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COMPENSATION PLANS

6 Months Ended

Jun. 29, 2019

Share-based Payment Arrangement [Abstract]

NOTE 10 — 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 461,000 shares remain available for future grants as of June 29, 2019.

Restricted Stock Units

The Company grants performance-based and retention-based restricted stock units to senior employees. 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 81,950 restricted stock units issued during the six months ended June 29, 2019. Total compensation costs related to these restricted stock units are $4.4 million.

Compensation costs related to all outstanding restricted stock units recognized in the statements of income aggregated $1.6 million and $3.2 million for the three and six months ended June 29, 2019, respectively, and $1.5 million and $2.7 million for the three and six months ended June 30, 2018, respectively.

Stock Options

The Company has not issued any stock options since 2010. A summary of changes in options outstanding under the 2007 Stock Incentive Plan is summarized below:

Shares

Weighted

Average

Exercise Price

Grant Date

Fair Value

Outstanding at December 31, 2018

5,472

$9.60

$7.20

Granted

—

—

—

Exercised

—

—

—

Expired

—

—

—

Outstanding at June 29, 2019

5,472

$9.60

$7.20

The aggregate intrinsic value (mean market price at June 29, 2019 less the weighted average exercise price) of options outstanding under the 2007 SIP was approximately $0.3 million.