XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.20.4

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 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 | (2,126,956) |
Common stock available for grant of stock-based awards as of December 31, 2020 | 8,873,044 |
For the years ended December 31, 2020, 2019 and 2018, total equity-based compensation was as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Restricted stock | $ | 18,740 |  |  | $ | 19,143 |  |  | $ | 16,720 |
Stock options | 3,899 |  |  | 4,027 |  |  | 4,356 |
Total | $ | 22,639 |  |  | $ | 23,170 |  |  | $ | 21,076 |
We calculate an estimated forfeiture rate annually based on historical forfeiture and expectations about future forfeitures. Equity-based compensation is included in operating expenses on the Company’s Consolidated Statements of Income. Stock Options Cash proceeds and intrinsic values related to total stock options exercised during December 31, 2020, 2019 and 2018 are as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Proceeds from stock options exercised | $ | 1,609 |  |  | $ | 6,212 |  |  | $ | 13,036 |
Intrinsic value of stock options exercised | $ | 993 |  |  | $ | 4,268 |  |  | $ | 6,841 |
During the years ended December 31, 2020, 2019 and 2018, options to purchase approximately 642,534 shares of common stock with a weighted average exercise price of $26.72, 738,903 options with a weighted average exercise price of $28.20 and 773,351 options with a weighted average exercise price of $26.38 vested, respectively. As of December 31, 2020, there were unvested options relating to 746,316 shares of common stock outstanding with a total of $3,547 of unrecognized compensation cost and an average vesting period of 1.2 years. Total consideration received for stock option exercises during the twelve months ended December 31, 2020, 2019 and 2018 was $1,609, $6,212, and $13,036, respectively. The windfall tax benefit realized on these exercises in 2020, 2019 and 2018 was approximately $234, $1,010 and $713, respectively. 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 2020, 2019 and 2018:
| 2020 |  | 2019 |  | 2018
Volatility | 33.9% to 56.7% |  | 32.0% to 39.6% |  | 25.1% to 33.2%
Risk free interest rate | 0.2% to 1.6% |  | 1.6% to 2.5% |  | 2.1% to 2.9%
Expected life in years | 3.0 to 5.0 |  | 1.0 to 5.0 |  | 3.0 to 5.0
Dividend yield | 1.2% |  | 1.6% |  | 1.7%
Weighted average fair value | $10.15 |  | $5.38 |  | $6.75
Activity relating to stock options granted under the Company’s plans during the three years ended December 31, 2020 is as follows:
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at January 1, 2018 | 2,846,000 |  |  | $ | 23.87 |  |  |  |  |
Granted | 585,000 |  |  | 32.39 |  |  |  |  |
Exercised | (593,000) |  |  | 22.04 |  |  |  |  |
Forfeited | (23,000) |  |  | 22.59 |  |  |  |  |
Outstanding at December 31, 2018 | 2,815,000 |  |  | 26.03 |  |  |  |  |
Granted | 272,000 |  |  | 30.93 |  |  |  |  |
Exercised | (273,000) |  |  | 22.77 |  |  |  |  |
Forfeited | (12,000) |  |  | 20.17 |  |  |  |  |
Outstanding at December 31, 2019 | 2,802,000 |  |  | 26.85 |  |  |  |  |
Granted | 509,000 |  |  | 34.40 |  |  |  |  |
Exercised | (80,000) |  |  | 21.57 |  |  |  |  |
Forfeited | (557,000) |  |  | 34.74 |  |  |  |  |
Outstanding at December 31, 2020 | 2,674,000 |  |  | $ | 26.80 |  |  | 3.2 |  | $ | 23,278 |
Exercisable at December 31, 2020 | 1,928,000 |  |  | $ | 26.89 |  |  | 3.0 |  | $ | 16,416 |
The following table summarizes information about stock options at December 31, 2020:
| Options Outstanding |  | Options Exercisable
Range of Exercise Price | Number Outstanding |  | Weighted Average Remaining Contractual Life (in Years) |  | Weighted Average Exercise Price |  | Number Exercisable |  | Weighted Average Exercise Price
$20.15 to $24.72 | 465,000 |  |  | 1.5 |  | $23.30 |  | 400,000 |  |  | $23.22
$24.73 to $29.30 | 1,605,000 |  |  | 3.3 |  | 25.18 |  | 1,031,000 |  |  | 25.33
