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 218,000 shares remain available for future grants as of December 31, 2021.

Compensation expense related to deferred stock, restricted stock, and restricted stock units is recognized based on the grant-date fair value of the Company’s common stock, using either the actual share price or an estimated value using the Monte Carlo valuation model. The total stock-based compensation cost included in the Statements of Income was $8.3 million, $6.1 million, and $6.3 million in 2021, 2020, and 2019, respectively.

Stock Options

There were no stock options granted in 2021, 2020, or 2019 and no stock options outstanding at December 31, 2021.

The following table summarizes the stock option activity of the 2007 SIP:

	Shares			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (Years)
Outstanding at December 31, 2018		5,472		$	9.60	$	7.20		0.9
Granted		-			-		-		-
Exercised		(5,472	)		9.60		7.20		-
Canceled		-			-		-		-
Outstanding at December 31, 2019		-			-		-		-
Granted		-			-		-		-
Exercised		-			-		-		-
Canceled		-			-		-		-
Outstanding at December 31, 2020		-			-		-		-
Granted		-			-		-		-
Exercised		-			-		-		-
Canceled		-			-		-		-
Outstanding at December 31, 2021		-			-		-		-
Exercisable Options Outstanding at December 31, 2021		-			-		-		-
Non-Vested Options Outstanding at December 31, 2021		-		$	-	$	—		—

Deferred Stock

Deferred stock awards vest based on the passage of time or the Company’s attainment of performance objectives. Upon vesting, these awards convert one-for-one to common stock.

Table of Contents

In 2021, 5,113 deferred stock awards were issued to non-employee directors that will vest in May 2022 and 6,615 deferred stock awards were issued to non-employee directors that will vest in May 2024.

In 2020, 6,244 deferred stock awards were issued to non-employee directors that vested in May 2021 and 8,078 deferred stock awards were issued to non-employee directors that will vest in May 2023.

In 2019, 6,337 deferred stock awards were issued to non-employee directors that vested in May 2020 and 7,720 deferred stock awards were issued to non-employee directors that will vest in May 2022.

Compensation expense related to these awards is amortized ratably over the vesting period. Compensation expense related to these awards was $0.8 million in 2021, $0.8 million in 2020, and $0.7 in 2019.

At December 31, 2021, there was $0.8 million of unrecognized compensation cost related to deferred stock that is expected to be recognized over a period of three years.

Restricted Stock Units

The Company grants restricted stock units (RSU’s) to senior employees. Some of these RSU’s are retention awards and have only time-based vesting. Other RSU’s have a vesting “double trigger.” The vesting of these RSU’s is dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors, including stock performance relative to industry indices, return on net operating assets, and the passage of time.

During 2021, 82,000 restricted stock units were issued. Compensation costs related to these restricted stock units was $5.6 million, of which $1.6 million was recognized in 2021. The costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

During 2020, 95,000 restricted stock units were issued. Compensation costs related to these restricted stock units was $5.7 million, of which $1.1 million was recognized in 2020. The costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

During 2019, 68,000 restricted stock units were issued. Compensation costs related to these restricted stock units was $3.7 million, of which $1.0 million was recognized in 2019. The costs are being recognized ratably over the remaining periods required before the units vest, which range from 24 to 26 months.

At December 31, 2021, there was $7.1 million of unrecognized compensation cost related to restricted stock units that is expected to be recognized over a period of 2.3 years.