Equity Plans

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

The Incentive Plan allows SJW Group to provide employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the company or any parent or subsidiary the opportunity to acquire an equity interest in SJW Group. SJW Group also maintains stock plans in connection with its acquisition of CTWS which are no longer granting new stock awards. In addition, shares are issued to employees under the ESPP that was approved by SJW Group stockholders. As of March 31, 2023, 160,381 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units and an additional 573,558 shares are available for award issuances under the Incentive Plan.

On April 26, 2023, SJW Group adopted the successor plans for the Incentive Plan and ESPP (collectively, the “Predecessor Plans”) to replace the Predecessor Plans. The Incentive Plan terminated on April 23, 2023 and ESPP will terminate on July 31, 2023. The 2023 Long-Term Incentive Plan reserves for a total of 1,142,000 shares of SJW Group’s common stock for issuance to employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the SJW Group and its subsidiaries. The 2023 Employee Stock Purchase Plan reserves for a total of 500,000 shares of SJW Group’s common stock for issuance for eligible employees to purchase common stock at a discount through accumulated payroll deductions. Remaining reserves for both of the Predecessor Plans will be terminated with the adoption of the successor plans.

A summary of compensation costs charged to income and proceeds from the exercise of restricted stock and similar instruments that are recorded to additional paid-in capital and common stock, by award type, are presented below for the three months ended March 31, 2023, and 2022:


	Three months ended March 31,
		2023		2022
Compensation costs charged to income:
ESPP		$	191	185
Restricted stock and deferred restricted stock		1,008		1,367
Total compensation costs charged to income		$	1,199	1,552
ESPP proceeds		$	1,080	1,049

Restricted Stock and Deferred Restricted Stock

For the three months ended March 31, 2023, and 2022, SJW Group granted under the Incentive Plan 27,732 and 31,399, respectively, one year and three year service-based restricted stock awards with a weighted-average grant date fair value per unit of $77.88 and $68.37, respectively.

For the three months ended March 31, 2023, and 2022, SJW Group granted under the Incentive Plan 31,345 and 33,621 target units, respectively, performance-based and market-based restricted stock awards granted with a weighted-average grant date fair value per unit of $80.05 and $70.35, respectively. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares for performance-based restricted stock awards, or between 0% and 200% of the target number of shares for market-based restricted stock awards.

As of March 31, 2023, the total unrecognized compensation costs related to restricted and deferred restricted stock plans was $7,537. This cost is expected to be recognized over a weighted-average period of 2.26 years.

Employee Stock Purchase Plan

SJW Group’s recorded expenses for its ESPP were $90 and $93 for the three months ended March 31, 2023 and 2022, respectively. The total unrecognized compensation costs related to the semi-annual offering period that ends July 31, 2023, for the ESPP is approximately $133. This cost is expected to be recognized during the second and third quarters of 2023.