Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

The Northern Trust Corporation 2017 Long-Term Incentive Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards.

Beginning with the grants made on February 21, 2017 under the Corporation’s prior equity incentive plan, restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires after satisfying applicable age and service requirements.

The Corporation granted 1,029,713 stock units awards with a total grant-date fair value of $95.9 million during the three months ended March 31, 2023, compared to 936,837 stock units awards with a total grant-date fair value of $106.0 million during the three months ended March 31, 2022. Compensation expense for the three months ended March 31, 2023 included $31.4 million attributable to restricted stock units granted to retirement-eligible employees that were expensed in their entirety on the date of grant, compared to $32.6 million in the prior-year quarter.

The Corporation granted 219,314 performance stock units with a total grant-date fair value of $20.6 million during the three months ended March 31, 2023, compared to 211,906 performance stock units with a total grant-date fair value of $24.1 million during the three months ended March 31, 2022. Compensation expense for the three months ended March 31, 2023 included $14.2 million attributable to performance stock units granted to retirement-eligible employees that were expensed in their entirety on the date of grant, compared to $16.2 million in the prior-year quarter.

Restricted stock unit award compensation expense for the three months ended March 31, 2023 and 2022 included $4.2 million and $5.7 million, respectively, attributable to restricted stock units vested in full and expensed in their entirety upon date of grant.

Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three months ended March 31, 2023 and 2022.

TABLE 68: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS


	THREE MONTHS ENDED MARCH 31,
(In Millions)	2023		2022
Restricted Stock Unit Awards	$	50.3	$	52.6
Performance Stock Units	14.1		17.4
Total Share-Based Compensation Expense	64.4		70.0
Tax Benefits Recognized	$	16.2	$	17.6