STOCKHOLDERS’ EQUITY

Restricted Stock

During the three months ended March 31, 2020, we issued restricted stock to certain employees totaling 10,200 shares that vest over a three-year period and had an aggregate grant date market value of approximately $0.3 million at a weighted average stock price of $25.00. We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for restricted stock awards of $217,000 and $184,000, for the three months ended March 31, 2019 and 2020, respectively.

As of March 31, 2020, we had $1.1 million of total unrecognized compensation costs related to unvested restricted stock awards, which are expected to be recognized over a weighted average period of approximately 1.7 years.

Stock Options

During the three months ended March 31, 2020, we did not grant any stock options.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for stock options of $204,000 and $215,000, for the three months ended March 31, 2019 and 2020, respectively.

Performance Awards

During the three months ended March 31, 2020, we granted 237,500 performance awards to our leadership team and certain key employees, payable in shares. These awards will vest (if at all) during 2024, provided that certain criteria surrounding our common stock price is achieved and the employee has remained continuously employed with the Company through such date. The fair value of these performance awards was $2.8 million and was determined by using the Monte-Carlo simulation pricing model with the following assumptions:



	February 19, 2020
Performance period	February 19, 2020 - December 31, 2024
Simulation period (years)	4.87
Share price at grant date	$25.00
Expected volatility	27.73	%
Risk-free interest rate	1.41	%

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for performance awards of $19,000 and $121,000 for the three months ended March 31, 2019 and 2020, respectively.

See Note 19 to the Consolidated Financial Statements herein for additional information related to our performance awards.

Employee Stock Purchase Plan

During the three months ended March 31, 2020, employees purchased a total of 26,294 shares at a weighted average price of $13.73 per share. The fair value of the right (option) to purchase shares under the ESPP is estimated at the date of purchase with the four quarterly purchase dates using the following assumptions:



	2020
Dividend yield	0.01	%
Expected volatility	48.63	%
Risk-free interest rate	1.54%,1.57%,1.57%,1.56%
Expected life (years)	0.25, 0.50, 0.75, 1.00

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for the ESPP totaling $105,000 and $163,000 for the three months ended March 31, 2019 and 2020, respectively.

Good to Great Incentive Program

During the three months ended March 31, 2020, we issued 17,991 shares of our common stock to certain employees, which were valued at approximately $449,000 at a grant date stock price of $25.00.

Non-Employee Director Compensation

We compensate our non-employee directors through cash payments or unrestricted shares of common stock, payable in quarterly installments, as elected by the non-employee director. On February 19, 2020, our Board of Directors (the “Board”) revised the Director Compensation Policy to provide that each independent director is entitled to a quarterly retainer of $35,000, payable at the end of the quarter. Committee Chairs and Lead Director payments remain unchanged.

For the three months ended March 31, 2020, we granted an aggregate of 8,821 shares of our common stock to five of our non-employee directors, which were valued at $0.1 million at a weighted average stock price of $16.15.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, related to annual retainers and common stock awards of $114,000 and $201,000 for the three months ended March 31, 2019 and 2020, respectively.

See Note 19 to the Consolidated Financial Statements herein for additional information related to our Director Compensation Policy.

Share Repurchase

During the three months ended March 31, 2020, we did not repurchase any shares of our common stock pursuant to our share repurchase program. At March 31, 2020, we had approximately $25.6 million available for repurchases under our share repurchase program.

Cash Dividends

During the three months ended March 31, 2019 and 2020, our Board declared the following dividends payable on the dates below (in thousands, except per share amounts):



2019	Per Share		Dollar Value
March 1^st	$	0.075	$	1,360

2020	Per Share		Dollar Value
March 1^st	$	0.075	$	1,339

Accumulated other comprehensive income

Our components of accumulated other comprehensive income are as follows (in thousands):



	Accumulated Other Comprehensive Income
Balance at December 31, 2019	$	—
Net unrealized losses associated with available-for-sale securities of the trusts	(45,104		)
Reclassification of net unrealized losses activity attributable to the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus	45,104
Balance at March 31, 2020	$	—