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Share-Based Compensation Plans

12 Months Ended

Dec. 31, 2024

Share-Based Compensation Plans

Share-Based Compensation Plans

11. Share-Based Compensation Plans

Incentive Plans

The Company makes equity incentive grants pursuant to our 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3,000 shares may be granted. As of December 31, 2024, 962 shares were available for grants under the 2017 Plan.

Restricted Stock

During fiscal years 2024, 2023, and 2022, the Company granted 117, 136, and 189 shares of common stock, respectively, with a service vesting condition to certain of its executives, officers, and employees. The restricted shares have voting rights and vest evenly at 20% over each of the next five years. Upon vesting, shares will be held in lieu of taxes equivalent to the statutory tax withholding required to be paid when the restricted stock vests. During the years ended December 31, 2024, 2023 and 2022, the Company withheld 55, 56, and 52 shares of common stock in lieu of taxes at a cost of $7,446, $6,331, and $4,625, on the restricted stock vesting dates, respectively. In April 2024, a new non-employee director was appointed to the Board of Directors and was granted an initial award of shares pursuant to the Company’s compensation program. The initial award of shares that were granted to such newly appointed director have voting rights and vest on the one-year anniversary of the date of grant. During 2024, 2023 and 2022, following the annual stockholders meeting, the Company granted 3, 4 and 4 shares of common stock to the non-employee members of the Board of Directors. The restricted shares granted to these directors have voting rights and vest on the earlier of (a) the one year anniversary of the date of grant or (b) immediately prior to the following year’s annual stockholders’ meeting.

On June 30, 2024, a named executive officer resigned for “good reason” which, under the terms of his employment agreement, resulted in an acceleration of the vesting of the next tranche of five outstanding restricted stock awards that would have otherwise vested on March 1, 2025. As a result, the incremental share-based compensation expense from the modification on the five restricted stock awards for the accelerated vesting date was $558 and is included in the general and administrative expenses in the Company’s consolidated income statement. In July 2024, 5 shares vested and 2 shares were withheld in lieu of taxes at a cost of $324 on the accelerated vesting date.

A summary of the activity related to restricted stock granted under the Company’s Incentive Plan is as follows:


				Weighted Average
		Total		Grant Date
		Shares		Fair Value per Share
Outstanding as of December 31, 2021		427		$	86.24
Granted		193		$	83.10
Vested		(134)		$	85.07
Forfeited, canceled or expired		(10)		$	85.49
Outstanding as of December 31, 2022		476		$	85.32
Granted		140		$	112.60
Vested		(147)		$	86.94
Forfeited, canceled or expired		(19)		$	87.87
Outstanding as of December 31, 2023		450		$	93.16
Granted		120		$	130.80
Vested		(151)		$	91.84
Forfeited, canceled or expired		(16)		$	100.12
Outstanding as of December 31, 2024		403		$	104.54

As of December 31, 2024, there was approximately $30,345 of total unrecognized share-based compensation cost related to unvested restricted stock awards. These costs are expected to be recognized over a weighted average period of 2.03 years.

Share-based Compensation

Share-based Compensation Expense Assumptions – Restricted Stock Awards

The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for Company employees and the Board of Directors. The Company recognizes forfeitures as they occur. The restricted shares have voting rights.

The table below outlines share-based compensation expense for the fiscal years ended December 31, 2024, 2023 and 2022 related to restricted stock and stock options granted:


		2024			2023			2022
Technology and academic services		$	2,594		$	2,365		$	2,424
Counseling services and support			7,200			6,862			6,287
Marketing and communication			226			190			154
General and administrative			4,205			3,787			3,777
Share-based compensation expense included in operating expenses			14,225			13,204			12,642
Tax effect of share-based compensation			(3,556)			(3,301)			(3,161)
Share-based compensation expense, net of tax		$	10,669		$	9,903		$	9,481

401(k) Plan

The Company has established a 401(k) Defined Contribution Benefit Plan (the “Plan”). The Plan provides eligible employees, upon date of hire, with an opportunity to make tax-deferred contributions into a long-term investment and savings program. All employees over the age of 21 are eligible to participate in the Plan. The Plan allows eligible employees to contribute to the Plan subject to restrictions under the Internal Revenue Code of 1986 (the “Code”), and the Plan allows the Company to make discretionary matching contributions. The Company plans to make a matching contribution to the Plan of approximately $3,092 for the year ended December 31, 2024. The Company made discretionary matching contributions to the Plan of $2,951 and $2,744 for the years ended December 31, 2023 and 2022, respectively.