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Capital Stock and Equity Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Capital Stock and Equity Compensation Capital Stock and Equity Compensation
Equity Compensation
Equity Compensation Expense
The components of equity compensation expense were as follows:
Three Months Ended
(Dollars in millions)March 31, 2026March 31, 2025
Performance-based restricted stock units expense$— $1.8 
Time-based restricted stock units expense1.3 1.7 
Deferred stock units expense0.3 0.1 
Other0.1 — 
Total equity compensation expense$1.7 $3.6 
Performance-Based Restricted Stock Units
As of March 31, 2026, we had outstanding performance-based restricted stock units with a market condition from 2026, 2025 and 2024. These awards generally cliff vest at the end of a three-year measurement period. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed during the measurement period. Participants are eligible to be awarded shares ranging from 0% to 200% of the original award amount, based on certain defined performance measures.
The performance-based restricted stock units with a market condition have one measurement criterion: the three-year total shareholder return on our capital stock as compared to that of a specified group of peer companies. The fair value of this measurement criterion was determined on the grant date using a Monte Carlo simulation valuation model. We recognize
compensation expense on all of these awards on a straight-line basis over the vesting period with no changes for final projected payout of the awards. We account for forfeitures as they occur.
The following table sets forth the assumptions used in the Monte Carlo calculation for each material award granted in 2026 and 2025:
February 18, 2026February 12, 2026February 26, 2025
Expected volatility34.7%34.6%45.6%
Expected term (in years)2.9 years2.9 years2.9 years
Risk-free interest rate3.44%3.43%4.28%
Expected volatility – In determining expected volatility, we have considered a number of factors, including historical volatility.
Expected term – We use the vesting period of the award to determine the expected term assumption for the Monte Carlo simulation valuation model.
Risk-free interest rate – We use an implied “spot rate” yield on U.S. Treasury Constant Maturity rates as of the grant date for our assumption of the risk-free interest rate.
Expected dividend yield – We do not currently pay dividends on our capital stock; therefore, a dividend yield of 0% was used in the Monte Carlo simulation valuation model.
As of March 31, 2026, we had outstanding performance-based restricted stock units with a financial performance condition granted in 2026. These awards are subject to a three-year performance period covering January 1, 2026 through December 31, 2028 and generally vest, if at all, following the completion of the performance period. Employees whose employment terminates during the performance period due to death, disability, or, in certain cases, qualified retirement may be eligible to receive a pro‑rata payout based on the number of days employed during the performance period.
The performance-based restricted stock units with a financial performance condition have one performance criterion: annual net sales growth, measured over the three-year performance period, with the final payout determined based on the average payout level achieved for each year. The fair value of these awards was determined based on the market value of the Company’s common stock on the grant date, with cumulative compensation expense recognized to date adjusted based on changes in the estimated payout percentage at the end of each reporting period. As of March 31, 2026, the performance condition was considered probable of achievement. Accordingly, compensation expense has been recognized based on this estimated payout level. The Company accounts for forfeitures as they occur.
A summary of activity of the outstanding performance-based restricted stock units for the three months ended March 31, 2026 is presented below:
Performance-Based
Restricted Stock Units
Awards outstanding as of December 31, 2025109,916 
Awards granted39,560 
Stock issued— 
Awards forfeited/cancelled(56,599)
Awards outstanding as of March 31, 202692,877 
Time-Based Restricted Stock Units
As of March 31, 2026, we had time-based restricted stock unit awards from 2026, 2025 and 2024 outstanding. The outstanding awards all ratably vest on the first, second and third anniversaries of the original grant date. However, employees whose employment terminates during the measurement period due to death, disability, or, in certain cases, retirement may receive a pro-rata payout based on the number of days they were employed subsequent to the last grant anniversary date. Each time-based restricted stock unit represents a right to receive one share of Rogers’ capital stock at the end of the vesting period. The fair value of the award is determined by the market value of the underlying stock price on the grant date. We recognize compensation expense on all of these awards on a straight-line basis over the vesting period. We account for forfeitures as they occur.
A summary of activity of the outstanding time-based restricted stock units for the three months ended March 31, 2026 is presented below:
Time-Based
Restricted Stock Units
Awards outstanding as of December 31, 2025115,905 
Awards granted53,307 
Stock issued(40,457)
Awards forfeited/cancelled(17,306)
Awards outstanding as of March 31, 2026111,449 
Deferred Stock Units
We grant deferred stock units to non-management directors. These awards will generally vest at the one-year anniversary of the award, subject to continuous service. Each deferred stock unit results in the issuance of one share of Rogers’ capital stock. The grant of deferred stock units is typically done annually during the second quarter of each year. The fair value of the award is determined by the market value of the underlying stock price on the grant date.
A summary of activity of the outstanding deferred stock units for the three months ended March 31, 2026 is presented below:
Deferred Stock Units
Awards outstanding as of December 31, 202523,566 
Awards granted— 
Stock issued(536)
Awards outstanding as of March 31, 202623,030