 31, 2022 is as follows:
| Nonvested |  | Vested |  | Total |  | Average Grant Date Fair Value Per Share
Outstanding, December 31, 2021 | 332,597 |  |  | 82,264 |  |  | 414,861 |  |  | $ | 53.32 |
Granted | 291,365 |  |  | — |  |  | 291,365 |  |  | $ | 53.55 |
Vested | (111,333) |  |  | 111,333 |  |  | — |  |  |
Converted |  |  | (122,337) |  |  | (122,337) |  |  | $ | 53.62 |
Cancelled | (51,908) |  |  | — |  |  | (51,908) |  |  | $ | 55.04 |
Dividend equivalents | 1,674 |  |  | 2,049 |  |  | 3,723 |  |  | $ | 56.33 |
Outstanding, December 31, 2022 | 462,395 |  |  | 73,309 |  |  | 535,704 |  |  | $ | 53.23 |
Performance Contingent Restricted Stock Units The Company grants performance contingent restricted stock units (PCSUs) annually on a discretionary basis to executive officers and certain key management employees. The ultimate number of PCSUs awarded is dependent upon the degree to which performance, relative to defined targets related to earnings, return on invested capital, and return on net assets employed, is achieved over a three-year performance cycle. PCSUs granted vest at the end of the three-year performance period if the respective performance targets are met. No units will be awarded if the performance targets are not met. Upon vesting, PCSUs are convertible into common shares on a one-for-one basis. Except in the event of the participant's death, disability, or retirement, if a participant is not employed by the Company at the end of the performance period, no PCSUs will vest. However, in the event of the participant’s death, disability or retirement prior to full vesting, shares will be issued on a pro rata basis up through the time the participant’s employment or service ceases. In the event of a change in control, as defined under the 2019 Plan, all unvested PCSUs will vest at target on a pro rata basis if the change in control occurs during the three-year performance period. The activity related to performance contingent restricted stock units for the year ended December 31, 2022 is as follows:
| Nonvested |  | Vested |  | Total |  | Average Grant Date Fair Value per Share
Outstanding, December 31, 2021 | 480,653 |  |  | 97,653 |  |  | 578,306 |  |  | $53.67
Granted | 201,835 |  |  | — |  |  | 201,835 |  |  | $51.94
Performance adjustments | 304,554 |  |  | — |  |  | 304,554 |  |  | $51.96
Vested | (280,881) |  |  | 280,881 |  |  | — |  |  |
Converted | — |  |  | (77,167) |  |  | (77,167) |  |  | $52.62
Cancelled | (106,779) |  |  | — |  |  | (106,779) |  |  | $53.59
Dividend equivalents | — |  |  | 1,033 |  |  | 1,033 |  |  | $59.32
Outstanding, December 31, 2022 | 599,382 |  |  | 302,400 |  |  | 901,782 |  |  | $52.81
2022 PCSU. As of December 31, 2022, the 2022 PSCUs to be awarded are estimated to range from 0 to 357,362 units and are tied to the three-year performance period ending December 31, 2024. 2021 PCSU. As of December 31, 2022, the 2021 PSCUs to be awarded are estimated to range from 0 to 242,020 units and are tied to the three-year performance period ending December 31, 2023. 2020 PCSU. The performance cycle for the 2020 PSCUs was completed on December 31, 2022. Outstanding stock units of 280,881 units were determined to have been earned. The fair value of these units was $17,052 as of December 31, 2022. 2019 PCSU. The performance cycle for the 2019 PCSUs was completed on December 31, 2021. Outstanding stock units of 64,243 were determined to have been earned. The fair value of these units was $3,719 as of December 31, 2021. 2018 PCSU. The performance cycle for the 2018 PCSUs was completed on December 31, 2020. Outstanding stock units of 139,886 units were determined to have been earned. The fair value of these units was $8,288 as of December 31, 2020. The weighted-average grant-date fair value of PCSUs granted was $51.94, $55.95, and $52.00 per share in 2022, 2021 and 2020, respectively. Noncash stock-based compensation associated with PCSUs totaled $17,900, $11,477 and $2,023 for 2022, 2021 and 2020, respectively. As of December 31, 2022, there was approximately $16,889 of total unrecognized compensation cost related to nonvested PCSUs. This cost is expected to be recognized over a weighted-average period of 21 months. Stock appreciation rights Through 2019, the Company granted stock appreciation rights ("SARs") annually on a discretionary basis to key employees. These SARs had an exercise price equal to the closing market price on the date of the grant and can be settled only in stock. The SARs granted from 2015 through 2019 vested over three years, with one-third vesting on each anniversary date of the grant, and have 10-year terms. All outstanding SARs are vested as of December 31, 2022. SARs expense was recognized following the graded-vesting method, which resulted in front-loaded expense being recognized during the early years of the required service period. As of December 31, 2022, there is no unrecognized compensation cost related to nonvested SARs. Noncash stock-based compensation expense associated with SARs totaled $40, $347, and $1,442 for 2022, 2021, and 2020, respectively. The aggregate intrinsic value of SARS exercised during 2022, 2021, and 2020 was $582, $2,575, and $2,771, respectively. The activity related to the Company’s SARs for the year ended December 31, 2022 is as follows:
| Nonvested |  | Vested |  | Total |  | Weighted- average Exercise Price
Outstanding, December 31, 2021 | 124,164 |  |  | 755,507 |  |  | 879,671 |  |  | $ | 55.03 |
Vested | (124,164) |  |  | 124,164 |  |  | — |  |  |
Granted | — |  |  | — |  |  | — |  |  | $ | — |
Exercised | — |  |  | (105,681) |  |  | (105,681) |  |  | $ | 55.20 |
Forfeited/Expired | — |  |  | (9,184) |  |  | (9,184) |  |  | $ | 57.45 |
Outstanding, December 31, 2022 | — |  |  | 764,806 |  |  | 764,806 |  |  | $ | 54.98 |
Exercisable, December 31, 2022 | — |  |  | 764,806 |  |  | 764,806 |  |  | $ | 54.98 |
The weighted average remaining contractual life for both SARs outstanding and exercisable at December 31, 2022 was 5.1 years. The aggregate intrinsic value for both SARs outstanding and exercisable at December 31, 2022 was $4,292. At December 31, 2022, the fair market value of the Company’s stock used to calculate intrinsic value was $60.71 per share. Deferred compensation plans Certain officers of the Company receive a portion of their compensation, either current or deferred, in the form of stock equivalent units. Units are granted as of the day the cash compensation would have otherwise been paid using the closing price of the Company’s common stock on that day. Deferrals into stock equivalent units are converted into phantom stock equivalents as if Sonoco shares were actually purchased. The units immediately vest and earn dividend equivalents. Units are distributed in the form of common stock upon retirement over a period elected by the employee. Non-employee directors may elect to defer a portion of their cash retainer or other fees (except chair retainers) into phantom stock equivalent units as if Sonoco shares were actually purchased. The deferred stock equivalent units accrue dividend equivalents, and are issued in shares of Sonoco common stock six months following termination of Board service. Directors must elect to receive these deferred distributions in one, three or five annual installments. The activity related to deferred compensation for equity award units granted to both employees and non-employee directors combined is as follows:
| Total
Outstanding, December 31, 2021 | 380,757 |
Deferred | 37,617 |
Converted | (144,244) |
Dividend equivalents | 12,885 |
Outstanding, December 31, 2022 | 287,015 |
Compensation deferrals for employees and directors, all of which will be settled in Company stock at retirement, totaled $2,256, $2,507, and $2,593, during 2022, 2021, and 2020, respectively.

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