$29.31 to $33.88 | 290,000 |  |  | 5.3 |  | 30.45 |  | 252,000 |  |  | 30.26
$33.89 to $38.47 | 263,000 |  |  | 2.7 |  | 35.85 |  | 242,000 |  |  | 35.90
$38.48 to $43.05 | 51,000 |  |  | 5.8 |  | 42.14 |  | 3,000 |  |  | 41.18
| 2,674,000 |  |  | 3.2 |  | $26.80 |  | 1,928,000 |  |  | $26.89
Restricted Stock The following table summarizes restricted stock activity during the three years ended December 31, 2020:
| Number of Shares |  | Weighted Average Fair Value at Grant Date
Outstanding at January 1, 2018 | 5,876,000 |  |  | $ | 17.37 |
Granted | 509,000 |  |  | 31.70 |
Vested | (1,177,000) |  |  | 18.44 |
Forfeited | (71,000) |  |  | 25.61 |
Outstanding at December 31, 2018 | 5,137,000 |  |  | 18.42 |
Granted | 633,000 |  |  | 32.64 |
Vested | (1,200,000) |  |  | 19.40 |
Forfeited | (143,000) |  |  | 28.61 |
Outstanding at December 31, 2019 | 4,427,000 |  |  | 19.84 |
Granted | 561,000 |  |  | 30.35 |
Vested | (1,189,000) |  |  | 19.96 |
Forfeited | (148,000) |  |  | 34.89 |
Outstanding at December 31, 2020 | 3,651,000 |  |  | $ | 20.81 |
As of December 31, 2020, the Company had $50,210 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 3.4 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. The fair value of the restricted stock that vested during the years ended December 31, 2020, 2019 and 2018 was $23,839, $23,263 and $36,122, respectively. On January 3, 2012, the Company and its Creative and Design Chief, Steven Madden, entered into an amendment of Mr. Madden’s existing employment agreement, pursuant to which, on February 8, 2012, Mr. Madden was granted 2,194,586 restricted shares of the Company’s common stock at the then market price of $18.23, which vest in equal annual installments over a seven-year period commencing on December 31, 2017 and, thereafter, on each December 31 through December 31, 2023, subject to Mr. Madden’s continued employment on each such vesting date. On June 30, 2012, Mr. Madden exercised his right under his employment agreement to receive an additional restricted stock award, and on July 3, 2012, he was granted 2,840,013 restricted shares of the Company's common stock at the then market price of $14.09, which vest in equal annual installments over a six-year period commencing on December 31, 2018 and, thereafter, on each December 31 through December 31, 2023, subject to Mr. Madden’s continued employment on each such vesting date. On March 1, 2017, pursuant to his employment agreement, Mr. Madden was granted an option to purchase 1,125,000 shares of the Company’s common stock at an exercise price of $24.90 per share, which option is exercisable in equal annual installments over a five-year period commencing on the first anniversary of the grant date. On March 25, 2019, pursuant to an amendment of the employment agreement between the Company and Mr. Madden, which effected the extension of the term of the agreement through December 31, 2026, Mr. Madden was granted 200,000 restricted shares of the Company's common stock. The restricted stock award will vest in three nearly equal annual installments commencing on December 31, 2024. On August 19, 2019, pursuant to his employment agreement with the Company, Mr. Madden was granted an option to purchase 225,000 shares of the Company's common stock at an exercise price of $30.14 per share, which option vested in four equal installments on November 19, 2019, February 19, 2020, May 19, 2020 and June 30, 2020. On June 30, 2020, pursuant to his employment agreement with the Company, Mr. Madden 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 vests in four equal quarterly installments commencing on September 30, 2020 and ending on June 30, 2021. As of December 31, 2020, Mr. Madden had unvested options to purchase 562,500 shares of the Company's common stock and 2,560,543 restricted shares of the Company's common stock.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration