Our employee share-based compensation plans include our employee stock purchase plan and our long-term incentive plan. Effective April 27, 2022, our shareholders approved the Deluxe Corporation 2022 Stock Incentive Plan, which simultaneously terminated our previous plan. Under the new plan, 2.5 million shares of common stock, along with any shares

released due to the forfeiture or termination of awards issued under the prior plan, are reserved for issuance. As of December 31, 2024, 1.5 million shares remained available for issuance.

Under both our current and previous plans, we have granted non-qualified stock options, restricted stock units, and performance share unit awards. The current plan also permits the issuance of restricted stock and stock appreciation rights, although none of these were outstanding as of December 31, 2024. Our policy regarding the recognition of compensation expense for employee share-based awards can be found in Note 1.

The following amounts were recognized in our consolidated statements of income for share-based compensation awards for the years ended December 31:


(in thousands)	2024		2023		2022
Restricted stock units	$	14,058	$	14,092	$	16,632
Performance share unit awards	4,705		4,127		3,840
Stock options	733		1,845		2,665
Employee stock purchase plan	448		461		539
Total share-based compensation expense	$	19,944	$	20,525	$	23,676
Income tax benefit	$	(6,347)	$	(7,408)	$	(6,853)

As of December 31, 2024, the total compensation expense for unvested awards not yet recognized in our consolidated statements of income was $21,297, net of the effect of estimated forfeitures. This amount is expected to be recognized over a weighted-average period of 1.7 years.

Non-qualified stock options – All options permit the purchase of shares of common stock at prices equal to the market value of the stock on the grant date. Options become exercisable starting one year after the grant date, with one-fourth vesting each year over four years. Options granted under the current plan can be exercised for up to 10 years following the grant date, while awards granted prior to 2019 have a seven year life. No stock options were granted during the past three years.

Each option can be converted into one share of common stock upon exercise. Information regarding options issued under the current and all previous plans was as follows:


	Number of options (in thousands)	Weighted-average exercise price per option		Aggregate intrinsic value(1) (in thousands)		Weighted-average remaining contractual term (in years)
Outstanding at December 31, 2023	1,380	$	44.91
Forfeited or expired	(183)	50.63
Outstanding at December 31, 2024	1,197	44.03		$	—	4.1
Exercisable at December 31, 2024	1,147	44.15		$	—	4.0

(1) The intrinsic value of a stock award is defined as the amount by which the fair value of the underlying stock exceeds the exercise price of the award.

Restricted stock units – We grant RSU awards under our long-term incentive plan, which generally vest over periods ranging from two to four years. In addition to the awards granted to employees, non-employee members of our board of directors can elect to receive all or a portion of their fees in the form of RSUs.


	Number of units (in thousands)	Weighted-average grant date fair value per unit		Weighted-average remaining vesting period (in years)
Outstanding at December 31, 2023	1,221	$	23.34
Granted	925	20.35
Vested	(556)	23.47
Forfeited	(118)	21.37
Outstanding at December 31, 2024	1,472	21.57		2.4

Performance share unit awards – Our PSU awards have a three-year vesting period. Shares are issued at the end of the vesting period if performance targets related to revenue and total shareholder return are met. If employment is terminated for any reason prior to the one year anniversary of the commencement of the performance period, the award is forfeited. On or after the one year anniversary of the commencement of the performance period, a pro-rata portion of the shares awarded at the end of the performance period is issued in the case of qualified retirement, death, disability, involuntary termination without cause, or resignation for good reason, as defined in the agreement.

The following weighted-average assumptions were used in the Monte Carlo simulation model to determine the fair value of market-based PSUs granted:

The risk-free interest rate for periods within the expected award life is derived from the U.S. Treasury yield curve in effect at the grant date. The dividend yield is estimated over the expected life of the award, based on historical dividends paid. Expected volatility is calculated using the historical volatility of our stock over the expected life of the award.

Information regarding unvested PSUs was as follows:


	Performance share units (in thousands)	Weighted-average grant date fair value per unit		Weighted-average remaining contractual term (in years)
Unvested at December 31, 2023	524	$	28.50
Granted(1)	273	18.56
Vested	(65)	47.62
Forfeited	(41)	33.35

Unvested at December 31, 2024	691	22.47		1.3

Employee stock purchase plan – During 2024, 159 thousand shares were issued under this plan at prices ranging from $13.76 to $16.91. During 2023, 196 thousand shares were issued at prices ranging from $12.61 to $15.77. During 2022, 149 thousand shares were issued at prices ranging from $15.62 to $25.59.