17. Stock-Based Compensation

Restricted Stock and RSUs.

Restricted stock and restricted stock units (“RSUs”) activity for the three months ended March 31, 2022 is summarized below.

In January 2022, the Company granted 498,633 RSUs or shares of restricted stock to employees as part of 2021 annual incentive compensation that vest ratably over three years from the date of grant and 197,817 RSUs or shares of restricted stock to employees that cliff vest 100% on January 31, 2025. The Company values restricted stock and RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The total fair market value of RSUs/restricted stock granted to employees during the three months ended March 31, 2022 was $595 million.

At March 31, 2022, the intrinsic value of outstanding RSUs was $1.6 billion, reflecting a closing stock price of $764.17.

At March 31, 2022, total unrecognized stock-based compensation expense related to unvested RSUs was $906 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.6 years.

Performance-Based RSUs.

Performance-based RSU activity for the three months ended March 31, 2022 is summarized below.

In January 2022, the Company granted 143,846 performance-based RSUs to certain employees that cliff vest 100% on January 31, 2025. These awards are amortized over a service period of three years. The number of shares distributed at vesting could be higher or lower than the original grant based on the level of attainment of predetermined Company performance measures. In January 2022, the Company granted 111,991 additional RSUs to certain employees based on the attainment of Company performance measures during the performance period.

The Company initially values performance-based RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The total grant-date fair market value of performance-based RSUs granted to employees during the three months ended March 31, 2022 was $164 million.

At March 31, 2022, the intrinsic value of outstanding performance-based RSUs was $412 million, reflecting a closing stock price of $764.17.

At March 31, 2022, total unrecognized stock-based compensation expense related to unvested performance-based awards was $240 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.7 years.

See Note 18, Stock-Based Compensation, in the 2021 Form 10-K for more information on performance-based RSUs.

Performance-based Stock Options.

Stock options outstanding at both March 31, 2022 and December 31, 2021 were 1,817,923 with a weighted-average exercise price of $513.50.

Vesting of the performance-based stock options is contingent upon the achievement of obtaining 125% of BlackRock's grant-date stock price within five years from the grant date and the attainment of Company performance measures during the four-year performance period. If both hurdles are achieved, the award will vest in three equal installments at the end of 2022, 2023 and 2024, respectively. Both hurdles were achieved as of March 31, 2022. Vested options are exercisable for up to nine years following the grant date. The awards are generally forfeited if the employee leaves the Company before the respective vesting date. The expense for each tranche is amortized over the respective requisite service period.

At March 31, 2022, total unrecognized stock-based compensation expense related to unvested performance-based stock options was $39 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.7 years. At March 31, 2022, the weighted-average remaining life of the awards is approximately 4.7 years.

See Note 18, Stock-Based Compensation, in the 2021 Form 10-K for more information on performance-based stock options.