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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-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:
(in thousands)
Common stock authorized11,000 
Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled awards(3,569)
Common stock available for grant of stock-based awards as of December 31, 20217,431 
In addition, vested and unvested options to purchase 2,531 shares of common stock and 2,849 shares of unvested restricted stock awarded under the 2006 Plan were outstanding as of December 31, 2021.
For the years ended December 31, 2021, 2020 and 2019, total equity-based compensation were as follows:
Years Ended December 31,
(in thousands)202120202019
Restricted stock$18,144 $18,740 $19,143 
Stock options4,134 3,899 4,027 
Total$22,278 $22,639 $23,170 
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/(Loss).
Restricted Stock
The following table summarizes restricted stock activity during the year ended December 31, 2021:
(in thousands)
Number of SharesWeighted Average Fair Value
at Grant Date
Outstanding at January 1, 20213,651 $20.81 
Granted413 40.64 
Vested(1,166)19.93 
Forfeited(49)35.26 
Outstanding at December 31, 20212,849 $23.81 
As of December 31, 2021, the Company had $47,483 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 3.2 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, 2021, 2020 and 2019 was $23,231, $23,839 and $23,263, respectively.
Stock Options
Activity relating to stock options granted under the Company’s plans during the year ended December 31, 2021 were as follows:
(in thousands except for per share price)Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual TermAggregate Intrinsic Value
Outstanding at January 1, 20212,674 $26.80 
Granted270 43.30 
Exercised(411)23.67 
Forfeited(2)31.56 
Outstanding at December 31, 20212,531 $29.06 2.7 years$44,054 
Vested and Exercisable at December 31, 20212,070 $28.20 2.6 years$37,829 
At December 31, 2021, $2.2 million of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.2 years.
Additional information pertaining to the Company's stock option plan were as follows:
Years Ended December 31,
(in thousands)202120202019
Cash received from the exercise of stock options$9,732 $1,609 $6,212 
Intrinsic value of stock options exercised$8,622 $993 $4,268 
Tax benefits realized on exercise of stock options$1,512 $234 $1,010 
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 2021, 2020 and 2019:
Years Ended December 31,
202120202019
Volatility
40.3% to 49.6%
33.9% to 56.7%
32.0% to 39.6%
Risk free interest rate
0.1% to 1.0%
0.2% to 1.6%
1.6% to 2.5%
Expected life in years
2.0 to 4.0
3.0 to 5.0
1.0 to 5.0
Dividend yield1.4%1.2%1.6%
Weighted average fair value$13.30$10.15$5.38