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Stock-based Compensation | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation | Note 24. Stock-based Compensation The Company’s total stock-based compensation expense amounted to $15, $18, and $27 for the years ended December 31, 2024, 2023 and 2022, respectively. The total stock-based compensation expense for the year ended December 31, 2024 includes $3 for modifications of the vested stock options granted to the former President and Chief Executive Officer and former Chief Financial Officer, partially offset by a $1 reduction in stock-based compensation expense related to negative discretion applied to certain vested performance share units held by former members of senior management. In 2017, Chemours’ stockholders approved Chemours’ Equity and Incentive Plan (the “Equity Plan”), which provides for grants to certain employees, independent contractors, or non-employee directors of the Company of different forms of awards, including stock options, restricted stock units ("RSUs"), performance stock units ("PSUs") and performance stock options ("PSOs"), with 19,000,000 shares reserved for issuance. The Equity Plan replaced the Company’s prior plan adopted at Separation (the “Prior Plan”). As a result, no further grants will be made under the Prior Plan. On April 28, 2021, Chemours’ stockholders approved an amendment and restatement of the Equity Plan to increase the number of shares of the Company’s common stock reserved for issuance by 3,050,000 shares. Following the amendment and restatement of the Equity Plan, a total of 22,050,000 shares of the Company’s common stock may be subject to awards granted under the Equity Plan, less one share for every one share that was subject to an option or stock appreciation right granted after December 31, 2016 under the Prior Plan, and one-and-a-half shares for every one share that was subject to an award other than an option or stock appreciation right granted after December 31, 2016 under the Prior Plan. Any shares that are subject to options or stock appreciation rights will be counted against this limit as one share for every one share granted, and any shares that are subject to awards other than options or stock appreciation rights will be counted against this limit as one-and-a-half shares for every one share granted. Awards that were outstanding under the Prior Plan remain outstanding under the Prior Plan in accordance with their terms. The underlying share awards granted under the Prior Plan after December 31, 2016 that are forfeited, cancelled, or that otherwise do not result in the issuance of shares, will be available for issuance under the Equity Plan. At December 31, 2024, approximately 9,500,000 shares of the Equity Plan reserve are available for grants. The Chemours Compensation and Leadership Development Committee determines the long-term incentive mix, including stock options, RSUs, PSUs and PSOs, and may authorize new grants annually. Stock Options During the years ended December 31, 2024, 2023 and 2022, Chemours granted non-qualified stock options to certain of its employees, which will vest over a three-year period and expire 10 years from the date of grant. The fair values of the Company’s stock options are based on the Black-Scholes valuation model. The following table sets forth the weighted-average assumptions used at the respective grant dates to determine the fair values of the Company’s stock option awards granted during the years ended December 31, 2024, 2023 and 2022.
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Risk-free interest rate |  |  | 4.45 | % |  |  | 4.18 | % |  |  | 1.61 | %
Expected term (years) |  |  | 6.00 |  |  |  | 6.00 |  |  |  | 6.00 |
Volatility |  |  | 49.02 | % |  |  | 55.63 | % |  |  | 56.71 | %
Dividend yield |  |  | 3.64 | % |  |  | 2.87 | % |  |  | 3.85 | %
Fair value per stock option |  | $ | 10.28 |  |  | $ | 15.36 |  |  | $ | 9.89 |
The Company determined the dividend yield by dividing the expected annual dividend on the Company's stock by the option exercise price. A historical daily measurement of volatility is determined based on the blended volatilities of Chemours and the average of its peer companies, adjusted for Chemours’ debt leverage. The risk-free interest rate is determined by reference to the yield on an outstanding U.S. Treasury note with a term equal to the expected term of the option granted. The expected term is determined using a simplified approach, calculated as the mid-point between the graded vesting period and the contractual life of the award. The following table sets forth Chemours’ stock option activity for the years ended December 31, 2024, 2023 and 2022.
|  | Number of Shares (in Thousands) |  |  | Weighted-average Exercise Price (per Share) |  |  | Weighted-average Remaining Contractual Term (in Years) |  |  | Aggregate Intrinsic Value (in Thousands) |
Outstanding, December 31, 2021 |  |  | 6,967 |  |  | $ | 20.32 |  |  |  | 6.60 |  |  | $ | 101,261 |
Granted |  |  | 1,031 |  |  |  | 25.98 |  |  |  |  |  |  |
Exercised |  |  | (3,041 | ) |  |  | 16.76 |  |  |  |  |  |  |
Forfeited |  |  | (202 | ) |  |  | 21.29 |  |  |  |  |  |  |
Expired |  |  | (87 | ) |  |  | 32.78 |  |  |  |  |  |  |
Outstanding, December 31, 2022 |  |  | 4,668 |  |  | $ | 23.61 |  |  |  | 7.08 |  |  | $ | 42,668 |
Granted |  |  | 560 |  |  |  | 34.82 |  |  |  |  |  |  |
Exercised |  |  | (1,153 | ) |  |  | 16.84 |  |  |  |  |  |  |
Forfeited |  |  | (296 | ) |  |  | 29.04 |  |  |  |  |  |  |
Expired |  |  | (169 | ) |  |  | 39.02 |  |  |  |  |  |  |
Outstanding, December 31, 2023 |  |  | 3,610 |  |  | $ | 26.35 |  |  |  | 6.51 |  |  | $ | 27,760 |
Granted |  |  | 705 |  |  |  | 27.50 |  |  |  |  |  |  |
Exercised |  |  | (453 | ) |  |  | 18.23 |  |  |  |  |  |  |
Forfeited |  |  | (290 | ) |  |  | 30.01 |  |  |  |  |  |  |
Expired |  |  | (267 | ) |  |  | 40.04 |  |  |  |  |  |  |
Outstanding, December 31, 2024 |  |  | 3,305 |  |  | $ | 26.28 |  |  |  | 6.22 |  |  | $ | 3,294 |
Exercisable, December 31, 2024 |  |  | 2,319 |  |  | $ | 25.27 |  |  |  | 5.12 |  |  | $ | 3,307 |
The aggregate intrinsic values in the preceding table represent the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day at the end of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options at year-end. The amount changes based on the fair market value of the Company’s stock. The total intrinsic value of all options exercised for the years ended December 31, 2024, 2023 and 2022 amounted to $1, $17, and $45, respectively. For the years ended December 31, 2024, 2023 and 2022, the Company recorded $8, $8, and $8 in stock-based compensation expense specific to its stock options, respectively. At December 31, 2024, there was $5 of unrecognized stock-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.02 years. Restricted Stock Units Chemours grants RSUs to key management employees that generally vest over a three-year period and, upon vesting, convert one-for-one to Chemours’ common stock. The fair value of all stock-settled RSUs is based on the market price of the underlying common stock at the grant date. RSUs vest contingent upon a time-based vesting condition and do not have explicit performance conditions. The following table sets forth non-vested RSUs at December 31, 2024, 2023 and 2022.
|  | Number of Shares (in Thousands) |  |  | Weighted-average Grant Date Fair Value (per Share) |
Non-vested, December 31, 2021 |  |  | 1,159 |  |  | $ | 22.20 |
Granted |  |  | 388 |  |  |  | 28.08 |
Vested |  |  | (473 | ) |  |  | 20.97 |
Forfeited |  |  | (77 | ) |  |  | 21.75 |
Non-vested, December 31, 2022 |  |  | 997 |  |  | $ | 25.10 |
Granted |  |  | 497 |  |  |  | 33.22 |
Vested |  |  | (391 | ) |  |  | 20.71 |
Forfeited |  |  | (236 | ) |  |  | 18.84 |
Non-vested, December 31, 2023 |  |  | 867 |  |  | $ | 30.86 |
Granted |  |  | 430 |  |  |  | 25.02 |
Vested |  |  | (343 | ) |  |  | 28.65 |
Forfeited |  |  | (152 | ) |  |  | 32.50 |
Non-vested, December 31, 2024 |  |  | 802 |  |  | $ | 28.36 |
For the years ended December 31, 2024, 2023 and 2022, the Company recorded $9, $9, and $11 in stock-based compensation expense specific to its RSUs, respectively. At December 31, 2024, there was $12 of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 1.12 years. Performance Share Units Chemours grants PSUs to key senior management employees which, upon vesting, convert one-for-one to Chemours’ common stock if specified performance goals, including certain market-based conditions, are met over the three-year performance period specified in the grant, subject to exceptions through the respective vesting period of three years. Each grantee is granted a target award of PSUs, and may earn between 0% and 200% of the target amount depending on the Company’s performance against stated performance goals. The following table sets forth non-vested PSUs at 100% of target amounts at December 31, 2024, 2023 and 2022.
