During the three months ended March 31, 2023, the Company granted share-based compensation to eligible participants under the SunCoke Energy, Inc. Omnibus Long-Term Incentive Plan (the "Omnibus Plan"). All awards vest immediately upon a qualifying termination of employment, as defined by the Omnibus Plan, following a change in control.

During the three months ended March 31, 2023, the Company issued 294,462 restricted stock units (“RSUs”) to certain employees, to be settled in shares of the Company’s common stock. The weighted average grant date fair value was $9.24 per unit, and was based on the closing price of our common stock on the date of grant. RSUs granted to employees vest and become payable in three annual installments beginning one year from the date of grant. The service period for certain retiree eligible participants is accelerated. RSUs granted to the Company's Board of Directors vest upon grant, but are paid out upon termination of board service.

Performance share units (“PSUs”) were granted to certain employees to be settled in shares of the Company's common stock during the three months ended March 31, 2023, for which the service period will end on December 31, 2025, and will vest and become payable during the first quarter of 2026. The service period for certain retiree eligible participants is accelerated. The Company granted the following PSUs:

(1)Performance measures for the PSU awards are split 50/50 between the Company's three-year cumulative Adjusted EBITDA (as defined in Note 12) and the Company's three-year average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses.

(2)The number of PSUs ultimately awarded will be determined by the above performance measures versus targets and the Company's three-year total shareholder return (“TSR”) as compared to the TSR of the companies making up the Nasdaq Iron & Steel Index (“TSR Modifier”). The TSR Modifier can impact the payout between 80 percent and 120 percent of the Company's final performance measure results.

Each PSU award may vest between 25 percent and 200 percent of the original units granted. The fair value of the PSUs granted during the three months ended March 31, 2023 is based on the closing price of our common stock on the date of grant as well as a Monte Carlo simulation for the valuation of the TSR Modifier.

During the three months ended March 31, 2023, the Company issued 216,547 restricted stock units to certain employees to be settled in cash (“Cash RSUs”), which vest and become payable in three annual installments beginning one year from the grant date. The weighted average grant date fair value of the Cash RSUs granted during the three months ended March 31, 2023 was $9.24 per unit, based on the closing price of our common stock on the date of grant.

The Cash RSUs liability is adjusted based on the closing price of our common stock at the end of each quarterly period and was $1.0 million at March 31, 2023 and $2.4 million at December 31, 2022.

awards vest immediately upon a qualifying termination of employment, as defined by the Omnibus Plan, following a change in control. The cash incentive award liability is included in accrued liabilities and other deferred credits and liabilities on the Consolidated Balance Sheets.

The Company issued awards with an aggregate grant date fair value of approximately $2.2 million during the three months ended March 31, 2023, for which the service period will end on December 31, 2025 and will vest and become payable during the first quarter of 2026. The service period for certain retiree eligible participants is accelerated. The performance measures for these awards are split 50/50 between the Company's three-year cumulative Adjusted EBITDA and the Company's three-year average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses.

The cash incentive award liability at March 31, 2023 was adjusted based on the Company's three-year cumulative Adjusted EBITDA and adjusted average pre-tax return on capital for the Company's coke and logistics businesses and unallocated corporate expenses. The cash incentive award liability was $6.7 million at March 31, 2023 and $8.7 million at December 31, 2022.

Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over:


	Three Months Ended March 31,
	2023		2022				March 31, 2023
	Compensation Expense(1)				Unrecognized Compensation Cost	Weighted Average Remaining Recognition Period
	(Dollars in millions)					(Years)
Equity Awards:

RSUs	$	0.3	$	0.3			$	2.9	1.3
PSUs	1.3		0.7				1.1		2.1
Total equity awards	$	1.6	$	1.0
Liability Awards:
Cash RSUs	$	0.7	$	0.7			$	2.8	1.9
Cash incentive award	1.3		1.0				2.8		0.8
Total liability awards	$	2.0	$	1.7

(1)Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Income.