ZBH · 8-K · 20260805PR335108
Share-Based Compensation
ZIMMER BIOMET HOLDINGS, INC. · 2026-08-05 · Importance 41 · Surprise 22 · In source text
Pretax share-based compensation expense decreased 10.7% to $90.2 million in 2025 from $101.0 million in 2024. The related tax benefit declined to $7.7 million from $8.7 million, while after-tax expense fell to $82.5 million from $92.3 million. Zimmer Biomet granted 1.832 million restricted stock units in 2025 and had $100.7 million of unrecognized RSU expense expected to be recognized over 1.8 years.
Key facts
- As of December 31, 2025 Zimmer Biomet estimates 1,944,684 outstanding RSUs will vest; unrecognized share-based payment expense was $100.7 million expected to be recognized over a weighted-average period of 1.8 years. source
- The Paragon 28 and Monogram acquisitions included $55.1 million of compensation expense related to discretionary accelerated vesting of unvested restricted stock units and stock options. source
- Fair value of RSUs that vested during years ended December 31: $71.0 million in 2025, $51.2 million in 2024, and $26.9 million in 2023. source
- No stock options were granted in 2025 and 2024; outstanding stock options at December 31, 2025 were 4,595 thousand with weighted average exercise price $125.91 and weighted average remaining contractual life 3.4 years. source
- Share-based compensation total expense, pre-tax, was $90.2 million in 2025, $101.0 million in 2024 and $99.8 million in 2023. source
- Tax benefit related to awards was $7.7 million in 2025, $8.7 million in 2024 and $16.7 million in 2023; total expense net of tax was $82.5 million in 2025, $92.3 million in 2024 and $83.1 million in 2023. source
- Intrinsic value of options exercised was $1.0 million in 2025, $11.4 million in 2024 and $23.2 million in 2023; tax benefit of options exercised was $0.2 million in 2025, $2.3 million in 2024 and $4.4 million in 2023. source
- Zimmer Biomet had two equity compensation plans in effect at December 31, 2025 and registered 59.9 million shares of common stock under these plans; 10.5 million shares were available for future grants as of December 31, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -3.9% | As of December 31, 2025 Zimmer Biomet estimates 1,944,684 outstanding RSUs will vest; unrecognized share-based payment expense was $100.7… |