XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.25.2

Share-Based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | 10. Share-Based Compensation The Company has an active equity incentive plan, the Alight, Inc. 2021 Omnibus Incentive Plan (the "Incentive Plan"), under which the Company has been authorized to grant share-based awards to key employees and non-employee directors, which consist primarily of time-based restricted stock units ("RSUs") and performance share units ("PRSUs"). Under this plan, for grants issued during the six months ended June 30, 2025, approximately 56% of the units are subject to time-based vesting requirements and approximately 44% are subject to additional performance-based vesting requirements. As of June 30, 2025, there were 91,065,377 remaining shares of common stock authorized for issuance pursuant to the Company’s stock-based compensation plans under its 2021 Omnibus Incentive Plan. RSU and PSU nonvested share-based payment awards contain rights to receive forfeitable dividends and therefore are not participating securities. Restricted Share Units and Performance Share Units Time-based RSUs are valued at the market price of a share of the Company’s common stock on the date of grant. In general, these awards vest ratably over a three-year period from the date of grant. All awards are expensed on a straight-line basis over a three-year period, which is considered to be the requisite service period. The Company’s PRSUs contain various performance and service conditions that must be satisfied for an employee to earn the right to benefit from the award. The PRSUs vest upon achievement of various performance metrics aligned to goals established by the Company. Expense is recognized on a straight-line basis over the requisite service period, based on the probability of achieving the performance conditions, with changes in expectations recognized as an adjustment to earnings in the period of the change. Compensation cost is not recognized for performance share units that do not vest because service or performance conditions are not satisfied, and any previously recognized compensation cost is reversed. The weighted-average grant-date fair value per share of RSUs and PRSUs granted during each of the six months ended June 30, 2025 and 2024 were approximately $6.17 and $8.94, and $6.49 and $8.81, respectively. The following table summarizes the RSU and PRSU activity during the six months ended June 30, 2025:
|  | RSUs |  | Weighted Average Grant Date Fair Value Per Unit |  | PRSUs(1) |  | Weighted Average Grant Date Fair Value Per Unit
Balance as of December 31, 2024 |  | 7,325,106 |  | $ | 8.67 |  |  | 10,878,456 |  | $ | 8.71 |
Granted |  | 4,713,770 |  | 6.17 |  |  | 4,219,966 |  | 6.49 |
Vested |  | (2,532,026) |  | 8.76 |  |  | (2,959,843) |  | 8.83 |
Forfeited |  | (2,101,679) |  | 8.30 |  |  | (6,232,064) |  | 8.48 |
Balance as of June 30, 2025 |  | 7,405,171 |  | $ | 7.13 |  |  | 5,906,515 |  | $ | 7.28 |
_______________________________________________________ (1)The number of PRSUs presented are based on actual or expected achievement of the respective performance goals as of the end of the period. Share-based Compensation Expense Total share-based compensation expense related to the RSUs and PRSUs are recorded in the Condensed Consolidated Statements of Comprehensive Income (Loss) as follows (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Cost of services, exclusive of depreciation and amortization | $ | 2 |  |  | $ | 3 |  |  | $ | 5 |  |  | $ | 8 |  |  |
Selling, general and administrative | 3 |  |  | 17 |  |  | 6 |  |  | 40 |  |  |
Total share-based compensation expense | $ | 5 |  |  | $ | 20 |  |  | $ | 11 |  |  | $ | 48 |  |  |
As of June 30, 2025, total future compensation expense related to unvested RSUs was $44 million, which will be recognized over a remaining weighted-average amortization period of approximately 2.15 years. As of June 30, 2025, total future compensation expense related to unvested PRSUs was $31 million, which will be recognized over a remaining weighted-average amortization period of approximately 1.77 years. Employee Stock Purchase Plan In December 2022, the Company began offering its employees an Employee Stock Purchase Plan (the “ESPP”). Under the ESPP, all full-time and certain part-time employees of the Company based in the U.S. and certain other countries are eligible to purchase Class A Common Stock of the Company twice per year at the end of a six-month payment period (a “Payment Period”). During each Payment Period, eligible employees who so elect may authorize payroll deductions in an amount no less than 1% nor greater than 10% of his or her base pay for each payroll period in the Payment Period. At the end of each Payment Period, the accumulated deductions are used to purchase shares of Class A Common Stock from the Company up to a maximum of 1,250 shares for any one employee during a Payment Period. Shares are purchased at a price equal to 85% of the fair market value of the Company’s Class A Common Stock on the last business day of a Payment Period. As of June 30, 2025, there were 12,792,789 remaining shares available for grant and 3,481,139 shares issued under the ESPP. The amount of share-based compensation expense related to the ESPP was approximately $0.2 million and $0.5 million for the three and six months ended June 30, 2025, respectively, and $0.3 million and $0.8 million for the three and six months ended June 30, 2024, respectively, which was recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income (Loss).

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration