Share-Based Compensation

3 Months Ended

Mar. 31, 2025

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 three months ended March 31, 2025, we granted options to purchase 557,000 shares of common stock under the 2019 Plan.

In February 2025, 29,500 shares of restricted stock were issued to executive officers with a grant date fair value of $73.34 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 and beginning with 2025, are subject to a one-year post-vesting hold. The restricted stock awards contain non-forfeitable rights to dividends or dividend equivalents during the vesting periods. During the first quarter of 2025, 3,000 shares of restricted stock vested. As of March 31, 2025, there were 58,300 non-vested shares of restricted stock outstanding.

The weighted average fair value of options granted during the three months ended March 31, 2025 and 2024 was $9.35 and $7.36 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:


	2025	2024
Dividend yield	5.2%	6.4%
Expected volatility	24.1%	26.1%
Expected lives	2.95 years	2.9 years
Risk-free interest rate	3.94%	4.49%

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, 2024	2,447,171	$68.80
Options granted	431,000	$57.76


Options expired	(301,837)	$79.96
Options outstanding, March 31, 2024	2,576,334	$65.89

Exercisable at March 31, 2024	2,235,640	$66.99

Options outstanding, January 1, 2025	1,416,215	$71.06
Options granted	557,000	$73.34
Options exercised	(73,984)	$56.10
Options forfeited	(23,501)	$56.75
Options expired	(491,000)	$90.79
Options outstanding, March 31, 2025	1,384,730	$66.03	3.35

Exercisable at March 31, 2025	940,874	$64.44	2.73

At March 31, 2025, the intrinsic value of stock options outstanding and exercisable was $10.9 million and $8.9 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
	March 31,
	2025		2024
Share-based compensation components:
Restricted stock expense	$	224	$	158
Stock option expense	2,334		1,997
Total share-based compensation expense	$	2,558	$	2,155

As of March 31, 2025, unrecognized compensation expense totaling $6.3 million associated with stock-based awards was expected to be recognized over the following periods: remainder of 2025 - $3.2 million, 2026 - $2.0 million, 2027 - $0.7 million, 2028 - $0.3 million, and thereafter - less than $0.1 million.