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Share Capital | 12 Months Ended
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Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share Capital | ## 12. Share Capital The authorized share capital of the Company is as follows: ### (a) Authorized Share Capital Class A Shares An unlimited number, subordinate voting shares, carrying one vote each, entitled to dividends equal to or greater than Class B shares, convertible at the option of the holder into one Class B share for each Class A share after the occurrence of certain events related to an offer to purchase all Class B shares. Class B Shares An unlimited number, carrying 20 votes each, convertible at any time at the option of the holder into one Class A share for each Class B share. Preferred A Shares An unlimited number, non-voting, issuable in series. ### (b) Employee Stock Incentive Plan On May 26, 2005, the Company’s shareholders approved the Company’s 2005 Stock Incentive Plan (the “2005 Incentive Plan”). The 2005 Incentive Plan authorizes the issuance of awards to employees, officers, directors and consultants of the Company with respect to 3,000,000 shares of MDC Partners’ Class A Subordinate Voting Shares or any other security in to which such shares shall be exchanged. On June 1, 2007 and on June 2, 2009, the Company’s shareholders approved a total additional authorized Class A Shares of 3,750,000 to be added to the 2005 Incentive Plan for a total of 6,750,000 authorized Class A Shares. On May 30, 2008, the Company’s shareholders approved the 2008 Key Partner Incentive Plan, which provides for the issuance of 900,000 Class A Shares. On June 1, 2011, the Company’s shareholders approved the 2011 Stock Incentive Plan, which provides for the issuance of up to 3,000,000 Class A Shares. As of December 31, 2013, the Company has granted 300,000 Director options (of which 150,000 were forfeited), which option grants were for a ten-year term and vests over five (5) years from the grant date under the 2005 Incentive Plan. The following table summarizes information about time based and financial performance-based restricted stock and restricted stock unit awards granted under the 2005 Incentive Plan, 2008 Key Partner Incentive Plan and 2011 Stock Incentive Plan:
|  | Performance Based Awards |  | Time Based Awards
|  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Balance at December 31, 2010 |  |  | 752,885 |  |  | $ | 5.89 |  |  |  | 924,101 |  |  | $ | 4.93 |
Granted |  |  | 1,646,631 |  |  |  | 12.26 |  |  |  | 446,280 |  |  |  | 11.29 |
Vested |  |  | (326,546 | ) |  |  | 8.49 |  |  |  | (430,851 | ) |  |  | 3.45 |
Forfeited |  |  | (2,135 | ) |  |  | 9.73 |  |  |  | (62,181 | ) |  |  | 5.86 |
Balance at December 31, 2011 |  |  | 2,070,835 |  |  | $ | 10.54 |  |  |  | 877,349 |  |  | $ | 8.57 |
Granted |  |  | 1,130,844 |  |  |  | 8.70 |  |  |  | 375,356 |  |  |  | 7.78 |
Vested |  |  | (2,621,981 | ) |  |  | 9.63 |  |  |  | (395,187 | ) |  |  | 8.17 |
Forfeited |  |  | (44,919 | ) |  |  | 10.44 |  |  |  | (22,080 | ) |  |  | 9.88 |
Balance at December 31, 2012 |  |  | 534,779 |  |  | $ | 10.73 |  |  |  | 835,438 |  |  | $ | 8.48 |
Granted |  |  | 300,756 |  |  |  | 8.97 |  |  |  | 2,612,520 |  |  |  | 16.83 |
Vested |  |  | (353,858 | ) |  |  | 10.63 |  |  |  | (2,499,083 | ) |  |  | 15.79 |
Forfeited |  |  | (19,011 | ) |  |  | 7.90 |  |  |  | (35,087 | ) |  |  | 10.91 |
Balance at December 31, 2013 |  |  | 462,666 |  |  | $ | 9.79 |  |  |  | 913,788 |  |  | $ | 12.54 |
