v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
19.
Stock-Based Compensation
Total
stock-based
compensation
expense
was
$
1.1
million,
$
2.1
million
and
$
2.9
million
for
the
years
ended
December 31,
2025,
2024
and
2023,
respectively,
and
was
included
as a
component
of
selling,
general,
and
administrative expenses in the Company’s Consolidated Statements of Operations and Comprehensive Income.
The stock-based compensation expense includes
compensation expense recognized in full
at the grant date for
employees that meet certain retirement eligibility criteria
per the 2018 Plan (as defined below).
As of
December 31,
2025, the
Company had
$
2.8
million of
total unrecognized
compensation costs
related to
nonvested stock-based compensation
awards granted under
its equity incentive
plans. This cost
is expected to
be
recognized
over
2.25
years,
with
a
weighted-average
period
of
1.4
years,
as
stock-based
compensation
expense. This expected cost does not include the impact of any
future stock-based compensation awards.
a) 2018 Equity Incentive Plan
In
connection
with
the
completion
of
the
Company’s
initial
public
offering
of
common
stock,
the
Company
implemented
the
Coronado
Global
Resources Inc.
2018
Equity
Incentive
Plan,
or
the
2018
Plan,
which
is
designed
to
align
compensation
for
certain
key
employees
with
the
performance
of
the
Company.
Since
its
approval, there have been no updates to the 2018 Plan
or issuances
of a new plan.
The 2018
Plan provides
for the
grant of
awards
including stock
options, or
Options;
stock appreciation
rights;
restricted stock units, or RSUs,
and restricted stock, which are valued
in whole or in part
with reference to shares
of the
Company’s CDIs
or common
stock, as
well as
performance-based awards,
including performance
stock
units, or PSUs, denominated in CDIs
or shares of common stock.
Each award entitles the holder
to receive one
CDI, with
ten
CDIs representing one share of common stock,
subject to applicable vesting conditions.
The Company
measures the cost
of all stock-based
compensation, including
stock options,
at fair value
on the
grant date
and recognizes
such costs
within “Selling,
general and
administrative expense”
in the
Consolidated
Statements of
Operations and Comprehensive
Income. The
Company recognizes compensation
expense related
to Options, PSUs and RSUs
that cliff vest using
the straight-line method during
the requisite service period.
For
stock-based
awards
where
vesting
is
dependent
upon
achieving
certain
operating
performance
goals,
the
Company
estimates
the
likelihood
of
achieving
the
performance
goals
during
the
performance
period.
The
Company accounts
for forfeitures as and when they occur.
All awards
require
the
grantee
to be
employed
by the
Company
at the
vesting
date, except
for grantees
who
meet certain retirement criteria under the 2018 Plan.
The following awards were outstanding under the 2018
Plan as of December 31, 2025:
Grant year
Vesting date
Performance period
PSUs
2025
31/03/2028
01/01/2025 - 31/12/2027
11,082,360
2024
31/03/2027
01/01/2024 - 31/12/2026
6,374,930
2023
31/03/2026
01/01/2023 - 31/12/2025
3,596,599
2022
31/03/2026
01/01/2022 - 31/12/2024
3,125,614
The vesting of PSUs is subject
to the achievement of specified
goals over the performance period.
These goals
are
relative
total
shareholder
return,
or
TSR,
and
scorecard
performance
metrics,
or
the
Scorecard.
TSR
is
determined
based
on
the
Company’s
percentile
ranking
of
TSR
over
the
performance
period
relative
to
a
predefined peer group of similar companies.
The weighting of the TSR and performance metrics applicable
to the PSUs granted is summarized below:
Grant year
Scorecard
Relative TSR
Safety
TSR
Cashflow
2025
20.0%
30.0%
-
50.0%
2024 and 2023
33.3%
33.3%
0.0%
33.3%
2022
33.3%
22.2%
22.2%
22.2%
Awards subject to
TSR vest based
on service
and market conditions.
The fair
value of
relative TSR was
estimated
on the grant date using a Monte Carlo simulation model.
