Stock-based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-based CompensationThe 2014 Incentive Compensation and Stock Plan (the Plan) was approved on April 24, 2014. 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 or can be expected to contribute 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, stock units, 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 10 years. No participant may be granted or awarded, in any calendar year, shares, options, SARs, or stock units 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.

The maximum aggregate number of shares of our common stock that may be issued under the Plan is 1,000,000. At December 31, 2020, 954,028 shares were available for grant. During 2020, we granted 1,120 shares to five of our non-employee directors, which vested immediately.

A summary of activity during 2020 related to NewMarket’s restricted stock and restricted stock units (stock awards) is presented below in whole shares:


	Number of Shares	Weighted Average Grant-Date Fair Value
Unvested stock awards at January 1, 2020	21,111	$	427.14
Granted in 2020	6,779	414.33
Vested in 2020	4,708	428.54
Forfeited in 2020	2,268	428.07
Unvested stock awards at December 31, 2020	20,914	422.57

The weighted average grant-date fair value was $440.42 for stock awards granted in 2019 and $415.98 for stock awards granted in 2018. The fair value of shares vested was $2 million in 2020, $1 million in 2019, and $3 million in 2018. We recognized compensation expense of $2 million in 2020, $2 million in 2019, and $2 million in 2018 related to stock awards. At December 31, 2020, total unrecognized compensation expense related to stock awards was $5 million, which is expected to be recognized over a period of 3.1 years.