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COMPENSATION PLANS
 6 Months Ended
Jun. 28, 2014
COMPENSATION PLANS [Abstract]  
COMPENSATION PLANS

NOTE 8 - COMPENSATION PLANS

 

In April 2007, the Company adopted and the shareholders approved the 2007 Stock Incentive Plan (the “2007 SIP”) under which employees, independent contractors, and non-employee directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require the satisfaction of performance objectives.  Vesting requirements are determined by the Compensation Committee of the Board of Directors.  The Company has reserved 2,550,000 shares for issuance under the 2007 SIP, of which 698,000 shares remain available for future grants as of June 28, 2014.

 

Compensation costs related to all share-based payments recognized in the statements of operations aggregated $1.5 million and $2.8 million for the three and six months ended June 28, 2014, respectively, and $1.3 million and $2.7 million for the three and six months ended June 29, 2013, respectively.

 

Stock Options

 

A summary of changes in options outstanding under the plans is summarized below:

 

    Shares     Weighted
Average
Exercise
Price		     Grant Date
Fair Value		  
Outstanding at December 31, 2013     57,221     $ 8.66     $ 6.65  
Granted     -       -       -  
Exercised     (16,244 )   $ 8.25     $ 7.54  
Expired     -       -       -  
Outstanding at June 28, 2014     40,977     $ 8.82     $ 6.29  

 

The aggregate intrinsic value (mean market price at June 28, 2014 less the weighted average exercise price) of options outstanding under the plans was approximately $2.0 million.

 

Restricted Stock Units

 

Beginning in the second quarter of 2009, the Company began granting restricted stock units to senior employees in lieu of incentive stock options. The vesting of these awards is dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors.  Beginning in 2011, a three year vesting period was added to the performance criteria, which had the effect of requiring both the achievement of the corporate performance objectives and the satisfaction of the vesting period. 

 

There were 6,568 and 65,908 restricted stock units issued during the three and six months ended June 28, 2014.  Total compensation costs related to these restricted stock units are $4.2 million. These costs are being recognized ratably over the vesting period of three years. Total compensation cost related to restricted stock units was $1.5 million and $2.8 million for the three and six months ended June 28, 2014, respectively, and $1.3 million and $2.5 million for the three and six months ended June 29, 2013, respectively.