Share-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

We granted 1.6 million restricted stock units (“RSUs”) during the 2020 first half to certain officers and key employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We also granted 0.1 million performance-based RSUs (“PSUs”) in the 2020 first half to certain executive officers, which are earned, subject to continued employment and the satisfaction of certain performance conditions based on achievement of pre-established targets for gross room openings, active Marriott Bonvoy™ loyalty member growth, and adjusted operating income growth over, or at the end of, a three-year performance period. RSUs, including PSUs, granted in the 2020 first half had a weighted average grant-date fair value of $111 per unit.

We recorded share-based compensation expense for RSUs and PSUs of $46 million in the 2020 second quarter and $48 million in the 2019 second quarter, $85 million in the 2020 first half, and $86 million in the 2019 first half. Deferred compensation costs for unvested awards for RSUs and PSUs totaled $268 million at June 30, 2020 and $176 million at December 31, 2019.