Stock Compensation Plans (Notes)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Charter’s stock incentive plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plan. The stock incentive plan allows for the issuance of up to 16 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock).

Restricted stock, restricted stock units, stock options as well as equity awards with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of stock options is estimated on the date of grant using the Black-Scholes option-pricing model and the fair value of equity awards with market conditions is estimated on the date of grant using Monte Carlo simulations. The grant date weighted average assumptions used during the years ended December 31, 2023, 2022 and 2021 were: risk-free interest rate of 3.7%, 1.7% and 0.7%, respectively; expected lives of 4.8 years, 5.7 years and 5.9 years, respectively; and expected volatility of 31%, 28% and 27%, respectively. The Company’s volatility assumptions represent management’s best estimate and were based on a review of historical and implied volatility. Expected lives were estimated using historical exercise data. The valuations assume no dividends are paid. The Company has elected an accounting policy to assume zero forfeitures for stock awards grants and account for forfeitures when they occur.

Stock options and restricted stock units generally cliff vest three years from the date of grant. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant.

As of December 31, 2023, total unrecognized compensation remaining to be recognized in future periods totaled $390 million for stock options, $1 million for restricted stock and $440 million for restricted stock units and the weighted average period over which they are expected to be recognized is 3 years for stock options, 4 months for restricted stock and 2 years for restricted stock units. The Company recorded $692 million, $470 million and $430 million of stock compensation expense for the years ended December 31, 2023, 2022 and 2021, respectively, which is included in operating costs and expenses.

A summary of the activity for Charter’s stock options for the years ended December 31, 2023, 2022 and 2021, is as follows (shares in thousands, except per share data):


	Year Ended December 31,
	2023							2022							2021
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, beginning of period	9,180			$	396.89			8,433			$	362.26			8,842			$	312.95
Granted	4,278			$	384.50			1,469			$	577.64			1,295			$	629.57
Exercised	(563)			$	228.69	$	102	(552)			$	295.51	$	133	(1,568)			$	295.46	$	606
Canceled	(237)			$	486.77			(170)			$	570.44			(136)			$	476.90
Outstanding, end of period	12,658			$	398.51	$	638	9,180			$	396.89			8,433			$	362.26

Weighted average remaining contractual life	5		years					6		years					6		years
Options exercisable, end of period	6,051			$	325.80	$	618	5,320			$	266.78			4,102			$	237.45
Options expected to vest, end of period	6,607			$	465.11	$	20
Weighted average fair value of options granted	$	126.13						$	172.24						$	171.21

A summary of the activity for Charter’s restricted stock for the years ended December 31, 2023, 2022 and 2021, is as follows (shares in thousands, except per share data):


	Year Ended December 31,
	2023			2022			2021
	Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price
Outstanding, beginning of period	7	$	494.72	5	$	654.33	6	$	504.53
Granted	11	$	331.45	7	$	494.72	5	$	654.33
Vested	(7)	$	494.72	(5)	$	654.33	(6)	$	504.53
Canceled	—	$	—	—	$	—	—	$	—
Outstanding, end of period	11	$	331.45	7	$	494.72	5	$	654.33

A summary of the activity for Charter’s restricted stock units for the years ended December 31, 2023, 2022 and 2021, is as follows (shares in thousands, except per share data):


	Year Ended December 31,
	2023			2022			2021
	Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price
Outstanding, beginning of period	1,266	$	545.00	1,294	$	449.03	1,651	$	337.82
Granted	1,561	$	359.07	638	$	522.45	367	$	629.47
Vested	(358)	$	510.22	(592)	$	307.67	(665)	$	269.88
Canceled	(98)	$	440.14	(74)	$	569.11	(59)	$	467.26
Outstanding, end of period	2,371	$	432.11	1,266	$	545.00	1,294	$	449.03