SLB has three types of stock-based compensation programs: (i) a restricted stock unit and performance share unit program (collectively referred to as “restricted stock”), (ii) a discounted stock purchase plan (“DSPP”), and (iii) stock options.

SLB grants performance share units to certain key employees. The number of shares earned is determined at the end of each performance period based on SLB’s achievement of certain predefined targets as described in the underlying performance share unit agreement. In the event SLB exceeds the predefined target, shares for up to a maximum of 250% of the target award may be awarded. In the event SLB falls below the predefined target, a reduced number of shares may be awarded. If SLB falls below the threshold award performance level, no shares will be awarded. As of December 31, 2023, 3.2 million performance share units were outstanding assuming the achievement of 100% of target.

All other restricted stock awards generally vest at the end of three years or vest ratably in equal tranches over a three-year period.

Restricted stock awards do not pay dividends or have voting rights prior to vesting. Accordingly, the fair value of a restricted stock award is generally the quoted market price of SLB’s stock on the date of grant less the present value of the expected dividends not received prior to vesting.

The following table summarizes information related to restricted stock activity:


	(Shares stated in millions)

	2023					2022					2021
				Weighted-					Weighted-					Weighted-
				Average					Average					Average
	Restricted			Grant Date		Restricted			Grant Date		Restricted			Grant Date
	Stock			Fair Value		Stock			Fair Value		Stock			Fair Value
Unvested at beginning of year		18		$	30.24		22		$	29.03		19		$	35.24
Granted		5		$	56.24		7		$	36.16		8		$	25.16
Adjustments for performance achieved		2		$	32.47		2		$	35.55		-		$	-
Vested		(11	)	$	29.82		(13	)	$	32.42		(5	)	$	48.44
Unvested at year-end		14		$	39.88		18		$	30.24		22		$	29.03

Under the terms of the DSPP, employees can choose to have a portion of their earnings withheld, subject to certain restrictions, to purchase SLB common stock. Until July 1, 2022, the purchase price of the stock was 92.5% of the lower of the stock price at the beginning or end of the plan period at six-month intervals. Effective July 1, 2022, the purchase price of the stock was changed to 85% of the lower of the stock price at the beginning or end of the plan period at six-month intervals.

The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-Scholes model with the following assumptions and resulting weighted-average fair value per share:


	2023			2022			2021
Dividend yield		1.7	%		1.8	%		2.0	%
Expected volatility		50	%		47	%		67	%
Risk-free interest rate		5.13	%		1.32	%		0.07	%
Weighted-average fair value per share	$	14.93		$	8.05		$	6.72

Key employees may be granted stock options under SLB stock option plans. The exercise price equals the average of the high and low sales prices of SLB stock on the date of grant. The maximum term is 10 years, and the options generally vest in increments over five years.

The following table summarizes stock option activity:


	(Shares stated in millions)

	2023					2022					2021
				Weighted-					Weighted-					Weighted-
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
Outstanding at beginning of year		35		$	70.31		42		$	68.95		48		$	70.37
Exercised		(2	)	$	40.02		(2	)	$	40.04		-		$	-
Forfeited / Expired		(5	)	$	73.18		(5	)	$	71.45		(6	)	$	80.46
Outstanding at year-end		28		$	72.33		35		$	70.31		42		$	68.95

The following table summarizes information related to options outstanding and options exercisable as of December 31, 2023:


	(Shares stated in millions)

	Options Outstanding			Options Exercisable
		Weighted-
		Average	Weighted-		Weighted-
	Options	Remaining Life	Average	Options	Average
Exercise prices range	Outstanding	(in years)	Exercise Price	Exercisable	Exercise Price
$38.75 - $41.47	7	5.6	$39.76	4	$40.08
$47.55 - $79.85	7	2.3	$71.46	6	$71.49
$80.53 - $88.77	8	2.3	$84.44	8	$84.44
$91.28 - $114.83	6	0.8	$96.31	6	$96.31
	28	2.9	$72.33	24	$77.21

The weighted-average remaining contractual life of stock options exercisable as of December 31, 2023 was 2.4 years.

The aggregate intrinsic value of stock options outstanding and stock options exercisable as of December 31, 2023 was $90 million and $44 million, respectively.

The following summarizes stock-based compensation expense recognized in income:


(Stated in millions)

	2023		2022		2021
Restricted stock	$	225	$	255	$	254
DSPP		56		41		34
Stock options		12		17		36
	$	293	$	313	$	324

At December 31, 2023, there was $278 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements, of which $164 million is expected to be recognized in 2024, $89 million in 2025, $21 million in 2026, and $4 million in 2027.

As of December 31, 2023, approximately 24 million shares of SLB common stock were available for future grants under SLB’s stock-based compensation programs.