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COMPENSATION PLANS

9 Months Ended

Sep. 29, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

COMPENSATION PLANS

NOTE 9 - COMPENSATION PLANS

In May 2017, the Company’s shareholders approved the 2017 Stock Incentive Plan (the “2017 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 750,000 shares for issuance under the 2017 SIP, of which 543,000 shares remain available for future grants as of September 29, 2018.

In April 2007, the Company adopted and the shareholders approved the 2007 Stock Incentive Plan (the “2007 SIP”), which had similar provisions as the 2017 SIP. The 2007 SIP plan expired April 24, 2017. The Company had reserved 2,550,000 shares for issuance under the 2007 SIP, of which 2,181,000 shares were issued.

Restricted Stock Units

Beginning in 2009, the Company began granting performance-based and retention-based restricted stock units to senior employees in lieu of incentive stock options. The vesting of the performance-based awards is dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors and a three-year vesting period. The retention-based awards are subject only to the three-year vesting period. There were 184,200 restricted stock units issued during the nine months ended September 29, 2018. Total compensation costs related to these restricted stock units are $8.8 million.

Compensation costs related to all outstanding restricted stock units recognized in the statements of income aggregated $1.6 million and $4.2 million for the three and nine months ended September 29, 2018, respectively, and $1.0 million and $2.6 million for the three and nine months ended September 30, 2017, respectively.

Stock Options

A summary of changes in options outstanding under the 2007 SIP is summarized below:

	Shares	Weighted Average Exercise Price	Grant Date Fair Value
Outstanding at December 31, 2017	11,838	$8.95	$6.69
Granted	-	-	-
Exercised	(4,616)	8.28	6.90
Expired	-	-	-
Outstanding at September 29, 2018	7,222	$9.38	$6.56

The aggregate intrinsic value (mean market price at September 29, 2018 less the weighted average exercise price) of options outstanding under the 2007 SIP was approximately $0.4 million.