The total fair value of restricted stock and restricted stock unit awards, which vested during the year ended December 31, 2013, 2012 and 2011 was $43,227, $22,557 and $8,269, respectively. In connection with the vesting of these awards, the Company included in the taxable loss the amounts of $17,219, $5,242 and $7,280 in 2013, 2012 and 2011, respectively. At December 31, 2013, the weighted average remaining contractual life for performance based awards is 2.6 years and for time based awards is 1.9 years. At December 31, 2013, the fair value of all restricted stock and restricted stock unit awards is $35,113. The term of these awards is three years with vesting up to three years. At December 31, 2013, the unrecognized compensation expense for these awards was $8,597 and will be recognized through 2016. At December 31, 2013, there are 428,772 awards available to grant. The Company’s Board of Directors adopted the 2005 Incentive Plan as a replacement for MDC Partners’ Amended and Restated Stock Option Incentive Plan (the “Prior 2003 Plan”). Following approval of the 2005 Incentive Plan, the Company ceased making awards under the Prior 2003 Plan. Prior to adoption of the 2005 Incentive Plan, the Company’s Prior 2003 Plan provided for grants of up to 2,836,179 options to employees, officers, directors and consultants of the Company. All the options granted were for a term of five years from the date of the grant and vest 20% on the date of grant and a further 20% on each anniversary date. In addition, the Company granted 802,440 options, on the privatization of Maxxcom, with a term of no more than 10 years from initial date of grant by Maxxcom and vest 20% in each of the first two years with the balance vesting on the third anniversary of the initial grant. Information related to share option transactions grant under all plans over the past three years is summarized as follows:
|  | Options Outstanding |  | Options Exercisable |  | Non Vested Options
|  | Number Outstanding |  | Weighted Average Price per Share |  | Number Outstanding |  | Weighted Average Price per Share
Balance at December 31, 2010 |  |  | 324,300 |  |  | $ | 6.27 |  |  |  | 286,800 |  |  | $ | 6.27 |  |  |  | 37,500 |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | (30,000 | )
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Exercised |  |  | (169,628 | ) |  |  | 5.96 |  |  |  |  |  |  |  |  |  |  |  | — |
Expired and cancelled |  |  | (22,552 | ) |  |  | 8.38 |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2011 |  |  | 132,120 |  |  | $ | 6.08 |  |  |  | 124,620 |  |  | $ | 6.09 |  |  |  | 7,500 |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | (7,500 | )
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Exercised |  |  | (4,728 | ) |  |  | 5.79 |  |  |  |  |  |  |  |  |  |  |  | — |
Expired and cancelled |  |  | (14,892 | ) |  |  | 5.19 |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2012 |  |  | 112,500 |  |  | $ | 6.35 |  |  |  | 112,500 |  |  | $ | 6.35 |  |  |  | — |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Expired and cancelled |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2013 |  |  | 112,500 |  |  | $ | 6.03 |  |  |  | 112,500 |  |  | $ | 6.03 |  |  |  | — |
At December 31, 2013, the intrinsic value of vested options and the intrinsic value of all options was $2,191. For options exercised during 2013, 2012 and 2011, the Company received cash proceeds of nil, $27 and $1,011, respectively. The Company did not receive any windfall tax benefits. The intrinsic value of options exercised during 2013, 2012 and 2011 was nil, $5 and $900, respectively. At December 31, 2013, the weighted average remaining contractual life of all outstanding options was 2.8 years and for all vested options was 2.8 years. At December 31, 2013, the unrecognized compensation expense of all options was nil. Share options outstanding as of December 31, 2013 are summarized as follows:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Outstanding Number |  | Weighted Average Contractual Life |  | Weighted Average Price per Share |  | Exercisable Number |  | Weighted Average Price per Share |  | Weighted Average Contractual Life
$5.83 – $6.14 |  |  | 112,500 |  |  |  | 2.8 |  |  | $ | 6.03 |  |  |  | 112,500 |  |  | $ | 6.03 |  |  |  | 2.8 |
### (c) Stock Appreciation Rights During 2003, the Compensation Committee of the Board of Directors approved a SAR’s compensation program for senior officers and directors of the Company. SAR’s granted prior to 2006 have a term of four years, for SAR’s granted in 2006 and after they have a term of up to 10 years and all awards vest one-third on each anniversary date. SAR’s granted and outstanding are as follows:
|  | SAR’s Outstanding |  | SAR’s Exercisable |  | Non Vested SAR’s
