Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2021

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

NOTE 13 – STOCK-BASED COMPENSATION PLANS

The Company grants stock options and stock equivalent units (“SEUs”) from time to time as a long-term performance incentive. In certain cases the grants are subject to performance conditions such as the Company’s stock price. Where performance conditions apply the Monte Carlo simulation model is used to determine the fair values. Otherwise the Black-Scholes model is used to determine the fair values.

Stock option plans

The following table summarizes the transactions of the Company’s stock option plans for the six months ended June 30, 2021.


	Number of Options			Weighted Average Exercise Price		Weighted Average Grant-Date Fair Value
Outstanding at December 31, 2020		442,893		$	32.49	$	45.31
Granted - at discount		81,596		$	0.00	$	92.37
- at market value		10,688		$	99.85	$	32.73
Exercised		(52,870	)	$	32.93	$	38.15
Forfeited		(17,806	)	$	17.98	$	65.96
Outstanding at June 30, 2021		464,501		$	28.75	$	53.57

At June 30, 2021, there were 87,136 stock options that were exercisable, of which 65,176 had performance conditions attached.

The stock option compensation cost for the first six months of 2021 was $2.9 million (first six months of 2020 – $2.8 million). The total intrinsic value of options exercised in the first six months of 2021 was $1.7 million (first six months of 2020 – $4.6 million).

The total compensation cost related to

non-vested

stock options not yet recognized at June 30, 2021 was $10.5 million and this cost is expected to be recognized over the weighted-average period of 2.15 years.

Stock equivalent units

The following table summarizes the transactions of the Company’s SEUs for the six months ended June 30, 2021:


	Number of SEUs			Weighted Average Exercise Price		Weighted Average Grant-Date Fair Value
Outstanding at December 31, 2020		390,164		$	4.35	$	63.96
Granted - at discount		91,451		$	0.00	$	92.01
- at market value		3,803		$	99.85	$	32.71
Exercised		(29,573	)	$	16.67	$	43.05
Forfeited		(21,940	)	$	2.76	$	67.01

Outstanding at June 30, 2021		433,905		$	3.51	$	70.87

At June 30, 2021 there were 32,132 SEUs that are exercisable, of which 27,935 had performance conditions attached.

The charges for SEUs are spread over the life of the award subject to a revaluation to fair value each quarter. The revaluation may result in a charge or a credit to the income statement in the quarter dependent upon our share price and other performance criteria.

The SEU compensation for the first six months of 2021 was a $2.9 million charge (first six months of 2020 – $3.0 million credit). The total intrinsic value of SEUs exercised in the first six months of 2021 was $1.3 million (first six months of 2020 – $6.1 million).

The weighted-average remaining vesting period of

non-vested

SEUs is 2.08 years.