The Company’s share-based compensation plan under which it may grant future awards, the Donnelley Financial Solutions, Inc. Amended and Restated 2016 Performance Incentive Plan (as amended, the “2016 PIP”), was approved by the Board of Directors (the “Board”) and the Company’s shareholders on May 18, 2017 and provides incentives to key employees of the Company. Awards under the 2016 PIP may include cash or stock bonuses, stock options, stock appreciation rights, restricted stock, performance share units (“PSUs”), performance cash awards or restricted stock units (“RSUs”). In addition, non-employee members of the Board may receive awards under the 2016 PIP. On May 30, 2019, the Company’s shareholders voted to approve 3.4 million additional shares of common stock for issuance under the 2016 PIP. At March 31, 2021, there were 0.9 million remaining shares of common stock authorized and available for grant under the 2016 PIP.

The Company recognizes compensation expense for the share-based awards based on estimated grant date fair values as well as certain assumptions, as further disclosed in Note 12, Share-Based Compensation, of the Annual Report.

Total compensation expense related to all share-based compensation plans was $3.1 million and $2.3 million for the three months ended March 31, 2021 and 2020, respectively. The income tax benefit related to share-based compensation expense was $3.8 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, $32.6 million of total unrecognized expense related to share-based compensation awards is expected to be recognized over a weighted-average period of 2.5 years.

There were no stock options granted during the three months ended March 31, 2021. A summary of activity and weighted average exercise prices related to the stock options were as follows:

	Shares Under Option (thousands)			Weighted Average Exercise Price
Outstanding at December 31, 2020		715		$	18.91
Exercised		(5	)		22.33
Cancelled/forfeited/expired		(25	)		31.35
Outstanding at March 31, 2021		685		$	18.43
Vested and expected to vest at March 31, 2021		677		$	18.46
Vested at March 31, 2021		527		$	19.21

As of March 31, 2021, $0.7 million of unrecognized compensation expense related to stock options is expected to be recognized over a weighted average period of 1.5 years.

RSU awards as of March 31, 2021 and December 31, 2020, and changes during the three months ended March 31, 2021, were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2020		1,376		$	10.53
Granted		446			28.61
Vested		(467	)		11.54
Forfeited		(15	)		15.25
Nonvested at March 31, 2021		1,340		$	16.14

As of March 31, 2021, $18.8 million of unrecognized compensation expense related to RSUs is expected to be recognized over a weighted-average period of 2.5 years.

PSU awards as of March 31, 2021 and December 31, 2020, and changes during the three months ended March 31, 2021, were as follows:

	Shares (thousands)			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2020		872		$	12.13
Granted		336			27.86
Vested		(244	)		15.61
Forfeited		(11	)		8.98
Nonvested at March 31, 2021		953		$	16.82

During the three months ended March 31, 2021, 335,830 PSUs were granted to certain executive officers and senior management, 315,400 of which related to the 2021 performance grant and 20,430 of which related to additional shares issued during the three months ended March 31, 2021 due to the achievement of certain targets for the year ended December 31, 2020. The total potential payout for awards granted during the three months ended March 31, 2021 is payable upon the achievement of certain established performance targets and ranges from zero to 631,000 shares.

The 2020 and 2021 PSU awards consist of four independent performance periods, including three annual performance periods and one three-year cumulative performance period. Compensation expense related to the first annual performance period for the 2021 PSUs is recognized at 153% based on the estimated attainment as of March 31, 2021, or approximately 118,000 shares. Compensation expense for the remaining performance periods for the 2021 PSUs is recognized based on an estimated 100% attainment of the targeted performance metrics, or approximately 238,000 shares. Compensation expense related to the first annual performance period for the 2020 PSUs is recognized at 138% based on the attainment for the year ended December 31, 2020, or approximately 111,000 shares. Compensation expense related to the second annual performance period for the 2020 PSUs is recognized at 147% based on the estimated attainment as of March 31, 2021, or approximately 118,000 shares. Compensation expense for the remaining performance periods for the 2020 PSU awards is recognized based on an estimated 100% attainment of the target performance metrics, or approximately 180,000 shares, for the remaining performance periods. Compensation expense for the 2019 PSUs is recognized over one cumulative three-year performance period at an estimated 115% attainment of the targeted performance metrics, or approximately 341,000 shares.

As of March 31, 2021, $13.1 million of unrecognized compensation expense related to PSUs is expected to be recognized over a weighted average period of 2.5 years.