|  | Weighted Average Number Outstanding |  | Weighted Average Price per Share |  | Number Outstanding |  | Price per Share
Balance at December 31, 2010 |  |  | 4,996,655 |  |  | $ | 2.52 |  |  |  | 2,665,551 |  |  | $ | 2.51 |  |  |  | 2,331,104 |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | (435,134 | )
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Exercised |  |  | (259,461 | ) |  |  | 2.82 |  |  |  |  |  |  |  |  |  |  |  | (259,461 | )
Expired and cancelled |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2011 |  |  | 4,737,194 |  |  | $ | 2.50 |  |  |  | 3,100,685 |  |  | $ | 2.50 |  |  |  | 1,636,509 |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | (1,570,539 | )
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Exercised |  |  | (104,048 | ) |  |  | 2.94 |  |  |  |  |  |  |  |  |  |  |  | (65,970 | )
Expired and cancelled |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2012 |  |  | 4,633,146 |  |  | $ | 2.49 |  |  |  | 4,633,146 |  |  | $ | 2.49 |  |  |  | — |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Exercised |  |  | (4,633,146 | ) |  |  | 2.49 |  |  |  |  |  |  |  |  |  |  |  | — |
Expired and cancelled |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2013 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |  |  |  | — |
At December 31, 2013, the aggregate amount of shares to be issued on vested SAR’s was nil. During 2013, 2012 and 2011, the aggregate value of SAR’s exercised was $80,323, $301 and $2,289, respectively. The Company received tax deductions of $12,682, $296 and $387 in 2013, 2012 and 2011, respectively. In November 2013, the Company determined that all outstanding SAR’s would be settled in cash and marked the SAR’s to market. At December 31, 2013, the unrecognized compensation expense of all SAR’s was nil. ### (d) Equity Value Appreciation Awards In January 2011, the Company awarded 2,119,500 extraordinary Equity Value Appreciation Awards (“EVARs”) to its employees. During 2013, these EVARs resulted in the issuance of 1,917,000 restricted stock units and restricted stock shares (“RSUs”). The RSUs underlying the EVAR grant vested on December 31, 2013. The Company measured the fair value of EVARs using a lattice based model (Monte Carlo) on the grant date. Information related to EVAR transactions over the past three years is summarized as follows:
|  | EVARs Outstanding |  | EVARs Exercisable |  | Non Vested EVARs
|  | Number Outstanding |  | Weighted Average Issuance Price per Share |  | Number Outstanding |  | Weighted Average Issuance Price per Share
Balance at December 31, 2010 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |  |  |  | — |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Granted |  |  | 2,119,500 |  |  |  | 15.33 |  |  |  |  |  |  |  |  |  |  |  | 2,119,500 |
Expired and cancelled |  |  | (67,500 | ) |  |  | 15.33 |  |  |  |  |  |  |  |  |  |  |  | (67,500 | )
Balance at December 31, 2011 |  |  | 2,052,000 |  |  | $ | 15.33 |  |  |  |  |  |  | $ |  |  |  |  | 2,052,000 |
Vested |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Expired and cancelled |  |  | (135,000 | ) |  |  | 15.33 |  |  |  |  |  |  |  |  |  |  |  | (135,000 | )
Balance at December 31, 2012 |  |  | 1,917,000 |  |  | $ | 15.33 |  |  |  | — |  |  | $ | — |  |  |  | 1,917,000 |
Vested |  |  | (1,917,000 | ) |  |  | 15.33 |  |  |  |  |  |  |  |  |  |  |  | (1,917,000 | )
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Expired and cancelled |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Balance at December 31, 2013 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |  |  |  | — |
The grant date fair value of these EVARs was $13,240. At December 31, 2013, there are no outstanding EVARs. The Company has reserved a total of 2,923,509 Class A shares in order to meet its obligations under various conversion rights, warrants and employee share related plans. At December 31, 2013 there were 1,434,554 shares available for future option and similar grants.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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