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Share-based payments

12 Months Ended

Dec. 31, 2020

25.	Share-based payments

The Company has established equity compensation plans under which it administers restricted stock, stock options, and certain other equity-based awards to attract, retain, and motivate executive officers, certain key employees, and

non-employee

directors to compensate them for their contributions to the growth and profitability of the Company. Shares delivered under this award program may be sourced from treasury stock, or authorized unissued shares.

The Company’s equity compensation plans are accounted for under IFRS 2

Share-Based Payment

(“IFRS 2”). IFRS 2 requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award or at fair value of the award at each reporting date, depending on the type of award granted. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the award, which is usually the vesting period.

The total compensation cost recognized for

non-vested

stock and options awards amounts to $5.3 million, $6.1 million, and $7.1 million in 2020, 2019, and 2018, respectively, and was recorded as a component of “Wages, salaries, benefits and other employees’ expenses” within operating expenses.

Non-vested

Stock

The Company approved a

non-vested

stock bonus award for certain executive officers of the Company.

A summary of the terms and conditions, properly approved by the Compensation Committee of our Board of Directors, relating to the grants of the

non-vested

stock award under the equity compensation plan is as follows:


Grant date	Number of instruments		Vesting conditions	Contractual life
April, 2015		4,915	15% first three anniversaries 25% fourth 30% fifth anniversary	5 years
June, 2015		5,839	15% first three anniversaries 25% fourth 30% fifth anniversary	5 years
February, 2016		147,000	15% first three anniversaries 25% fourth 30% fifth anniversary	5 years
February, 2016		63,000	Fifth anniversary	5 years
May, 2016		7,899	15% first three anniversaries 25% fourth 30% fifth anniversary	5 years
February, 2017		22,012	One-third every anniversary	3 years
February, 2017		11,980	One-third every anniversary	3 years
February, 2017		2,237	Third anniversary	3 years
February, 2018		21,556	7% first month 31% first three anniversaries	3 years
February, 2018		14,379	33% first three anniversaries	3 years
February, 2018		1,316	15% first three anniversaries 25% fourth 30% fifth anniversary	5 years
July, 2018		6,104	Third anniversary	3 years
February, 2019		15,951	1% first month 33% first three anniversaries	3 years
June, 2019		9,256	33% first three anniversaries	3 years
June, 2019		977	33% first three anniversaries	3 years
August, 2019		1,039	33% first three anniversaries	3 years
December, 2019		1,724	100% first anniversary	1 year
February, 2020		24,650	1% first month 33% first three anniversaries	3 years
December, 2020		3,551	100% first anniversary	1 year

Non-vested

stock awards were measured at their fair value on the grant date. For the 2020 grants, the fair value of these

non-vested

stock awards amounts to $93.99 per share (2019: $96.46).

A summary of the

non-vested

stock award activity under the plan as of December 31, 2020, 2019 and 2018 with changes during these years is as follows (in number of shares):


	2020			2019			2018
Non-vested as of January 1		211,205			271,904			304,153
Granted		28,201			28,947			43,355
Vested		(83,409	)		(80,170	)		(72,045	)
Forfeited		(2,076	)		(9,476	)		(3,559	)

Non-vested as of December 31		153,921			211,205			271,904

The Company uses the accelerated attribution method to recognize the compensation cost for awards with graded vesting periods. The Company estimates that the remaining compensation cost, not yet recognized for the

non-vested

stock awards, amounts to $1.9 million (2019: $4.0 million), with a weighted average remaining contractual life of 1.6 years (2019: 2.1 years). Additionally, the Company estimates that the 2021 compensation cost related to these plans amounts to $1.4 million.

The Company plans to make additional equity-based awards under the plan from time to time, including additional

non-vested

stock and stock option awards. The Company anticipates that future employee

non-vested

stock and stock option awards granted pursuant to the plan will generally vest over a three to five-year period and the stock options will carry a

ten-year

term.