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Stock-Based Compensation Plans | 6 Months Ended
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Jun. 30, 2021
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation Plans |
10. | Stock-Based Compensation Plans
2013 Omnibus Equity Incentive Plan The Company’s board of directors adopted the 2013 Omnibus Equity Incentive Plan (the “2013 Plan”), which became effective upon the Company’s IPO. In February 2017, the board of directors amended and restated the 2013 Plan, which was approved by the Company’s stockholders in May 2017. Grants are made from time to time by the compensation committee of the Company’s board of directors at its discretion, subject to certain restrictions as to the number and value of shares that may be granted to any individual. In addition, non-employee directors receive annual grants under a director compensation policy. As of June 30, 2021, there were 4,718,747 shares available for future grants under the 2013 Plan. Awards Granted and Settled Under the 2013 Plan, the Company has issued RSAs to non-employee directors and restricted stock units (“RSUs”) to employees and independent contractors. RSAs vest over a one-year period from the date of grant, subject to service requirements. RSUs generally vest in equal annual installments over a five-year period from the date of grant or earlier as approved by the compensation committee of the Company’s board of directors. Any unvested awards are canceled upon termination as a service provider. As of June 30, 2021, there were no issued or outstanding options, SARs, performance units or performance share awards under the 2013 Plan. During the six months ended June 30, 2021, 183,315 shares of RSUs vested and 58,539 shares of common stock were withheld to pay applicable required employee statutory withholding taxes based on the market value of the shares on the vesting date. The shares withheld for taxes were returned to the share reserve and are available for future issuance in accordance with provisions of the 2013 Plan. During the six months ended June 30, 2021, there were no deferred stock units (“DSUs”) that settled. Outstanding Awards Activity under the 2013 Plan consisted of the following (dollars in thousands, except weighted average per share data):
|  | RSA Grants to Non-employee Directors |  |  | RSU Grants to Employees |  |  | RSU Grants to Independent Contractors |  |  | Total |  |  | Weighted- Average Grant Date Fair Value Per Share |
Nonvested shares at December 31, 2020 (1) |  |  | 16,728 |  |  |  | 637,650 |  |  |  | 264,001 |  |  |  | 918,379 |  |  | $ | 33.73 |
Granted |  |  | 12,492 |  |  |  | 247,469 |  |  |  | 15,386 |  |  |  | 275,347 |  |  | $ | 38.57 |
Vested |  |  | (16,728 | ) |  |  | (155,379 | ) |  |  | (27,936 | ) |  |  | (200,043 | ) |  | $ | 32.31 |
Transferred |  |  | — |  |  |  | (3,220 | ) |  |  | 3,220 |  |  |  | — |  |  | $ | 31.05 |
Forfeited/canceled |  |  | — |  |  |  | (16,476 | ) |  |  | (3,585 | ) |  |  | (20,061 | ) |  | $ | 33.05 |
Nonvested shares at June 30, 2021 (1) |  |  | 12,492 |  |  |  | 710,044 |  |  |  | 251,086 |  |  |  | 973,622 |  |  | $ | 34.86 |
Unrecognized stock-based compensation expense as of June 30, 2021 (2) |  | $ | 378 |  |  | $ | 23,442 |  |  | $ | 6,634 |  |  | $ | 30,454 |  |  |  |  |
Weighted average remaining vesting period (years) as of June 30, 2021 |  |  | 0.84 |  |  |  | 3.75 |  |  |  | 2.99 |  |  |  | 3.55 |  |  |  |  |
(1) | Nonvested RSUs will be settled through the issuance of new shares of common stock.
(2) | The total unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately 3.55 years.
Employee Stock Purchase Plan In 2013, the Company adopted the 2013 Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to qualify under Section 423 of the Internal Revenue Code and provides for consecutive, non-overlapping 6-month offering periods. The offering periods generally start on the first trading day on or after May 15 and November 15 of each year. Qualifying employees may purchase shares of the Company stock at a 10% discount based on the lower of the market price at the beginning or end of the offering period, subject to IRS limitations. The Company determined that the ESPP was a compensatory plan and is required to expense the fair value of the awards over each 6-month offering period. The ESPP initially had 366,667 shares of common stock reserved, and 165,242 shares of common stock remain available for issuance as of June 30, 2021. The ESPP provides for annual increases in the number of shares available for issuance under the ESPP, equal to the least of (i) 366,667 shares, (ii) 1% of the outstanding shares on such date, or (iii) an amount determined by the compensation committee of the board of directors. Pursuant to the provisions of the ESPP, the board of directors has determined to not provide for any annual increases to date. At June 30, 2021, total unrecognized compensation cost related to the ESPP was $50,000 and is expected to be recognized over a weighted average period of 0.38 years. SARs and DSUs Prior to the IPO, certain employees were granted SARs. As of March 31, 2013, the outstanding SARs were frozen at the liability amount, and will be paid out to each participant in installments upon retirement or departure under the terms of the revised SARs agreements. To replace beneficial ownership in the SARs, the difference between the book value liability and the fair value of the awards was granted to plan participants in the form of DSUs, which were fully vested upon receipt and will be settled in actual stock at a rate of 20% per year if the participant remains employed by the Company during that period (otherwise all unsettled shares of stock upon termination from service will be settled five years from the termination date, unless otherwise agreed to by the Company). In the event of death or termination of service after reaching the age of 67, 100% of the DSUs will be settled. As of June 30, 2021, the remaining future share settlements of fully vested DSUs by year consisted of the following:
|  | June 30, 2021 |
2021 |  |  | 60,373 |
2022 |  |  | 281,193 |
|  |  | 341,566 |
Summary of Stock-Based Compensation Components of stock-based compensation are included in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income and consisted of the following (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
ESPP |  | $ | 24 |  |  | $ | 36 |  |  | $ | 74 |  |  | $ | 83 |
RSAs – non-employee directors |  |  | 113 |  |  |  | 213 |  |  |  | 224 |  |  |  | 373 |
RSUs – employees |  |  | 1,747 |  |  |  | 1,514 |  |  |  | 3,201 |  |  |  | 3,170 |
RSUs – independent contractors |  |  | 778 |  |  |  | 773 |  |  |  | 1,451 |  |  |  | 1,542 |
|  | $ | 2,662 |  |  | $ | 2,536 |  |  | $ | 4,950 |  |  | $ | 5,168 |

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