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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2011
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
15. Stock-Based Compensation

The 2004 Incentive Compensation and Stock Plan (the Plan) was approved on May 24, 2004. Any employee of our company or an affiliate or a person who is a member of our board of directors or the board of directors of an affiliate is eligible to participate in the Plan if the Compensation Committee of the Board of Directors (the Administrator), in its sole discretion, determines that such person has contributed significantly or can be expected to contribute significantly to the profits or growth of our company or its affiliates (each, a participant). Under the terms of the Plan, we may grant participants stock awards, incentive awards, or options (which may be either incentive stock options or nonqualified stock options), or stock appreciation rights (SARs), which may be granted with a related option. Stock options entitle the participant to purchase a specified number of shares of our common stock at a price that is fixed by the Administrator at the time the option is granted; provided, however, that the price cannot be less than the shares' fair market value on the date of grant. The maximum period in which an option may be exercised is fixed by the Administrator at the time the option is granted but, in the case of an incentive stock option, cannot exceed ten years.

The maximum aggregate number of shares of our common stock that may be issued under the Plan is 1,500,000. During 2011, 18,930 shares of our common stock were issued under the Plan resulting in 1,451,335 shares being available for grant at December 31, 2011. No participant may be granted or awarded in any calendar year options or SARs covering more than 200,000 shares of our common stock in the aggregate. For purposes of this limitation and the individual limitation on the grant of options, an option and corresponding SAR are treated as a single award.

Of the 18,930 shares of common stock issued during 2011 under the Plan, 702 shares were to six of our non-employee directors with an aggregate fair value of $120 thousand at the issue date of July 1, 2011. The fair value of the shares was based on the closing price of our common stock on the day prior to the date of issue. We recognized expense of $120 thousand related to the issuance of this common stock. The remaining 18,228 shares issued during 2011 under the Plan related to a stock award granted on August 15, 2011. The shares issued under this award vested immediately; however, the stock may not be sold or otherwise transferred until August 15, 2012. We recognized expense of $2.9 million related to the issuance of the shares under the stock award, based on the closing price of our common stock on the date of the stock award.

At December 31, 2010, we had 16,000 outstanding options to purchase shares of our common stock at an exercise price of $4.35 per share. These outstanding options became exercisable over a stated period of time. These previously granted outstanding options were awarded under Ethyl's 1982 Stock Option Plan, which terminated in March 2004, and pursuant to which no further options may be granted. None of these options included an associated SAR. These options were exercised during 2011.

A summary of activity during 2011 in NewMarket's stock option plan is presented below in whole shares:

 

     Whole
Shares		     Weighted
Average
Exercise
Price		      Weighted
Average
Remaining
Contractual
Term
in Years		      Aggregate
Intrinsic
Value
(in thousands)		  

Outstanding at January 1, 2011

      16,000      $ 4.35         

Exercised

      (16,000 )      4.35          $ 2,805   
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding at December 31, 2011

      0      $ 0         0       $ 0   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable at December 31, 2011

      0      $ 0         0       $ 0   
  

 

 

    

 

 

     

 

 

     

 

 

  

We have neither granted nor modified any stock option awards in 2011, 2010, or 2009. The total intrinsic value of options exercised was $3 million for 2011, $2 million for 2010, and $500 thousand for 2009.

We recognized a tax benefit of $1 million on the $4.35 options for 2011 and $700 thousand for 2010. We recognized no tax benefit for 2009. There was no unrecognized compensation cost during 2011, 2010, or 2009.