v3.24.0.1
Equity-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation Equity-Based Compensation
2021 Long-Term Incentive Plan
The Shoals Technologies Group, Inc. 2021 Long-Term Incentive Plan (the “2021 Incentive Plan”) became effective on January 26, 2021. The 2021 Incentive Plan authorized 8,768,124 new shares, subject to adjustment pursuant to the 2021 Incentive Plan.
Restricted Stock Units
During the years ended December 31, 2023 and 2022, and for the period from January 27, 2021 to December 31, 2021, the Company granted 413,873, 727,001, and 1,701,306 restricted stock units (“RSUs”), respectively, to certain employees, officers and directors of the Company. The RSUs had grant date fair values
ranging from $14.45 to $28.26, $10.42 to $25.82, and $21.50 to $34.60, respectively, during the years ended December 31, 2023 and 2022 and for the period from January 27, 2021 to December 31, 2021. The RSUs generally vest ratably over either 3 or 4 years, except for some officer and employee grants for bonuses which immediately vested or vest over 1 year. There were a limited number of awards with immediate vesting.
Activity under the 2021 Incentive Plan for RSUs was as follows:
Restricted
Stock Units		Weighted Average Price
Outstanding, December 31, 2020— $— 
Granted1,701,306 $27.61 
Vested(44,724)$28.60 
Forfeited(23,738)$29.46 
Outstanding, December 31, 20211,632,844 $27.55 
Granted727,001 $13.78 
Vested(559,336)$26.05 
Forfeited(63,534)$25.56 
Outstanding, December 31, 20221,736,975 $22.34 
Granted413,873 $24.78 
Vested(887,996)$21.39 
Forfeited(91,386)$23.05 
Outstanding, December 31, 20231,171,466 $23.87 

Performance Stock Units
During the years ended December 31, 2023 and 2022, the Company granted an aggregate of 205,585 and 256,305 Performance Stock Units (“PSUs”), respectively, to certain executives. The PSUs cliff vest after 3 years upon meeting certain revenue and gross profit targets and contain certain modifiers which could increase or decrease the ultimate number of Class A common stock issued to the executives. The PSUs were valued using the market value of the Class A common stock on the grant date ranging from $26.55 to $28.26 and $10.42 to $20.58, respectively, during the years ended December 31, 2023 and 2022.
Activity under the 2021 Incentive Plan for PSUs was as follows:
Performance
Stock Units		Weighted Average Price
Outstanding, December 31, 2021— $— 
Granted256,305 $11.89 
Vested— $— 
Forfeited— $— 
Outstanding, December 31, 2022256,305 $11.89 
Granted205,585 $27.75 
Vested(67,101)$11.86 
Forfeited(101,323)$13.08 
Outstanding, December 31, 2023293,466 $22.59 
During the years ended December 31, 2023, 2022 and 2021, the Company recognized $20.9 million, $16.1 million, and $11.3 million, respectively, in equity-based compensation. As of December 31, 2023, the Company had $20.8 million of unrecognized compensation costs which is expected to be recognized over a weighted average period of 1.5 years.