NOTE 8 — SHARE-BASED AWARDS AND CASH BASED AWARDS

The W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan (as amended from time to time, the “Plan”) was approved by the Company’s shareholders in 2010. Under the Plan, the Company may issue, subject to the approval of the Board of Directors, stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, performance units or shares, cash awards, substitute awards or any combination of the foregoing to employees and consultants.

Share-Based Awards to Employees

Restricted Stock Units (“RSUs”) –RSUs outstanding as of March 31, 2023 relate to the 2022 and 2021 grants.

A summary of activity related to RSUs during the three months ended March 31, 2023 is as follows:

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Performance Share Units (“PSUs”) – PSUs are RSU awards subject to performance criteria. PSUs outstanding as of March 31, 2023 relate to the 2022 and 2021 grants. No PSUs were granted during the three months ended March 31, 2023.

Share-Based Awards to Non-Employee Directors

The W&T Offshore, Inc. 2004 Directors Compensation Plan (as amended from time to time) (the “Director Plan”) was initially approved by the Company’s shareholders in 2004 and an amendment to the Director Plan was approved by the Company’s shareholders in 2020. Under the Director Plan, the Company may issue, subject to the approval of the Board of Directors, stock options and restricted shares. There was no activity related to the Restricted Shares granted pursuant to the Director Plan during the three months ended March 31, 2023. Restricted Shares outstanding as of March 31, 2023 relate to the 2022 grants to non-employee directors.

Share-Based Compensation Expense

Compensation costs for share-based payments are recognized over the requisite service period. A summary of compensation expense under share-based payment arrangements is as follows (in thousands):

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Cash-Based Incentive Compensation

In addition to share-based compensation, short-term cash-based incentive awards were granted under the Plan to all eligible employees during 2022. The short-term cash-based incentive awards granted in 2022 were paid in March 2023. No cash-based incentive awards were granted during the three months ended March 31, 2023.

During June 2021, the Company granted long-term, cash-based awards (the “2021 Cash Awards”) subject to the same performance-based criteria as the 2021 PSU grants. The 2021 Cash Awards are eligible to vest based on continued employment through October 1, 2023.

Share-Based Awards and Cash-Based Awards Compensation Expense

A summary of compensation expense related to share-based awards and cash-based awards is as follows (in thousands):

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