Incentive Plans Including Share-Based Compensation — Xcel Energy has two incentive plans which include share-based payment elements. Plans and authorized equity shares for awards:

Restricted Stock — The Executive Annual Incentive Award Plan and Omnibus Incentive Plan allow certain employees to elect to receive shares of common or restricted stock. Restricted stock is treated as an equity award and vests and settles in equal annual installments over a three-year period. Restricted stock has a fair value equal to the market trading price of Xcel Energy stock at the grant date.



(Shares in Thousands)	Shares		Weighted Average Grant Date Fair Value
Nonvested restricted stock at Jan. 1, 2019	36		$	44.29
Granted	13		53.46
Forfeited	—		—
Vested	(19	)	41.60
Dividend equivalents	1		57.09
Nonvested restricted stock at Dec. 31, 2019	31		50.15

Other Equity Awards — Xcel Energy‘s Board of Directors has granted equity awards under the Omnibus Incentive Plan, which includes various vesting conditions and performance goals. At the end of the restricted period, such grants will be awarded if vesting conditions and/or performance goals are met.

Certain employees are granted equity awards with a portion subject only to service conditions, and the other portion subject to performance conditions. A total of 0.3 million time-based equity shares subject only to service conditions were granted annually in 2019, 2018 and 2017, respectively.

The performance conditions for a portion of the awards granted from 2017 to 2019 are based on relative TSR and environmental goals. Equity awards with performance conditions will be settled or forfeited after three years, with payouts ranging from zero to 200 percent depending on achievement.



(Units in Thousands)	2019		2018		2017
Granted units	483		500		503
Weighted average grant date fair value	$	49.67	$	47.60	$	41.02



(Units in Thousands)	Units		Weighted Average Grant Date Fair Value
Nonvested Units at Jan. 1, 2019	939		$	44.30
Granted	483		49.67
Forfeited	(116	)	50.19
Vested	(464	)	41.09
Dividend equivalents	38		45.22
Nonvested Units at Dec. 31, 2019	880		48.20

Stock Equivalent Units — Non-employee members of Xcel Energy‘s Board of Directors may elect to receive their annual equity grant as stock equivalent units in lieu of common stock. Each unit’s value is equal to one share of common stock. The annual equity grant is vested as of the date of each member’s election to the Board of Directors; there is no further service or other condition. Directors may also elect to receive their cash fees as stock equivalent units in lieu of cash. Stock equivalent units are payable as a distribution of common stock upon a director’s termination of service.



(Units in Thousands)	2019		2018		2017
Granted units	29		36		51
Weighted average grant date fair value	$	58.44	$	45.44	$	46.05



(Units in Thousands)	Units		Weighted Average Grant Date Fair Value
Stock equivalent units at Jan. 1, 2019	688		$	30.93
Granted	29		58.44
Units distributed	(11	)	32.56
Dividend equivalents	19		57.28
Stock equivalent units at Dec. 31, 2019	725		32.72

TSR Liability Awards — Xcel Energy Inc.’s Board of Directors has granted TSR liability awards under the Omnibus Incentive Plan. This plan allows Xcel Energy to attach various performance goals to the awards granted. The liability awards have been historically dependent on relative TSR measured over a three-year period. Xcel Energy Inc.’s TSR is compared to a peer group of 20 other utility members. Potential payouts of the awards range from zero to 200%.



(In Thousands)	2019		2018		2017
Awards settled	466		482		454
Settlement amount (cash, common stock and deferred amounts)	$	24,930	$	21,534	$	19,083

Share-Based Compensation Expense — Other than for restricted stock, vesting of employee equity awards is typically predicated on the achievement of a TSR or environmental measures target. Additionally, approximately 0.3 million of equity award units were granted annually in 2017 - 2019, with vesting subject only to service conditions of three years.

Generally, these instruments are considered to be equity awards as the award settlement determination (shares or cash) is made by Xcel Energy, not the participants. In addition, these awards have not been previously settled in cash and Xcel Energy plans to continue electing share settlement.

Grant date fair value of equity awards is expensed over the service period. TSR liability awards have been historically settled partially in cash, and do not qualify as equity awards, but rather are accounted for as liabilities. As liability awards, the fair value on which ratable expense is based, as employees vest in their rights to those awards, is remeasured each period based on the current stock price and performance achievement, and final expense is based on the market value of the shares on the date the award is settled.



(Millions of Dollars)	2019		2018		2017
Compensation cost for share-based awards ^(a)	$	58	$	45	$	57
Tax benefit recognized in income	15		12		22

There was approximately $40 million in 2019 and $38 million in 2018 of total unrecognized compensation cost related to nonvested share-based compensation awards. Xcel Energy expects to recognize the unrecognized amount over a weighted average period of 1.6 years.