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Incentive Plans | 3 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Incentive Plans | Note I – Incentive Plans The costs resulting from all share-based and cash-based incentive plans are recognized as an expense in the Consolidated Statements of Operations using a fair value-based measurement method over the periods that the awards vest. The Annual Incentive Plan (AIP) authorizes the Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and certain other employees. Cash awards under the AIP are determined based on the Company’s actual financial and operating results as measured against the performance goals established by the Committee. The 2020 Long-Term Incentive Plan (2020 Long-Term Plan) authorizes the Committee to make grants of the Company’s common stock and stock-based awards to employees. These grants may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SAR), restricted stock, restricted stock units (RSU), performance units, performance shares, dividend equivalents and other stock-based incentives. The 2020 Long-Term Plan expires in 2030. A total of 5 million shares of common stock are issuable during the life of the 2020 Long-Term Plan. Shares issued pursuant to awards granted under the 2020 Long-Term Plan may be shares that are authorized and unissued or shares that were reacquired by the Company, including shares purchased in the open market. Share awards that have been canceled, expired, forfeited or otherwise not issued under an award shall not count as shares issued under the 2020 Long-Term Plan. In addition, the 2020 Long-Term Plan authorizes the Committee to grant cash-settled equity awards to employees. These cash-settled RSU awards do not require issuance of the Company’s common stock, are time-based, and generally vest on the third anniversary of the date of grant. During the three months ended March 31, 2025, the Committee granted the following awards from the 2020 Long-Term Plan:
Type of Award |  | Number of Awards Granted |  | Grant Date |  | Grant Date Fair Value |  | Valuation Methodology
Performance-based RSUs (TSR) 1 |  | 520,150 |  | February 4, 2025 |  | $ | 22.11 |  |  | Monte Carlo
Performance-based RSUs (ROACE) 1 |  | 129,990 |  | February 4, 2025 |  | $ | 25.98 |  |  | Average Stock Price
Time-based RSUs (Stock-Settled) 2 |  | 470,440 |  | February 4, 2025 |  | $ | 25.98 |  |  | Average Stock Price
Time-based RSUs (Cash-Settled) 2 |  | 771,390 |  | February 4, 2025 |  | $ | 25.98 |  |  | Average Stock Price
1 Performance-based RSUs are tied to the achievement of Total Shareholder Return (TSR) and Return on Average Capital Employed (ROACE) performance goals and are scheduled to vest three years from the date of grant if performance conditions are met. 2 Time-based RSUs generally vest on the third anniversary of the date of grant. The Company also has a Stock Plan for Non-Employee Directors (NEDs) that permits the issuance of RSUs and stock options or a combination thereof to the Company’s NEDs. The Company currently has outstanding incentive awards issued to Directors under the 2021 Stock Plan for NEDs (2021 NED Plan) and the 2018 Stock Plan for NEDs. All awards on or after May 12, 2021 were made under the 2021 NED Plan. During the three months ended March 31, 2025, the Committee granted the following awards to NEDs under the 2021 NED Plan:
Type of Award |  | Number of Awards Granted |  | Grant Date |  | Grant Date Fair Value |  | Valuation Methodology
Time-Based RSUs 1 |  | 74,970 |  | February 5, 2025 |  | $ | 26.68 |  |  | Closing Stock Price
Time-Based RSUs 2 |  | 2,114 |  | March 31, 2025 |  | $ | 28.40 |  |  | Closing Stock Price
1 NED’s time-based RSUs are scheduled to vest on the first anniversary of the date of grant. NEDs may elect to defer settlement of their vested time-based RSUs until (1) termination of service from the Board or (2) a future date selected by the director at the time of their deferral election. These unvested time-based RSUs are included in the table above, will vest in one year, and become deferred RSUs. 2 Effective January 1, 2024, NEDs can elect to receive their annual retainers in the form of deferred RSUs. Director fees which are deferred into RSUs are calculated and expensed each quarter by taking fees earned in respect of the applicable quarter and dividing by the closing price of our common stock on the last trading day of the quarter. Each deferred RSU represents the right to receive one share of common stock following (1) termination of service from the Board or (2) a future date selected by the director at the time of their deferral election. Amounts recognized in the financial statements with respect to share-based plans are shown in the following table:
| Three Months Ended March 31,
(Thousands of dollars) | 2025 |  | 2024
Compensation charged against income before tax benefit | $ | 8,864 |  |  | $ | 8,937 |
Related income tax benefit recognized in income | 1,175 |  |  | 1,014 |
Certain incentive compensation granted to the Company’s named executive officers, to the extent their total compensation exceeds $1.0 million per executive per year, is not eligible for a U.S. income tax deduction under the Tax Cuts and Jobs Act (2017 Tax Act).

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