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Note 14 - Stock-based Compensation
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

14.

Stock-based compensation

 

The Company has a stock option plan for certain officers and key full-time employees of the Company and its subsidiaries. Options are granted at the market price for the underlying shares on the date of grant. Each option vests over a four-year term, expires five years from the date granted and allows for the purchase of one Common Share. All Common Shares issued are new shares. As at December 31, 2023, there were 1,918,740 options available for future grants.

 

Grants under the Company’s stock option plan are equity-classified awards. Stock option activity for the year ended December 31, 2023 is as follows: 

 

          

Weighted average

     
      

Weighted

  

remaining

     
  

Number of

  

average

  

contractual life

  

Aggregate

 
  

options

  

exercise price

  

(years)

  

intrinsic value

 
                 

Shares issuable under options - Beginning of period

  2,337,573  $120.06         

Granted

  615,000   142.20         

Exercised

  (455,934)  73.73         

Forfeited

  (75,890)  144.43         

Shares issuable under options - December 31, 2023

  2,420,749  $133.65   2.5  $68,849 

Options exercisable - End of period

  1,044,891  $120.60   1.6  $43,351 

 

The Company incurred stock-based compensation expense related to these awards of $21,385 during the year ended December 31, 2023 (2022 - $18,046).

 

As at December 31, 2023, the range of option exercise prices was $83.89 to $162.25 per share.

 

The following table summarizes information about option exercises during year ended December 31, 2023:

 

  

2023

 
     

Number of options exercised

  455,934 
     

Aggregate fair value

 $66,499 

Intrinsic value

  32,883 

Amount of cash received

  33,616 

 

As at December 31, 2023, there was $21,024 of unrecognized compensation cost related to non-vested awards which is expected to be recognized over the next 4 years. During the year ended December 31, 2023, the fair value of options vested was $16,204 (2022 - $12,623).

 

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model, utilizing the following weighted average assumptions:

 

  

2023

 
     

Risk free rate

  4.0%

Expected life in years

  4.20 

Expected volatility

  33.5%

Dividend yield

  0.6%
     

Weighted average fair value per option granted

 $44.19 

 

The risk-free interest rate is based on the implied yield of a zero-coupon US Treasury bond with a term equal to the option’s expected term. The expected life in years represents the estimated period of time until exercise and is based on historical experience. The expected volatility is based on the historical prices of the Company’s shares over the previous four years.