Equity-Based Compensation |
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| 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 nine months ended September 30, 2024, the Company granted 1,447,831 restricted stock units (“RSUs") to certain employees, officers and directors of the Company. The RSUs granted during 2024 have grant date fair values ranging from $5.12 to $15.39 per unit and generally vest ratably over 3 years, except retention grants granted in 2024, which vest two-thirds in 2026 and one-third in 2027, and director grants, which vest over 1 year. Activity under the 2021 Incentive Plan for RSUs was as follows:
Performance Stock Units During the nine months ended September 30, 2024, the Company granted an aggregate of 324,099 Performance Stock Units ("PSUs") to certain executives. The PSUs granted during 2024 cliff vest after 3 years upon meeting certain revenue and adjusted diluted EPS 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 $13.01 to $15.39. Activity under the 2021 Incentive Plan for PSUs was as follows:
The Company recognized equity-based compensation of $1.3 million and $5.1 million, respectively, for the three months ended September 30, 2024 and 2023, and $10.4 million and $17.1 million, respectively, for the nine months ended September 30, 2024 and 2023. As of September 30, 2024, the Company had $15.7 million of unrecognized compensation costs which is expected to be recognized over a weighted average period of 1.9 years.
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