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Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2020

Note 12. Stock-Based Compensation Plans

We grant stock-based compensation to our employees and directors. At December 31, 2020, an aggregate of 2,182,604 shares were authorized for future grant under our various stock-based compensation plans, including stock options, restricted stock units and stock awards. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. As stock options are exercised and restricted stock units vest, we issue new shares of Reliance common stock.

On May 20, 2020, our stockholders approved an amendment to the Reliance Steel & Aluminum Co. Amended and Restated 2015 Incentive Award Plan to, in part, increase the number of shares available for issuance under the plan by 1.5 million. In addition, our stockholders approved extending the term of the Reliance Steel & Aluminum Co. Directors Equity Plan for ten years until December 31, 2030.

Stock Options

Stock option activity under all the plans is as follows:


				Weighted Average
				Remaining	Aggregate
	Option	Weighted Average		Contractual Term	Intrinsic Value
Stock Options	Shares	Exercise Price		(in years)	(in millions)
Outstanding at January 1, 2018	75,275	$	52.30
Exercised	(48,275)		57.91
Expired or forfeited	(1,000)		55.73
Outstanding at December 31, 2018	26,000		41.76
Exercised	(20,000)		40.80
Outstanding at December 31, 2019	6,000		44.99
Exercised	(6,000)		44.99
Outstanding at December 31, 2020	—	$	—	—	$	—
Exercisable at December 31, 2020	—	$	—	—	$	—

Proceeds from stock options exercised under all stock option plans in 2020, 2019 and 2018 were $0.3 million, $0.8 million and $2.8 million, respectively. The total intrinsic values of all options exercised in 2020, 2019 and 2018 were $0.4 million, $1.0 million, $1.6 million, respectively. As of December 31, 2020 no stock options were issued and outstanding.

Restricted Stock Units

In 2020, 2019 and 2018, we granted 540,547, 488,345 and 474,715, respectively, restricted stock units (“RSUs”) to key employees pursuant to the Amended and Restated Stock Option and Restricted Stock Plan. Each RSU consists of the right to receive one share of our common stock and dividend equivalent rights, subject to forfeiture, equal to the accrued cash or stock dividends where the record date for such dividends is after the grant date but before the shares vest. Additionally, each 2020, 2019 and 2018 RSU granted has a service-based condition and cliff vests at December 1, 2022, December 1, 2021 and December 1, 2020, respectively, if the recipient is an employee of the Company on those dates. In addition to a service-based condition, 210,403, 194,155 and 178,970 of the RSUs granted in 2020, 2019 and 2018, respectively, also have performance goals and vest only upon the satisfaction of the service-based condition and certain performance targets for the three-year periods ending December 31, 2022, December 31, 2021 and December 31, 2020, respectively. The fair value of the 2020, 2019 and 2018 RSUs granted was $82.81 per share, $88.05 per share and $84.26 per share, respectively, determined based on the closing price of our common stock on the grant date.

In 2020, 2019 and 2018, 12,807, 11,640 and 13,880 stock awards, respectively, were granted to the non-employee members of the Board of Directors pursuant to the Directors Equity Plan. The fair value of the stock awards granted in 2020, 2019 and 2018, was $91.30 per share, $89.34 per share and $93.65 per share, respectively, determined based on the closing price of our common stock on the grant date. The awards include dividend rights and vest immediately upon grant.

In 2020, 2019 and 2018, we made payments of $23.1 million, $16.2 million and $12.3 million, respectively, to tax authorities on our employees’ behalf for shares withheld related to net share settlements. These payments are reflected in the Stock-based compensation, net caption of the consolidated statements of equity.

A summary of the status of our unvested service-based and performance-based RSUs as of December 31, 2020 and changes during the year then ended is as follows:


		Weighted
		Average
		Grant Date			Aggregate
		Fair Value			Fair Value
Unvested RSUs	Shares	Per RSU			(in millions)
Unvested at January 1, 2020	859,005	$	86.40
Granted	540,547		82.81
Vested	(369,990)		84.31
Canceled or forfeited	(33,842)		85.21
Unvested at December 31, 2020	995,720	$	85.27	$	119.2

The total fair value of RSUs vested during 2020, 2019 and 2018 was $54.0 million, $56.5 million and $34.6 million, respectively.

Unrecognized Compensation Cost and Tax Benefits

As of December 31, 2020, there was $48.3 million of total unrecognized compensation cost related to unvested stock-based compensation awards granted under all stock-based compensation plans. That cost is expected to be recognized over a weighted average period of 1.1 years.

The tax benefit realized from our stock-based compensation plans in 2020, 2019 and 2018 was $6.1 million, $5.5 million and $4.9 million, respectively.