Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We have a principal share-based compensation plan (the “2020 Long-Term Incentive Plan”), which allows us to grant new equity awards to certain officers, non-employee directors and other key employees of HollyFrontier. The restricted stock unit awards generally vest over a period of one to three years. Upon vesting, restrictions on the restricted stock units lapse at which time they convert to common shares or cash. The performance share units generally vest over a period of three years and are payable in stock or cash upon meeting certain financial and performance criteria. The number of shares ultimately issued or cash paid for the performance share units can range from zero to 200% of target award amounts. The holders of unvested restricted stock units and performance share units have the right to receive dividends.

The compensation cost for these plans was $9.2 million and $6.9 million for the three months ended September 30, 2021 and 2020, respectively, and $32.0 million and $19.8 million, for the nine months ended September 30, 2021 and 2020, respectively.

Additionally, HEP maintains a share-based compensation plan for Holly Logistic Services, L.L.C.’s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s share-based compensation plan was $0.6 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively, and $1.9 million and $1.5 million, for the nine months ended September 30, 2021 and 2020, respectively.

In July 2021, we adopted a stock compensation deferral plan which allows non-employee directors to defer settlement of vested stock granted under our share-based compensation plan. This plan was effective October 1, 2021.

A summary of restricted stock unit and performance share unit activity during the nine months ended September 30, 2021 is presented below:

	Restricted Stock Units		Performance Share Units
Outstanding at January 1, 2021	2,057,045		635,204
Granted (1)	9,983		—
Vested	(95,476)		(5,894)
Forfeited	(153,453)		(29,204)
Outstanding at September 30, 2021	1,818,099		600,106
(1) Weighted average grant date fair value per unit	$	34.98	$	—