Share-based compensation cost recognized in the accompanying Consolidated Statements of Income includes compensation cost for share-based payment awards based on an estimated grant date fair value. Share-based compensation expense is based on awards expected to vest and therefore has been reduced for estimated forfeitures.

In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan (2020 Plan). This plan reserved 2.5 million common shares for the award of a variety of share-based compensation alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all share-based grants and awards that are earned and exercised will be issued from Avient common shares that are held in treasury.

In May 2023, our shareholders voted to approve an amendment and restatement of the 2020 Plan (Amended 2020 Plan). The Amended 2020 Plan increases the number of common shares available for awards under the 2020 plan by 2.5 million common shares.

Share-based compensation is included in Selling and administrative expense. A summary of compensation expense by type of award follows:


(In millions)	2024		2023		2022
Stock appreciation rights	$	6.5	$	6.1	$	5.9
Performance shares	0.1		0.2		0.2
Restricted stock units	8.8		6.9		7.1
Total share-based compensation	$	15.4	$	13.2	$	13.2

During the years ended December 31, 2024, 2023 and 2022, the total number of SARs granted was 0.5 million, 0.5 million and 0.4 million, respectively. Awards vest in one-third increments upon the later of the attainment of time-based vesting over a three-year service period and stock price targets. Awards granted in 2024, 2023 and 2022 are subject to an appreciation cap of 200% of the base price. SARs have contractual terms of ten years from the date of the grant.

The SARs were valued using a Monte Carlo simulation method as the vesting is dependent on the achievement of certain stock price targets. The SARs have time and stock price target requirements, both of which must be achieved in order to vest. Forfeitures were estimated at 3% per year based on our historical experience.

The following is a summary of the weighted average assumptions related to the grants issued during 2024, 2023 and 2022:


	2024	2023	2022
Expected volatility	36.0%	35.0%	33.0%
Expected dividends	2.6%	2.3%	1.8%
Expected term (in years)	6.4	6.4	6.9
Risk-free rate	4.3%	3.8%	2.0%
Value of SARs granted	$12.36	$13.28	$14.91

A summary of SAR activity for 2024 is presented below:


(In millions, except per share data)	Shares	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic value
Outstanding as of January 1, 2024	2.5	$	40.18	6.6	$	9.2
Granted	0.5	39.27
Exercised	(0.4)	34.24
Forfeited or expired	(0.1)	44.38
Outstanding as of December 31, 2024	2.5	$	40.93	6.6	$	6.2
Vested and exercisable as of December 31, 2024	1.3	$	37.59	5.2	$	5.5

The total intrinsic value of SARs exercised during 2024, 2023 and 2022 was $5.6 million, $0.7 million and $2.4 million, respectively. As of December 31, 2024, there was $3.1 million of total unrecognized compensation cost related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 23 months.

RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are met.

During 2024, 2023 and 2022, the total number of RSUs granted were 0.2 million, 0.3 million and 0.2 million, respectively. In 2024, 0.2 million RSUs vested. These RSUs, which generally vest on the third anniversary of the grant date, were granted to executives and other key employees. Compensation expense is measured on the grant date using the quoted market price of our common shares and is recognized on a straight-line basis over the requisite service period.

As of December 31, 2024, 0.6 million RSUs remain unvested with a weighted-average grant date fair value of $42.65. Unrecognized compensation cost for RSUs at December 31, 2024 was $11.3 million, which is expected to be recognized over the weighted average remaining vesting period of 24 months.