Awards subject
to the
Scorecard metrics
vest based
on service
and performance
conditions. The
fair value
of
Scorecard awards
was estimated
using the
grant date
fair value
of the
Company’s
common stock
adjusted for
dividends foregone during the performance period.
Stock Option Awards
The Company’s
outstanding stock
option awards were
granted on the
date of the
IPO with an
exercise price of
$
2.84
per CDI (A$
4.00
per CDI) which was equal to the Company’s
IPO price.
The Stock Option activity is summarized below:
Stock Option Activity
2025
2024
2023
Outstanding at the beginning of the year
—
—
181,687
Vested
—
—
(181,687)
Outstanding at the end of the year
—
—
—
Exercisable at the end of the year
181,687
181,687
181,687
The weighted average grant
date fair value of all Option
awards granted was $
0.27
per CDI. The exercise price
of the
option awards granted
under the 2018
Plan is
$
2.38
per CDI (A$
3.56
per CDI). The
181,687
vested Options
will remain exercisable until they expire on October 23, 2028.
Performance Stock Unit Awards
Activity of the Company’s
PSUs that are ultimately
payable in the Company’s
CDIs or the equivalent
number of
shares of common stock granted under the 2018 Plan
is summarized below:
Performance Stock Units Activity
2025
2024
2023
Unvested at the beginning of the year
17,787,134
17,992,453
14,858,921
Granted
12,317,475
5,498,291
4,872,122
Forfeited
(3,258,851)
(4,314,219)
(1,451,677)
Vested and settled
(2,666,255)
(1,389,391)
(286,913)
Unvested and outstanding at the end of the year
24,179,503
17,787,134
17,992,453
2025
2024
2023
Weighted-average grant date fair value (per CDI)
$
0.42
$
0.63
$
0.58
Weighted-average remaining term (in years)
1.43
1.36
1.82
The weighted-average grant date fair value of all PSUs
granted in 2025 was $
0.11
(A$
0.17
).
The assumptions used to determine the fair value of
the PSUs on each grant date were as follows:
2025 Grant
2024 Grant
2023 Grant
2022 Grant
Time to maturity (in years) (i)
2.96
2.58
2.98
3.99
Dividend yield (ii)
6.7%
1.2%
7.8%
16.3%
Expected volatility (iii)
45.0%
50.0%
60.0%
60.0%
Risk-free interest rate (iv)
3.33%
3.54%
2.98%
2.66%
___________________
(i)
Time to
maturity represents
the period over
which the PSUs
will vest. All
awards cliff vest
at the end
of
the requisite service period.
(ii)
Dividend yield is the expected average yield of dividends
expected over the vesting period.
(iii)
The volatility was estimated
using comparable public company
volatility and the Company’s own
volatility
for similar terms.
(iv)
The risk-free interest rate was based on an interpolated Australian Government Bond Rate at
the time of
the grant for periods corresponding with the expected
term of the PSUs.
The above
inputs were
consistent to
determine the
fair value
of the
market and
performance conditions
of the
PSUs awards.
Restricted Stock Units
RSUs issued to certain employees are only subject
to service conditions and vest at various intervals
during the
service period.
The fair
value of
the award
was determined
using the
market price
of the
Company’s
common
stock at the date of grant, and compensation expense
is recorded over the requisite service period.
Activity of the Company’s
RSUs that are ultimately
payable in the Company’s
CDIs or the equivalent
number of
shares of common stock granted under the 2018 Plan
is summarized below:
Restricted Stock Units Activity
2025
2024
2023
Unvested at the beginning of the year
584,541
734,893
1,144,034
Granted
—
584,541
144,506
Forfeited
(31,654)
(18,525)
(46,593)
Vested and settled
(552,887)
(716,368)
(507,054)
Unvested and outstanding at the end of the year
—
584,541
734,893
2025
2024
2023
Weighted-average grant date fair value (per CDI)
$
—
$
0.87
$
1.26
Weighted-average remaining term (in years)
—
0.58
0.23