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Share-Based Compensation

Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant).

The Company issues share-based awards through several plans that are described in detail in the notes to the consolidated financial statements for the year ended

December 31, 2019.

The compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands):

	Three Months Ended
	March 31,
Share-based compensation related to:	2020		2019
Common stock grants	$	100	$	100
Stock option grants		60		7
Restricted Stock Unit Awards ("RSUs")		377		187
Total share-based compensation	$	537	$	294

The total income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements was approximately

$348

thousand and

$164

thousand for the

three

-month periods ended

March 31, 2020

and

2019,

respectively.

The following is a summary of stock option activity under all plans for the

three

-month period ended

March 31, 2020

	Shares Under Options			Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2019		105,614		$	25.34
Granted		-
Exercised		(19,586	)	$	21.20
Outstanding at March 31, 2020		86,028		$	26.28		5.70	$	1,025
Exercisable at March 31, 2020		65,742		$	23.04		5.00	$	989
Vested and expected to vest at March 31, 2020		86,028		$	26.28		5.70	$	1,025

During the

three

-month period ended

March 31, 2020

, the total intrinsic value of all options exercised (i.e., the difference between the market price on the exercise date and the price paid by the employees to exercise the options) was approximately

$530

thousand, and the total amount of consideration received by the Company from the exercised options was approximately

$415

thousand. During the

three

-month period ended

March 31, 2019

, the total intrinsic value of all options exercised was approximately

$274

thousand, and the total amount of consideration received by the Company from the exercised options was approximately

$285

thousand. At its discretion, the Company allows option holders to surrender previously owned common stock in lieu of paying the exercise price and withholding taxes. During both the

three

-month periods ended

March

31,

2020

and

2019,

shares were

surrendered for this purpose.

February 24, 2020

, the Company’s Compensation Committee approved the award of

$400

thousand, payable in shares of common stock to the Company’s Chairman, Chief Executive Officer, and President under the

2003

Incentive Plan. Subject to his continued employment and the terms of his employment agreement, the shares will be issued in

December 2020.

The following table summarizes information about RSU activity during the

three

-month period ended

March 31, 2020:

	Restricted Stock Units			Weighted Average Award Date Fair Value
Outstanding at December 31, 2019		113,866		$	28.36
Awarded		42,733			49.96
Shares vested		(28,244	)		27.02
Outstanding at March 31, 2020		128,355		$	31.58

At the Company’s discretion, upon vesting RSU holders are given the option to net-share settle to cover the required minimum withholding tax and the remaining amount is converted into the equivalent number of common shares and issued to the RSU holder. During the

three

-month periods ended

March 31, 2020

and

2019,

11,195

and

8,132

shares were surrendered at an average market price of

$49.99

and

$33.35,

respectively.

As of

March 31, 2020,

the Company had approximately

$4.0

million of unrecognized compensation expense that is expected to be recognized over a period of

years