v3.25.2
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense
Stock-based compensation expense presented as “General and administrative” on the Consolidated Statement of Operations for the periods was:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Stock-based compensation expense$16 $$27 $16 
Income tax benefit(4)(2)(7)(4)
After-tax stock-based compensation expense$12 $6 $20 $12 
Schedule of Nonvested Performance Stock Units The following table summarizes the Company’s non-vested PSUs and changes during the year:
Units (a)
Weighted-Average
Grant Date
Fair Value per Unit
Non-vested as of December 31, 2024956,347 $54.23 
Granted101,825 463.10 
Non-vested as of June 30, 2025 (b)
1,058,172 $93.58 
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(a)Represents the target number of PSUs.
(b)Subject to the PSU award agreements, the actual amount of PSUs earned by participants at vesting can range from 0% to 200% of the target number of PSUs based on the Company’s stock price performance. In addition, certain of the PSUs are eligible to earn an additional amount of Talen shares based on the incremental Company stock price performance in excess of the PSU targets. Based on the share price of the Company’s common stock as of June 30, 2025, the aggregate non-vested PSUs were 2,337,445.
Schedule of Significant Inputs and Assumptions of Fair Value The fair value of the PSUs was determined using a Monte Carlo valuation methodology based on the fair value of the underlying stock price at the grant date and the significant inputs and assumptions summarized below:
Six Months Ended June 30, 2025
Volatility (a)
40 %
Expected term (in years)2
Risk-free rate (b)
3.99 %
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(a)     Derived from an option pricing method based on the average asset volatility of peer companies and the Company’s leverage ratio.
(b)     Based on the U.S. constant maturity treasury rate with a term matching the expected time to the end of the performance measurement period.
Schedule of Nonvested Restricted Stock Units The following table summarizes the Company’s non-vested RSUs and changes during the year:
UnitsWeighted-Average
Grant Date
Fair Value per Unit
Non-vested as of December 31, 2024549,405 $55.07 
Granted52,514 207.95 
Vested(236,553)(48.10)
Non-vested as of June 30, 2025365,366 $81.56