NOTE 13: STOCK-RELATED BENEFIT PLANS

New York Community Bank Employee Stock Ownership Plan

All full-time employees who have attained 21 years of age and have completed twelve consecutive months of credited service are eligible to participate in the Employee Stock Ownership Plan (“ESOP”), with benefits vesting on a six-year basis, starting with 20% in the second year of employment and continuing in 20% increments in each successive year. Benefits are payable upon death, retirement, disability, or separation from service, and may be paid in stock. However, in the event of a change in control, as defined in the ESOP, any unvested portion of benefits shall vest immediately.

In 2018, 2017, and 2016, the Company allocated 529,531, 695,675, and 617,031 shares, respectively, to participants in the ESOP. For the years ended December 31, 2018, 2017, and 2016, the Company recorded ESOP-related compensation expense of $5.0 million, $9.2 million, and $9.8 million, respectively.

Supplemental Executive Retirement Plan

In 1993, the Bank established a Supplemental Executive Retirement Plan (“SERP”), which provided additional unfunded, non-qualified benefits to certain participants in the ESOP in the form of Company common stock. The SERP was frozen in 1999. Trust-held assets, consisting entirely of Company common stock, amounted to 1,929,189 and 1,819,985 shares, respectively, at December 31, 2018 and 2017, including shares purchased through dividend reinvestment. The cost of these shares is reflected as a reduction of paid-in capital in excess of par in the Consolidated Statements of Condition.

Stock Based Compensation

At December 31, 2018, the Company had a total of 4,951,108 shares available for grants as options, restricted stock, or other forms of related rights under the New York Community Bancorp, Inc. 2012 Stock Incentive Plan ( “2012 Stock Incentive Plan”), which was approved by the Company’s shareholders at its Annual Meeting on June 7, 2012. The Company granted 2,543,023 shares of restricted stock, with an average fair value of $13.50 per share on the date of grant, during the twelve months ended December 31, 2018.

During 2017 and 2016, the Company granted 2,956,249 shares and 2,805,652 shares, respectively, of restricted stock, which had average fair values of $15.16 and $15.21 per share on the respective grant dates. The shares of restricted stock that were granted during the years ended December 31, 2018, 2017, and 2016 vest over a period of five years. Compensation and benefits expense related to the restricted stock grants is recognized on a straight-line basis over the vesting period and totaled $36.3 million, $36.0 million, and $32.7 million, respectively, for the years ended December 31, 2018, 2017, and 2016.

The following table provides a summary of activity with regard to restricted stock awards in the year ended December 31, 2018:


	For the Year Ended December 31, 2018
	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at beginning of year		5,574,167			15.38
Granted		2,543,023			13.50
Vested		(865,022	)		15.15
Cancelled		(347,780	)		14.87
Unvested at end of year		6,904,388			14.74

As of December 31, 2018, unrecognized compensation cost relating to unvested restricted stock totaled $72.1 million. This amount will be recognized over a remaining weighted average period of 2.9 years.