ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)
The following table summarizes nonvested RSU transactions for the year ended December 31, 2025:
Weighted Average Fair Value
Number of Stock Units
Nonvested stock units at beginning of period
210,249 $
41.40 35.00 44.31 37.68 37.52
Granted
157,442 (59,841) (10,516)
Stock units vested
Forfeited
Nonvested stock units at end of period
297,334 $
The following table summarizes the value of RSUs:
Years ended December 31, 2025 2024 2023 35.00 $ 36.61 $ 45.53 2,064 $ 2,348 $ 2,427 2,647 $ 2,930 $ 2,665
Weighted average fair value of RSUs granted
$ $ $
Intrinsic value of vested RSUs Fair value of vested RSUs
As of December 31, 2025, $3,611 of unrecognized compensation costs related to RSUs is expected to be recognized over a weighted average period of approximately 1.3 years. The aggregate intrinsic value of RSUs as of December 31, 2025 was $11,406. The aggregate intrinsic value of RSUs is based on the number of nonvested stock units and the market value of the Company’s common stock as of the period end date. Stock Options – A stock option represents the option to purchase a number of shares of common stock of the Company as specified in the stock option grant agreement at the exercise price per share as determined by the closing market price of our common stock on the grant date. Stock options are exercisable in installments of 33% annually, starting one year from the grant date and expire ten years from the grant date. The vesting of stock options granted in 2025, 2024, and 2023 are subject to the achievement of the following performance goal: the Company achieves at least an adjusted return on equity equal to 150 basis points below the return on equity granted by the Pennsylvania Public Utility Commission during the Company’s Pennsylvania subsidiary’s last rate proceeding. The adjusted return on equity equals net income, excluding net income or loss from acquisitions which have not yet been incorporated into a rate application as of the last year end, divided by equity which excludes equity applicable to acquisitions which are not yet incorporated in a rate application during the award period. The fair value of each stock option is amortized into compensation expense using the graded vesting method, which results in the recognition of compensation costs over the requisite service period for each separately vesting tranche of the stock options as though the stock options were, in substance, multiple stock option grants. The following table provides compensation expense and income tax benefit for stock options:
Years ended December 31, 2025 2024 2023 1,733 $ 304 $ 650 436 $ 76 $ 162
Stock-based compensation within operations and maintenance expenses
$ $
Income tax benefit
68
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