Share-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

The Company’s outstanding stock incentive awards have been granted under two incentive plans – the 2012 Stock Incentive Plan and the 2019 Stock Incentive Plan, as amended and restated (the “2019 Plan”). During the nine months ended September 30, 2024, we granted options to purchase 431,000 shares of common stock under the 2019 Plan.

In February 2024, 15,000 shares of restricted stock were issued to executive officers with a grant date fair value of $57.76 per share based on the market value of our common stock on the date of grant. The restricted stock vests over five years, with 20% vesting on each anniversary of the date of grant. The restricted stock awards contain non-forfeitable rights to dividends or dividend equivalents during the vesting periods. During the second quarter of 2024, 3,970 net shares of restricted stock vested. As of September 30, 2024, there were 31,800 non-vested shares of restricted stock outstanding.

The weighted average fair value of options granted during the nine months ended September 30, 2024 and 2023 was $7.36 and $10.56 per option, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


	2024	2023
Dividend yield	6.4%	6.9%
Expected volatility	26.1%	39.0%
Expected lives	2.9 years	2.9 years
Risk-free interest rate	4.49%	4.56%

The following table summarizes our outstanding stock options:


			Weighted Average
	Number	Weighted Average	Remaining
	of Shares	Exercise Price	Contractual Life (Years)
Options outstanding, January 1, 2023	2,216,175	$70.97
Options granted	385,500	$54.73
Options exercised	(5,166)	$53.41
Options forfeited	(61,168)	$66.44
Options expired	(88,170)	$64.33
Options outstanding, September 30, 2023	2,447,171	$68.80

Exercisable at September 30, 2023	2,078,827	$71.40

Options outstanding, January 1, 2024	2,447,171	$68.80
Options granted	431,000	$57.76
Options exercised	(1,065,119)	$58.24

Options expired	(301,837)	$79.96
Options outstanding, September 30, 2024	1,511,215	$70.87	2.02

Exercisable at September 30, 2024	1,170,521	$74.94	1.42

At September 30, 2024, the intrinsic value of stock options outstanding and exercisable was $23.4 million and $14.1 million, respectively.

The following is a summary of share-based compensation expense, net of any forfeitures, included in “General and administrative expenses” in the Condensed Consolidated Statements of Income ($ in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Share-based compensation components:
Restricted stock expense	$	166	$	119	$	510	$	191
Stock option expense	504		747		3,002		3,549
Total share-based compensation expense	$	670	$	866	$	3,512	$	3,740

As of September 30, 2024, unrecognized compensation expense totaling $2.3 million associated with stock-based awards was expected to be recognized over the following periods: remainder of 2024 - $0.7 million, 2025 - $1.1 million, 2026 - $0.3 million, 2027 - $0.1 million, and thereafter - $0.1 million.