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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2020
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | Equity-Based Compensation In February 2019, the Company's Board of Directors approved the Steven Madden, Ltd. 2019 Incentive Compensation Plan (the “2019 Plan”), under which non-qualified stock options, stock appreciation rights, performance shares, restricted stock, other stock-based awards and performance-based cash awards may be granted to employees, consultants and non-employee directors. The 2019 Plan is the successor to the Company's Amended and Restated 2006 Stock Incentive Plan, as amended (the "2006 Plan"), the term of which expired on April 6, 2019. The Company's stockholders approved the 2019 Plan at the Company's annual meeting of stockholders held on May 24, 2019. The following table summarizes the number of shares of common stock authorized for issuance under the 2019 Plan, the number of stock-based awards granted (net of expired or cancelled awards) under the 2019 Plan and the number of shares of common stock available for the grant of stock-based awards under the 2019 Plan:
Common stock authorized | 11,000,000 |
Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled awards | (1,977,921) |
Common stock available for grant of stock-based awards as of September 30, 2020 | 9,022,079 |
Total equity-based compensation for the three and nine months ended September 30, 2020 and 2019 is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Restricted stock | $ | 4,647 |  |  | $ | 4,695 |  |  | $ | 14,138 |  |  | $ | 14,250 |
Stock options | 1,085 |  |  | 1,333 |  |  | 2,801 |  |  | 3,386 |
Total | $ | 5,732 |  |  | $ | 6,028 |  |  | $ | 16,939 |  |  | $ | 17,636 |
Equity-based compensation is included in operating expenses on the Company’s Condensed Consolidated Statements of Income. Stock Options Cash proceeds and intrinsic values related to total stock options exercised during the three and nine months ended September 30, 2020 and 2019 are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Proceeds from stock options exercised | $ | — |  |  | $ | 807 |  |  | $ | 960 |  |  | $ | 2,606 |
Intrinsic value of stock options exercised | $ | — |  |  | $ | 453 |  |  | $ | 758 |  |  | $ | 1,295 |
During the three and nine months ended September 30, 2020, options to purchase approximately 65,390 shares of common stock with a weighted average exercise price of $24.86 and options to purchase approximately 575,552 shares of common stock with a weighted average exercise price of $26.83 vested, respectively. During the three and nine months ended September 30, 2019, options to purchase approximately 100,300 shares of common stock with a weighted average exercise price of $28.83 and options to purchase approximately 581,062 shares of common stock with a weighted average exercise price of $27.88 vested, respectively. As of September 30, 2020, there were unvested options relating to 803,298 shares of common stock outstanding with a total of $4,545 of unrecognized compensation cost and an average vesting period of 1.4 years. The Company uses the Black-Scholes-Merton option-pricing model to estimate the fair value of options granted, which requires several assumptions. The expected term of the options represents the estimated period of time until exercise and is based on the historical experience of similar awards. Expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield is based on the Company's annualized dividend per share amount divided by the Company's stock price. The following weighted average assumptions were used for stock options granted during the nine months ended September 30, 2020 and 2019:
|  | 2020 |  | 2019
Volatility |  | 33.9% to 50.0% |  | 32.0% to 39.6%
Risk free interest rate |  | 0.2% to 1.6% |  | 1.7% to 2.5%
Expected life in years |  | 3.0 to 5.0 |  | 1.0 to 5.0
Dividend yield |  | 1.3% |  | 1.7%
Weighted average fair value |  | $10.16 |  | $5.12
Activity relating to stock options granted under the Company’s plans during the nine months ended September 30, 2020 is as follows:
|  | Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at January 1, 2020 |  | 2,802,000 |  |  | $ | 26.85 |  |  |  |  |
Granted |  | 499,000 |  |  | 34.61 |  |  |  |  |
Exercised |  | (52,000) |  |  | 20.58 |  |  |  |  |
Forfeited |  | (557,000) |  |  | 34.74 |  |  |  |  |
Outstanding at September 30, 2020 |  | 2,692,000 |  |  | $ | 26.77 |  |  | 3.4 years |  | $ | — |
Exercisable at September 30, 2020 |  | 1,888,000 |  |  | $ | 26.88 |  |  | 3.2 years |  | $ | — |
Restricted Stock The following table summarizes restricted stock activity during the nine months ended September 30, 2020 and 2019:
|  | 2020 |  | 2019
|  | Number of Shares |  | Weighted Average Fair Value at Grant Date |  | Number of Shares |  | Weighted Average Fair Value at Grant Date
Outstanding at January 1, |  | 4,427,000 |  |  | $ | 19.84 |  |  | 5,135,000 |  |  | $ | 18.42 |
Granted |  | 478,000 |  |  | 31.78 |  |  | 629,000 |  |  | 32.57 |
Vested |  | (326,000) |  |  | 27.90 |  |  | (311,000) |  |  | 26.36 |
Forfeited |  | (111,000) |  |  | 37.19 |  |  | (52,000) |  |  | 28.90 |
Outstanding at September 30, |  | 4,468,000 |  |  | $ | 20.10 |  |  | 5,401,000 |  |  | $ | 19.49 |
As of September 30, 2020, the Company had $53,957 of total unrecognized compensation cost related to restricted stock awards granted under the 2019 Plan and the 2006 Plan. This cost is expected to be recognized over a weighted average period of 3.6 years. The Company determines the fair value of its restricted stock awards based on the market price of its common stock on the date of grant. On June 30, 2020, pursuant to his employment agreement with the Company, Steve Madden, the Company's founder and Creative and Design Chief, was granted an option to purchase 225,000 shares of the Company's common stock at an exercise price of $24.83 per share, which option will vest in four equal installments commencing on September 30, 2020 and ending on June 30, 2021. As of September 30, 2020, Mr. Madden had unvested options to purchase 618,750 shares of the Company's common stock and 3,347,390 restricted shares of the Company's common stock.

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