Under the 2014 Omnibus Incentive Plan (“2014 Plan”), as amended, which is the Company’s only equity compensation plan, we may grant stock options and other equity-based awards, including RSUs and PSUs, to certain employees. At December 31, 2022, an aggregate of 549,318 shares were authorized for future grant. Awards that expire or are forfeited without delivery of shares generally become available for future issuance under the plan. As stock options are exercised, and RSUs and PSUs vest, we issue new shares of Ryerson common stock.

Compensation expense for stock options, RSUs, and PSUs is recognized ratably over the service period of the award and reflects forfeitures as they occur. Compensation expense for RSUs and PSUs is based on the market price of the shares underlying the awards on the grant date, and further for PSUs, reflects the estimated level of performance condition attainment.

Compensation expense and total recognized tax benefit related to stock options, RSUs, and PSUs are as follows:


	Year Ended December 31,
	2022			2021			2020
	(In millions)
Stock-based compensation expense, pre-tax	$	9.1		$	5.5		$	1.9
Tax benefit recognized in earnings		(2.4	)		(1.3	)		—

On March 31, 2021, the Company granted 125,000 market condition options to certain employees under the 2014 Plan. The options are subject to a graded vesting schedule over a four-year period provided two vesting conditions are both satisfied on each applicable vesting date, with a fifth year catch up provision that allows for vesting if any of the four individual vesting tranche conditions are not met. Once vested, the employee can exercise the option in exchange for one share of the Company’s common stock. Options expire 10 years from the grant date, or generally within 90 days of employee termination. Options, whether vested or unvested, do not participate in dividends.

The fair value of options is estimated based on a Monte Carlo simulation. The Monte Carlo simulation considers variables such as volatility, dividend yield, risk-free rate, and the expected exercise multiple in computing the value of the options. No stock options were granted in 2022. The fair value of the stock options granted in 2021 is between $0.92 and $10.50 per share, differing at each vesting tranche.

Stock option activity under the plan is as follows:


	Option Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022		125.0		$	16.50
Exercised		(1.3	)		16.50
Outstanding at December 31, 2022		123.7		$	16.50		8.25	$	1.7
Vested and Exercisable at December 31, 2022		11.2		$	16.50		8.25	$	0.2

The total fair value of stock options vested during 2022 was $0.1 million. Proceeds from the stock options exercised under the plan in 2022 were $21,450. The total intrinsic value of all options exercised under the plan in 2022 was $16,891. No stock options were exercised in 2021. The total intrinsic value of all options outstanding under the plan in 2021 was $1.2 million.

In 2022, 2021, and 2020, we granted 199,583, 168,700, and 158,525 RSUs, and 276,850, 251,150, and 225,675 PSUs, respectively, to certain employees. Each RSU and PSU consists of the right to receive one share of our common stock. RSUs also have dividend equivalent rights equal to the accrued cash dividends where the record date for such dividends is after the grant date but before the shares vest. All rights under RSUs and PSUs are generally forfeited upon employee termination. The Company’s RSU awards vest in three separate and equal tranches over a three-year period. PSUs cliff vest on the third anniversary of the grant date, subject to achieving performance conditions. Each tranche vests annually on March 31, following the date of grant. RSUs and PSUs are measured based on the fair value of the underlying stock on the grant date. The statutory tax on the value of common stock shares issued to employees upon vesting is either paid through the sale of registered shares of our common stock or funded with cash.

The fair value of the 2022, 2021, and 2020 RSUs and PSUs granted was $35.02, $17.04, and $5.32 per share, respectively, determined by the closing price of our common stock on the grant date.

A summary of the status of our unvested RSUs and PSUs as of December 31, 2022 and changes during the year then ended is as follows:



	Shares (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Aggregate Fair Value (in millions)
Restricted Stock Units
Unvested at January 1, 2022		317		$	12.00
Granted (1)		200			34.57
Vested		(155	)		10.56
Forfeited		(4	)		19.55
Unvested at December 31, 2022		358		$	25.12	$	10.9

Performance Stock Units
Unvested at January 1, 2022		684		$	10.62
Granted		277			35.02
Vested		(215	)		8.56
Forfeited		(6	)		15.33
Unvested at December 31, 2022		740		$	20.31	$	22.4

(1) The RSU shares granted line includes dividend shares declared after the grant date that will vest with their respective RSU tranche.

The total fair value of RSUs and PSUs vested during 2022, 2021, and 2020 was $13.0 million, $6.1 million, and $1.8 million, respectively.

As of December 31, 2022, unrecognized compensation cost related to unvested RSUs, PSUs, and stock options was $4.2 million, $5.5 million, and $0.6 million, respectively. That cost is expected to be recognized over a weighted-average period of 1.5 years for RSUs, 1.9 years for PSUs, and 2.0 years for stock options.

In 2022, 2021, and 2020, we made payments of $2.7 million, zero, and zero, respectively, to tax authorities on our employees’ behalf for shares withheld related to net share settlements. Withholding related to this remittance is reflected in the stock-based compensation expense, net caption of our consolidated statements of stockholders' equity.