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Share-Based Compensation And Other Related Information | 12 Months Ended
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Dec. 31, 2022
Disclosure of share-based payment arrangements [Abstract] |
Share-Based Compensation And Other Related Information | 21. SHARE CAPITAL AND EMPLOYEE COMPENSATION PLANS
a.Stock options and compensation shares For the year ended December 31, 2022, the total share-based compensation expense relating to stock options and compensation shares was $3.9 million (2021 - $5.1 million) and is presented as a component of general and administrative expense. •Stock options During the year ended December 31, 2022, the Company granted 191,649 (2021 – 53,115) stock options. During the year ended December 31, 2022, the Company issued 79,542 (2021 – 65,780) common shares in connection with the exercise of stock options. •Compensation shares During the year ended December 31, 2022, the Company issued 14,745 (2021 - 9,646) common shares to the Board of Directors in lieu of Directors' fees of $0.3 million (2021 - $0.3 million). The following table summarizes changes in stock options for the years ended December 31,:
| Stock Options Outstanding
| Shares | Weighted Average Exercise Price CAD$
As at December 31, 2020 | 317,417 |  | $ | 18.78 |
Granted | 53,115 |  | 30.70 |
Exercised | (65,780) |  | 11.77 |
Expired | (2,162) |  | 41.62 |
Forfeited | (23,587) |  | 32.27 |
As at December 31, 2021 | 279,003 |  | $ | 21.38 |
Granted | 191,649 |  | 22.95 |
Exercised | (79,542) |  | 15.12 |
Expired | (4,324) |  | 41.62 |
Forfeited | (9,819) |  | 31.32 |
As at December 31, 2022 | 376,967 |  | $ | 23.01 |
The following table summarizes information about the Company's stock options outstanding at December 31, 2022:
| Options Outstanding | Options Exercisable
Range of Exercise Prices CAD$ | Number Outstanding as at December 31, 2022 | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price CAD$ | Number Outstanding as at December 31, 2022 | Weighted Average Exercise Price CAD$
$17.53 - $23.03 | 290,657 |  | 5.6 |  | $ | 21.17 |  | 99,008 |  | $ | 17.72 |
$23.04 - $28.54 | 35,409 |  | 2.7 |  | $ | 25.35 |  | 35,409 |  | $ | 25.35 |
$28.55 - $34.04 | 43,993 |  | 5.9 |  | $ | 30.70 |  | 14,668 |  | $ | 30.70 |
$34.05 - $39.48 | 6,908 |  | 4.9 |  | $ | 39.48 |  | 6,908 |  | $ | 39.48 |
| 376,967 |  | 5.3 |  | $ | 23.01 |  | 155,993 |  | $ | 21.64 |
The following assumptions were used in the Black-Scholes option pricing model in determining the fair value of options granted during the years ended December 31,:
| 2022 | 2021
Expected life (years) | 4.5 |  | 4.0 |
Expected volatility | 44.3 | % | 44.0 | %
Expected dividend yield | 2.7 | % | 2.4 | %
Risk-free interest rate | 3.4 | % | 1.9 | %
Weighted average exercise price (CAD$) | $ | 22.95 |  | $ | 30.70 |
Weighted average fair value (CAD$) | $ | 7.69 |  | $ | 9.39 |
b.PSUs PSUs are notional share units that mirror the market value of the Company’s common shares. Each vested PSU entitles the participant to a cash payment equal to the value of an underlying share, less applicable taxes, at the end of the term, plus the cash equivalent of any dividends distributed by the Company during the three-year performance period. PSU grants will vest on the date that is three years from the date of grant subject to certain exceptions. Performance results at the end of the performance period relative to predetermined performance criteria and the application of the corresponding performance multiplier determine how many PSUs vest for each participant. The Board of Directors approved the issuance of 150,469 PSUs for 2022 with a share price of CAD $21.16 (2021 - 79,417 PSUs approved at a share price of CAD $32.72). The Company recorded a $nil and $1.9 million expense, respectively, in general and administrative expense for PSUs for the years ended December 31, 2022 and 2021. The following table summarizes changes in PSUs for the years ended December 31, 2022 and 2021:
PSU | Number Outstanding | Fair Value
As at December 31, 2020 | 255,559 |  | $ | 8,870 |
Granted | 79,417 |  | 2,049 |
Paid out | (117,328) |  | (4,539) |
Change in value | — |  | (901) |
As at December 31, 2021 | 217,648 |  | $ | 5,479 |
Granted | 150,469 |  | 2,456 |
Paid out | (80,159) |  | (828) |
Change in value | — |  | (2,319) |
As at December 31, 2022 | 287,958 |  | $ | 4,788 |
c.RSUs Under the Company’s RSU plan, selected employees are granted RSUs where each RSU has a value equivalent to one Pan American common share. At the time of settlement, the Board of Directors has the discretion to settle the RSUs with cash or common shares. The RSUs vest in three installments, the first 33.3% vest on the first anniversary date of the grant, the second 33.3% vest on the second anniversary date of the grant, and a further 33.3% vest on the third anniversary date of the grant. Additionally, RSU value is adjusted to reflect dividends paid on common shares over the vesting period. The Company recorded a $1.5 million and $1.8 million expense, respectively, in general and administrative expense for RSUs for the years ended December 31, 2022 and 2021. The following table summarizes changes in RSUs for the years ended December 31, 2022 and 2021:
RSU | Number Outstanding | Fair Value
As at December 31, 2020 | 396,572 |  | $ | 13,730 |
Granted | 240,366 |  | 5,818 |
Paid out | (197,320) |  | (4,829) |
Forfeited | (13,218) |  | (329) |
Change in value | — |  | (3,699) |
As at December 31, 2021 | 426,400 |  | $ | 10,691 |
Granted | 341,060 |  | 5,567 |
Paid out | (198,344) |  | (3,402) |
Forfeited | (17,324) |  | (283) |
Change in value | — |  | (3,453) |
As at December 31, 2022 | 551,792 |  | $ | 9,120 |
d.Authorized share capital The Company is authorized to issue 400,000,000 common shares without par value. e.Dividends The Company declared the following dividends for the years ended December 31, 2022 and 2021:
Declaration date | Record date | Dividend per common share
February 22, 2023 (1) | March 6, 2023 | $ | 0.10 |
November 9, 2022 | November 21, 2022 | $ | 0.10 |
August 10, 2022 | August 22, 2022 | $ | 0.11 |
May 11, 2022 | May 24, 2022 | $ | 0.12 |
February 23, 2022 | March 7, 2022 | $ | 0.12 |
November 9, 2021 | November 22, 2021 | $ | 0.10 |
August 10, 2021 | August 23, 2021 | $ | 0.10 |
May 12, 2021 | May 25, 2021 | $ | 0.07 |
February 17, 2021 | March 1, 2021 | $ | 0.07 |
(1)These dividends were declared subsequent to the year end and have not been recognized as distributions to owners during the period presented. f.CVRs As part of the acquisition of Tahoe Resources Inc ("Tahoe"), on February 22, 2019, the Company issued 313,887,490 Contingent Value Rights ("CVRs"), with a term of 10 years, which were convertible into 15,600,208 common shares upon the first commercial shipment of concentrate following the restart of operations at the Escobal mine. As of December 31, 2022 and 2021, there were 313,883,990 CVRs outstanding which are convertible into 15,600,034 common shares

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