COMMON SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

The company recognized total expenses of $140.1 million, $188.5 million and $207.5 million related to equity-settled common share-based payment transactions in 2021, 2020 and 2019, respectively. The income tax benefit recognized in the Consolidated Statements of Income for common share-based compensation arrangements was $30.0 million for 2021 (2020: $27.8 million; 2019: $38.1 million).

Common share awards are broadly classified into two categories: time-vested and performance-vested. Common share awards are measured at fair value at the date of grant and are expensed, based on the company's estimate of common shares that will eventually vest, on a straight-line or accelerated basis over the vesting period. The company's RSU grant-date fair value is measured by Invesco’s common stock price.

Time-vested awards vest ratably over a defined period of continued employee service. Performance-vested awards vest upon (i) the company's attainment of certain pre-established performance criteria, and (ii) a defined period of continued employee service. Time-vested and performance-vested equity awards are granted in the form of restricted stock awards (RSAs) or restricted stock units (RSUs). With respect to the performance-vested awards granted in February 2019, 2020 and 2021, vesting is tied to the achievement of specific levels of adjusted operating margin and relative total shareholder return with vesting ranging from 0% to 150%.

With respect to time-vested awards, dividends accrue directly to the employee holder of RSAs, and cash payments in lieu of dividends are made to employee holders of certain RSUs. With respect to performance-vested awards, cash payments in lieu of dividends are deferred and are paid at the same rate as on the underlying shares if and to the extent the award vests.

The 2016 Global Equity Incentive Plan (2016 GEIP), which was originally approved by the company's common shareholders in May 2016 and most recently amended and restated in May 2021, authorizes the issuance of up to 16.0 million shares. In May 2010, the board approved the 2010 Global Equity Incentive Plan ST (GEIP ST). The GEIP ST authorizes the issuance of up to 8.5 million shares. With respect to the GEIP ST, awards are only granted as employment inducement awards in connection with a strategic transaction and, as a result, do not require shareholder approval under the rules of the New York Stock Exchange or otherwise.

Movements on employee common share awards during the years ended December 31, are detailed below:


	2021			2020		2019
Millions of common shares, except fair values	Time-Vested	Performance-Vested	Weighted Average Grant Date Fair Value ($)	Time-Vested	Performance-Vested	Time- Vested	Performance-Vested
Unvested at the beginning of year	18.1	1.6	19.11	18.7	1.1	12.5	0.9
Granted during the year (1)	3.4	0.6	22.61	8.8	0.9	15.5	0.6
Forfeited during the year	(0.4)	—	18.90	(0.5)	—	(0.5)	—
Vested and distributed during the year	(7.6)	(0.3)	21.40	(8.9)	(0.4)	(8.8)	(0.4)
Unvested at the end of the year	13.5	1.9	18.88	18.1	1.6	18.7	1.1

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(1)With respect to the time-vested awards granted in 2019, includes 6.2 million restricted shares as employment inducement awards in connection with completed acquisitions.

The total fair value of common shares that vested during 2021 was $187.9 million (2020: $124.6 million; 2019: $177.1 million). The weighted average grant date fair value of the U.S. dollar share awards that were granted during 2021 was $22.61 (2020: $14.09; 2019: $19.66).

At December 31, 2021, there was $164.7 million of total unrecognized compensation cost related to non-vested common share awards; that cost is expected to be recognized over a weighted average period of 2.12 years.