|  | Number of Shares (in Thousands) |  |  | Weighted-average Grant Date Fair Value (per Share) |
Non-vested, December 31, 2021 |  |  | 755 |  |  | $ | 26.72 |
Granted |  |  | 316 |  |  |  | 28.77 |
Vested |  |  | (213 | ) |  |  | 43.83 |
Forfeited |  |  | — |  |  |  | — |
Non-vested, December 31, 2022 |  |  | 858 |  |  | $ | 22.48 |
Granted |  |  | 103 |  |  |  | 40.64 |
Vested |  |  | (410 | ) |  |  | 17.14 |
Forfeited |  |  | (158 | ) |  |  | 30.63 |
Non-vested, December 31, 2023 |  |  | 393 |  |  | $ | 31.41 |
Granted |  |  | 73 |  |  |  | 32.77 |
Vested |  |  | (103 | ) |  |  | 26.68 |
Forfeited |  |  | (272 | ) |  |  | 32.84 |
Non-vested, December 31, 2024 |  |  | 91 |  |  | $ | 33.57 |
A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions associated with the PSUs using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based conditions are satisfied. The per unit weighted-average fair value at the date of grant for PSUs granted during the year ended December 31, 2024 was $32.77. The fair value of each PSU grant is amortized monthly into compensation expense based on its respective vesting conditions over a three-year period. Compensation cost is incurred based on the Company’s estimate of the final expected value of the award, which is adjusted as required for the portion based on the performance-based condition. The Company assumes that forfeitures will be minimal and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. For the year ended December 31, 2024, the Company recorded a reduction of stock-based compensation expense of $3 specific to its PSUs. For the years ended December 31, 2023 and 2022, the Company recorded stock-based compensation expense of less than $1 and $8 specific to its PSUs, respectively. At December 31, 2024, based on the Company’s assessment of its performance goals, approximately 188,000 additional shares may be awarded under the Equity Plan. Performance Stock Options During the years ended December 31, 2024 and 2023, Chemours granted PSOs to certain of its key senior management employees. These awards have a strike price that is 10% above the closing stock value on the grant date and become exercisable when vested and this market condition is satisfied. These awards will vest over a three-year period and expire 10 years from the date of grant. The fair value of the Company's PSOs was estimated using a Monte Carlo valuation method. The following table sets forth the assumptions used at the grant date to determine the fair value of the Company's performance stock option awards granted during the years ended December 31, 2024 and 2023.
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Risk-free interest rate |  |  | 4.43 | % |  |  | 4.13 | %
Expected term (years) |  |  | 6.09 |  |  |  | 7.00 |
Volatility |  |  | 48.91 | % |  |  | 56.32 | %
Dividend yield |  |  | 3.64 | % |  |  | 2.87 | %
Fair value per performance stock option (1) |  | $ | 10.05 |  |  | $ | 14.97 |
(1) Represents the weighted-average fair value at each point of projected exercise under the Monte Carlo valuation method. The Company determined the dividend yield by dividing the expected annual dividend on the Company's stock by the option exercise price. A historical daily measurement of volatility is determined based on the blended volatilities of Chemours and the average of its peer companies, adjusted for Chemours’ debt leverage. The risk-free interest rate is determined by reference to the yield on an outstanding U.S. Treasury note with a term equal to the expected term of the option granted. The expected term is determined using a simplified approach, calculated as the mid-point between the graded vesting period and the contractual life of the award.
|  | Number of Shares (in Thousands) |  |  | Weighted-average Exercise Price (per Share) |  |  | Weighted-average Remaining Contractual Term (in Years) |  |  | Aggregate Intrinsic Value (in Thousands) |
Outstanding, December 31, 2022 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Granted |  |  | 239 |  |  |  | 38.32 |  |  |  |  |  |  |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |
Forfeited |  |  | (64 | ) |  |  | 38.32 |  |  |  |  |  |  |
Expired |  |  | — |  |  |  | — |  |  |  |  |  |  |
Outstanding, December 31, 2023 |  |  | 175 |  |  | $ | 38.32 |  |  |  | 9.17 |  |  | $ | — |
Granted |  |  | 204 |  |  |  | 30.25 |  |  |  |  |  |  |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |
Forfeited |  |  | (97 | ) |  |  | 37.27 |  |  |  |  |  |  |
Expired |  |  | — |  |  |  | — |  |  |  |  |  |  |
Outstanding, December 31, 2024 |  |  | 282 |  |  | $ | 32.85 |  |  |  | 8.97 |  |  | $ | — |
Exercisable, December 31, 2024 |  |  | 57 |  |  | $ | 38.32 |  |  |  | 8.17 |  |  | $ | — |
The aggregate intrinsic values in the preceding table represent the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day at the end of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options at year-end. The amount changes based on the fair market value of the Company’s stock. For each the years ended December 31, 2024 and 2023, the Company recorded $1 in stock-based compensation expense specific to its PSOs. At December 31, 2024, there was $1 of unrecognized stock-based compensation expense related to PSOs, which is expected to be recognized over a weighted-average period of 2.20 years. Employee Stock Purchase Plan Since 2017, the Company has provided employees the opportunity to participate in Chemours’ Employee Stock Purchase Plan (“ESPP”). Under the ESPP, a total of 7,000,000 shares of Chemours’ common stock is reserved and authorized for issuance to participating employees, as defined by the ESPP, which excludes executive officers of the Company. The ESPP provides for consecutive 12-month offering periods, each with two purchase periods in March and September within those offering periods. Participating employees are eligible to purchase the Company’s common stock at a discounted rate equal to 95% of its fair value on the last trading day of each purchase period. To date, the Company has executed open market transactions to purchase the Company’s common stock on behalf of its ESPP participants, which amounted to 354,000 shares. The total amount of Chemours’ common stock received by employees in connection with the ESPP amounted to $9 at December 31, 2024.

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