Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):


	Three Months Ended March 31,
	2022		2021
Restricted share units	$	87	$	66
Performance share awards	27		61
Employee share purchase plans	4		4
Total share-based compensation expense	$	119	$	131

Restricted Share Units

RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of the Company’s class A ordinary shares at the date of grant. With certain limited exceptions, any break in continuous employment will cause the forfeiture of all non-vested awards. Compensation expense associated with RSUs is recognized on a straight-line basis over the requisite service period. Dividend equivalents are paid on certain RSUs, based on the initial grant amount.

The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):


	Three Months Ended March 31,
	2022			2021
	Shares	Fair Value (1)		Shares	Fair Value (1)
Non-vested at beginning of period	3,075	$	203	3,309	$	163
Granted	428	$	307	372	$	226
Vested	(396)	$	189	(452)	$	160
Forfeited	(53)	$	207	(70)	$	166
Non-vested at end of period	3,055	$	219	3,159	$	171

(1)Represents per share weighted average fair value of award at date of grant.

Unamortized deferred compensation expense amounted to $478 million as of March 31, 2022, with a remaining weighted average amortization period of approximately 2.0 years.

Performance Share Awards

The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share related performance over a three-year period. The actual issuance of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. The grant date fair value of PSAs is based upon the market price of the Company’s class A ordinary shares at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the programs on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits in the Condensed Consolidated Statements of Income, if necessary. Dividend equivalents are not paid on PSAs.

The following table summarizes the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the three months ended March 31, 2022 and the years ended December 31, 2021 and 2020, respectively (shares in thousands and dollars in millions, except fair value per share):


	March 31, 2022		December 31, 2021		December 31, 2020
Target PSAs granted during period	292		382		500
Weighted average fair value per share at date of grant	$	313	$	225	$	163
Number of shares that would be issued based on current performance levels	292		730		962
Unamortized expense, based on current performance levels	$	91	$	106	$	38