Share-based compensation (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of share-based compensation expense and related income tax benefit

Share-based compensation expense and the related income tax benefit were as follows:

	Three months ended March 31
(in millions)	2021		2020
HEI consolidated
Share-based compensation expense 1	$	2.6	$	1.7
Income tax benefit	0.4		0.3
Hawaiian Electric consolidated
Share-based compensation expense 1	1.1		0.8
Income tax benefit	0.3		0.1

1    For the three months ended March 31, 2021 and 2020, the Company has not capitalized any share-based compensation.

Schedule of common stock granted to a nonemployee director under the 2011 Director Plan

HEI granted HEI common stock to nonemployee directors under the 2011 Director Plan as follows:

	Three months ended March 31
(dollars in thousands)	2021		2020
Shares granted	—		468
Fair value	$	—	$	23
Income tax benefit	—		6

Schedule of restricted stock units

Information about HEI’s grants of restricted stock units was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	193,939		$	40.89	207,641		$	35.36
Granted	127,598		33.98		77,679		48.11
Vested	(78,988)		38.51		(77,719)		34.19
Forfeited	(6,358)		42.20		(4,160)		35.81
Outstanding, end of period	236,191		$	37.91	203,441		$	40.67
Total weighted-average grant-date fair value of shares granted (in millions)	$	4.3			$	3.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders

Information about HEI’s LTIP grants linked to TSR was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	89,222		$	42.10	96,402		$	39.62
Granted	44,210		41.12		24,630		48.62
Vested (issued or unissued and cancelled)	(32,355)		38.20		(29,409)		39.51
Forfeited	(1,024)		45.89		(1,007)		41.72
Outstanding, end of period	100,053		$	42.89	90,616		$	42.08
Total weighted-average grant-date fair value of shares granted (in millions)	$	1.8			$	1.2

(1)    Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

Schedule of Long-Term Incentive Plan assumptions

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted:

	2021		2020
Risk-free interest rate	0.19	%	1.39	%
Expected life in years	3		3
Expected volatility	29.9	%	13.1	%
Range of expected volatility for Peer Group	25.6% to 102.9%		13.6% to 95.4%
Grant date fair value (per share)	$41.12		$48.62

Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions

Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	Three months ended March 31
	2021				2020
	Shares		(1)		Shares		(1)
Outstanding, beginning of period	220,715		$	41.03	403,768		$	35.15
Granted	176,844		33.98		98,522		48.10
Vested	(43,155)		34.12		(135,804)		33.48
Increase above target (cancelled)	(14,604)		43.90		(26,111)		34.13
Forfeited	(4,098)		44.36		(4,031)		39.67
Outstanding, end of period	335,702		$	38.04	336,344		$	39.64
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	6.0			$	4.7

(1)    Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.