Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Stock-Based Compensation

Schedule of stock option activity associated with employees

	For the Year Ended December 31, 2023
	Options	Weighted- Average Exercise Price		Aggregate intrinsic value (In thousands)		Weighted Average Remaining Contractual Life
Total options outstanding, beginning of period	3,877,308	$	72.53
Granted	355,652	$	34.42
Exercised	—	$	—
Forfeited, cancelled and transferred (1)(2)	(944,927)	$	81.57
Total options outstanding, end of period	3,288,033	$	65.81	$	—	6.94
Performance-based options outstanding, end of period (3)	815,370	$	96.55
Exercisable at end of period	1,326,093	$	59.06	$	—	6.24

(1) Includes the cancellation of the 2013 LTIP. See discussion below.

(2) Certain of these stock options include options that were granted to individuals who transferred to and/or from another EchoStar subsidiary not a part of DISH DBS.

(3) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2017 LTIP, 2019 LTIP, 2022 Incentive Plan and Other Employee Performance Awards below.

Schedule of realized tax benefits from stock awards exercised

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands)
Tax benefit from stock awards exercised	$	871	$	206	$	3,815

Schedule of aggregate intrinsic value of stock options associated with employees

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands, except per share amounts)
Stock options:
Weighted-average grant date fair value of options granted	$	34.42	$	66.92	$	115.57
Intrinsic value of options exercised (1)	$	—	$	61	$	6,370
Restricted stock units and awards:
Weighted-average grant date fair value of units and awards granted	$	17.18	$	84.56	$	120.84
Fair value of units and rewards vested (1)	$	4,030	$	874	$	262

(1) Intrinsic value and fair value is based on the closing market price of EchoStar’s Class A Common Stock on December 31, 2023.

Schedule of restricted stock unit activity

	For the Year Ended December 31, 2023
	Restricted Stock Units/Awards		Weighted- Average Grant Date Fair Value
Total restricted stock units/awards outstanding, beginning of period	379,073	$	100.69
Granted	5,534	$	17.18
Vested	(208,520)	$	92.71
Forfeited, cancelled and transferred (1)	(172,109)	$	107.22
Total restricted stock units/awards outstanding, end of period	3,978	$	120.95

(1) Certain of these restricted stock units/awards include restricted stock units/awards that were granted to individuals who transferred to and/or from another EchoStar subsidiary not a part of DISH DBS.

Schedule of non-cash, stock-based compensation expense recognized

	For the Years Ended December 31,
Non-Cash, Stock-Based Compensation Expense Recognized (1)	2023		2022		2021
	(In thousands)
2022 Incentive Plan	$	5,573	$	15,024	$	—
2019 LTIP		(1,631)		(131)		370
2013 LTIP		—		—		(10,550)
Other employee performance awards		281		3,711		7,827
Total non-cash, stock-based compensation expense recognized for performance-based awards	$	4,223	$	18,604	$	(2,353)

(1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes actual forfeitures.

Schedule of unrecognized non-cash, stock-based compensation expense

Estimated Remaining Non-Cash, Stock-Based Compensation Expense	2022 Incentive Plan		2019 LTIP		Other Employee Performance Awards
	(In thousands)
Expense estimated to be recognized during 2024	$	1,714	$	—	$	—
Estimated contingent expense subsequent to 2024		902		—		—
Total estimated remaining expense over the term of the plan	$	2,616	$	—	$	—

Schedule of awards outstanding pursuant to performance-based stock incentive plans

	As of December 31, 2023
Performance-Based Stock Options	Number of Awards	Weighted- Average Grant Price
2022 Incentive Plan	303,379	$	51.17
2019 LTIP	193,452	$	59.16
2017 LTIP	318,539	$	162.47
Total	815,370	$	96.55

Schedule of allocated non-cash, stock-based compensation expense for all employees

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands)
Cost of services	$	2,240	$	5,817	$	4,170
Selling, general and administrative		12,018		34,915		7,660
Total non-cash, stock based compensation	$	14,258	$	40,732	$	11,830

Schedule of assumptions of Black-Scholes option valuation model

	For the Years Ended December 31,
Stock Options	2023							2022							2021
Risk-free interest rate		3.58	%	-		4.61	%		1.35	%	-		4.02	%		0.48	%	-		1.11	%
Volatility factor		34.30	%	-		41.25	%		32.67	%	-		34.84	%		29.91	%	-		34.51	%
Expected term of options in years		4.1		-		6.6			4.1		-		6.0			4.0		-		5.9
Fair value of options granted	$	7.40		-	$	7.77		$	5.97		-	$	9.27		$	6.20		-	$	8.32