SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2019

NOTE K – SHARE-BASED COMPENSATION

Stock Awards

As of December 31, 2018, the Company had outstanding restricted stock units (“RSUs”) granted under the 2005 Ownership Incentive Plan (“the 2005 Plan”). On April 30, 2019, the Company’s stockholders approved the ArcBest Ownership Incentive Plan (“the Ownership Incentive Plan”) to amend and restate the 2005 Plan. The Ownership Incentive Plan provides for the granting of 4.0 million shares, which may be awarded as incentive and nonqualified stock options, stock appreciation rights, restricted stock, RSUs, or performance award units. The Company had outstanding RSUs granted under the Ownership Incentive Plan as of December 31, 2019.

Restricted Stock Units

A summary of the Company’s RSU award program is presented below:


		Weighted-Average
		Grant Date
	Units	Fair Value
Outstanding – January 1, 2019	1,436,983	$	25.81
Granted	386,840	$	27.75
Vested	(170,935)	$	39.60
Forfeited⁽¹⁾	(35,768)	$	25.97
Outstanding – December 31, 2019	1,617,120	$	24.82

(1)	Forfeitures are recognized as they occur.

The Compensation Committee of the Company’s Board of Directors granted RSUs during the years ended December 31, 2019, 2018, and 2017 as follows:


		Weighted-Average
		Grant Date
	Units	Fair Value
2019	386,840	$	27.75
2018	231,510	$	44.50
2017	504,550	$	16.39

Beginning with 2018 grants, the vesting date for RSUs granted to employees was reduced from the end of a five-year period to the end of a four-year period following the date of grant. The fair value of restricted stock awards that vested in 2019, 2018, and 2017 was $4.9 million, $9.6 million, and $11.2 million, respectively. Unrecognized compensation cost related to restricted stock awards outstanding as of December 31, 2019 was $18.3 million, which is expected to be recognized over a weighted-average period of approximately 2.05 years.