Equity Plans

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

SJW Group’s long-term incentive plans 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 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 SJW Group’s employee stock purchase plan (“ESPP”). As of March 31, 2024, 181,280 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units and an additional 1,055,383 shares are available for award issuances under the long-term incentive plans.

A summary of compensation costs charged to income, by award type, and proceeds from the ESPP, are presented below for the three months ended March 31, 2024 and 2023:


	Three months ended March 31,
	2024		2023
Compensation costs charged to income:
ESPP	$	195	191
Restricted stock and deferred restricted stock	1,343		1,008
Total compensation costs charged to income	$	1,538	1,199
ESPP proceeds	$	1,101	1,080

Restricted Stock and Deferred Restricted Stock

For the three months ended March 31, 2024 and 2023, SJW Group granted 37,520 and 27,732, respectively, one year and three year service-based restricted stock awards with a weighted-average grant date fair value per unit of $61.10 and $77.88, respectively.

For the three months ended March 31, 2024 and 2023, SJW Group granted 44,433 and 31,345 target units, respectively, of performance-based and market-based restricted stock awards with a weighted-average grant date fair value per unit of $53.69 and $80.05, 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, 2024, the total unrecognized compensation costs related to restricted and deferred restricted stock plans was $8,149. This cost is expected to be recognized over a weighted-average period of 2.17 years.

Employee Stock Purchase Plan

SJW Group’s recorded expenses for its ESPP were $97 and $90 for the three months ended March 31, 2024 and 2023, respectively. The total unrecognized compensation costs related to the semi-annual offering period that ends July 31, 2024, for the employee stock purchase plan is approximately $141. This cost is expected to be recognized during the second and third quarters of 2024.