The Zurn Elkay Water Solutions Corporation Performance Incentive Plan (the "Plan") is utilized to provide performance incentives to the Company's officers, employees, directors and certain others by permitting grants of equity awards (for common stock), as well as performance-based cash awards, to such persons to encourage them to maximize the Company's performance and create value for the Company's stockholders. For the three months ended September 30, 2026 and September 30, 2025, the Company recognized $10.6 million and $9.6 million of stock-based compensation expense, respectively. For the nine months ended September 30, 2026 and September 30, 2025, the Company recognized $31.5 million and $29.1 million of stock-based compensation expense, respectively.

During the nine months ended September 30, 2026, the Company granted the following stock options, restricted stock units, performance stock units, and common stock to directors, executive officers, and certain other employees:


Award Type	Number of Awards	Weighted Average Grant-Date Fair Value
Stock options	53,514	$	19.02
Restricted stock units	181,091	$	50.22
Performance stock units	336,641	$	51.11
Common stock	146,025	$	46.68

In May 2024, the Company’s stockholders approved the adoption of the Zurn Elkay Water Solutions Corporation Employee Stock Purchase Plan (the “ESPP"). The number of shares of Company common stock available for purchase under the ESPP is 2,000,000 shares, subject to adjustment in the event of a change in capitalization.

During the three and nine months ended September 30, 2026, the Company issued 18,687 and 56,315 shares of common stock, respectively. During the three and nine months ended September 30, 2025, the Company issued 16,176 and 61,874 shares of common stock, respectively. As of September 30, 2026, 1,828,306 shares remained available for future issuance. During the three and nine months ended September 30, 2026, the Company recognized $0.2 million and $0.5 million of stock-based compensation expense related to the ESPP, respectively. During the three and nine months ended September 30, 2025, the Company recognized $0.1 million and $0.4 million of stock-based compensation expense related to the ESPP, respectively.

See Note 13, Stock-Based Compensation, to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, for further information regarding stock-based compensation.