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14 - NONVESTED STOCK AWARDS
On March 3, 2010, the Company’s Board of Directors approved the Baltic Trading Limited 2010 Equity Incentive Plan (the “Plan”). Under the Plan, the Company’s Board of Directors, the compensation committee, or another designated committee of the Board of Directors may grant a variety of stock-based incentive awards to officers, directors, and executive, managerial, administrative and professional employees of and consultants to the Company or Genco whom the compensation committee (or other committee of the Board of Directors) believes are key to the Company’s success. Awards may consist of restricted stock, restricted stock units, stock options, stock appreciation rights and other stock or cash-based awards. The aggregate number of shares of common stock available for award under the Plan is 2,000,000 shares.
Grants of restricted stock to Peter C. Georgiopoulos, Chairman of the Board, and John Wobensmith, President and Chief Financial Officer, made in connection with the Company’s IPO vest ratably on each of the first four anniversaries of March 15, 2010. Grants of restricted common stock to directors made following the Company’s IPO (which exclude the foregoing grant to Mr. Georgiopoulos) vest the earlier of the first anniversary of the grant date or the date of the next annual shareholders’ meeting, which is expected to be held in May 2012. Grants of restricted stock made to executives and the Chairman of the Board not in connection with the Company’s IPO vest ratably on each of the first four anniversaries of the determined vesting date.
The following table presents a summary of the Company’s restricted stock awards for the two years ended December 31, 2011:
|
|
|
Year Ended December 31, |
|
|
|
|
2011 |
|
2010 |
|
|
|
|
Number of
Shares |
|
Weighted
Average
Grant Date
Price |
|
Number of
Shares |
|
Weighted
Average
Grant Date
Price |
|
|
Outstanding at January 1 |
|
583,500 |
|
$ |
13.40 |
|
— |
|
$ |
— |
|
|
Granted |
|
117,500 |
|
5.11 |
|
583,500 |
|
13.40 |
|
|
Vested |
|
(155,250 |
) |
13.43 |
|
— |
|
— |
|
|
Forfeited |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31 |
|
545,750 |
|
$ |
11.60 |
|
583,500 |
|
$ |
13.40 |
|
The total fair value of shares that vested under the Plan during the year ended December 31, 2011 was $1,274,655. The total fair value is calculated as the number of shares vested during the period multiplied by the fair value on the vesting date. No shares under the Plan vested during the year ended December 31, 2010.
For the years ended December 31, 2011 and 2010, the Company recognized nonvested stock amortization expense for the Plan, which is included in general, administrative and technical management fees, as follows:
|
|
|
Year Ended December 31, |
|
|
|
|
2011 |
|
2010 |
|
|
General, administrative and technical management fees |
|
$ |
2,764,838 |
|
$ |
2,891,548 |
|
|
|
|
|
|
|
|
|
The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of December 31, 2011, unrecognized compensation cost of $2,761,863 related to nonvested stock will be recognized over a weighted average period of 2.58 years. |