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SHARE-BASED COMPENSATION
 12 Months Ended
Nov. 30, 2024
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION:
In November 2020, TD SYNNEX Corporation (“TD SYNNEX”), as the former sole stockholder of Concentrix, approved the Concentrix Corporation 2020 Stock Incentive Plan (the “Concentrix Stock Incentive Plan”) and the Concentrix Corporation 2020 Employee Stock Purchase Plan (the “Concentrix ESPP”), each to be effective upon completion of Concentrix’ spin-off from TD SYNNEX, which occurred on December 1, 2020. 4,000 shares of Concentrix common stock were reserved for issuance under the Concentrix Stock Incentive Plan, and 1,000 shares of Concentrix common stock were authorized for issuance under the Concentrix ESPP. In December 2021, 2022 and 2023, respectively, 523, 520, and 664 additional shares of Concentrix common stock were reserved for issuance under the Concentrix Stock Incentive Plan resulting from an automatic annual increase pursuant to the terms of the plan (the “Evergreen Provision”).
On October 28, 2024, the stockholders of Concentrix approved the Concentrix Corporation Amended and Restated 2020 Stock Incentive Plan (the “2020 Plan”) at a Special Meeting of Stockholders that (i) increased the number of authorized shares thereunder by 3,000 shares and (ii) removed the Evergreen Provision, among other amendments. The 2020 Plan was previously approved by the Company’s board of directors.
The Company recorded share-based compensation expense in the consolidated statements of operations for fiscal years 2024, 2023 and 2022 as follows:
Fiscal Years Ended November 30,
202420232022
Total share-based compensation$95,922 $62,493 $47,516 
Tax benefit recorded in the provision for income taxes(16,482)(15,623)(12,069)
Effect on net income$79,440 $46,870 $35,447 
Share-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations.
Employee Stock Options
The Company uses the Black-Scholes valuation model to estimate the fair value of stock options. The Black-Scholes option-pricing model was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The stock options have ten-year terms and vesting terms of five years.
A summary of the changes in the employee stock options during fiscal years 2022, 2023, and 2024 is presented below:
Options Outstanding
Number of shares
(in thousands)
Weighted-
average exercise
price per share
Balance as of November 30, 2021441$51.75 
Options granted— — 
Options issued in conversion of certain vested PK stock options (1)
119 45.81 
Options exercised(165)46.38 
Balance as of November 30, 202239552.60 
Options granted— — 
Options exercised(100)45.50
Options cancelled
(1)30.70
Balance as of November 30, 202329454.45 
Options granted— — 
Options exercised(56)42.60
Balance as of November 30, 2024238$57.21 
(1)Amounts represent the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK stock options that were assumed by Concentrix pursuant to the merger agreement with PK.
As of November 30, 2024, 238 options were outstanding with a weighted-average life of 3.79 years and an aggregate pre-tax intrinsic value of $483. As of November 30, 2024, 233 options were vested and exercisable with a weighted-average life of 3.74 years, a weighted-average exercise price of $55.89 per share, and an aggregate pre-tax intrinsic value of $483.
As of November 30, 2024, the unamortized share-based compensation expense related to unvested stock options under the Concentrix Stock Incentive Plan was $178, which will be recognized over an estimated weighted-average amortization period of 0.85 years.
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units
The fair value of restricted stock awards and restricted stock units granted under the Concentrix Stock Incentive Plan in fiscal years 2024, 2023 and 2022 were determined based on the trading price of Concentrix common stock on the date of grant. The awards are expensed on a straight line basis over the vesting term, typically three or four years. The holders of restricted stock awards are entitled to the same voting, dividend and other rights as holders of Concentrix common stock.
In fiscal years 2024, 2023 and 2022, the Company granted performance-based restricted stock units to the Company’s senior executive team. The performance-based restricted stock units will vest, if at all, upon the achievement of certain annual financial targets during the three-year periods ending November 30, 2026, November 30, 2025 and November 30, 2024, respectively.
In April 2024, the Company granted performance-based restricted stock units under the Concentrix Stock Incentive Plan. The performance-based restricted stock units will vest, if at all, upon the achievement of certain financial targets during the three-year period ending November 30, 2026.
A summary of the changes in the non-vested restricted stock awards, restricted stock units, and performance-based stock units during fiscal years 2022, 2023, and 2024, including the conversion of former parent awards and stock units previously discussed, is presented below:
Number of shares
(in thousands)
Weighted-average,
grant-date
fair value per share
Non-vested as of November 30, 2021980 $109.92 
Awards granted510 139.31 
Units granted (1)
294 130.98 
Awards and units vested(283)91.62 
Awards and units cancelled/forfeited(106)118.79 
Non-vested as of November 30, 20221,395 124.69 
Awards granted60 135.01 
Units granted (1)
1,828 74.64 
Performance-based units vested in excess of target (2)
17 159.97 
Awards and units vested(513)122.76 
Awards and units cancelled/forfeited(114)138.88 
Non-vested as of November 30, 20232,673 92.80 
Awards granted— — 
Units granted (1)
2,824 52.94 
Awards and units vested(849)92.02 
Awards and units cancelled/forfeited(337)84.94 
Non-vested as of November 30, 20244,311 $68.35 
(1)For performance-based restricted stock units, the target number of shares that can be awarded upon full vesting of the grants is included.
(2)Amounts represent performance-based awards that vested in excess of the target number of shares for the fiscal year 2021 performance-based grants.
As of November 30, 2024, there was $227,830 of total unamortized share-based compensation expense related to non-vested restricted stock awards, restricted stock units and performance-based restricted stock units granted under the Concentrix Stock Incentive Plan. That cost is expected to be recognized over an estimated weighted-average amortization period of 2.25 years.