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SHARE-BASED COMPENSATION PLAN
 12 Months Ended
Dec. 31, 2016
SHARE-BASED COMPENSATION PLAN [Abstract]  
SHARE-BASED COMPENSATION PLAN
9.
SHARE-BASED COMPENSATION PLAN
 
Equity Incentive Plan 2011

In 2011, the Board of Directors decided to establish an incentive plan involving a maximum of 400,000 restricted shares of which all shares were allocated among the management of the Company and the members of the Board of Directors.
 
On February 23, 2011, at a grant date fair value of $23.88 per share, 326,000 restricted shares were granted with a four-year cliff-vesting period.  On August 5, 2011, at a grant date fair value of $18.05 per share, 74,000 restricted shares were granted with a five-year cliff-vesting period.  The shares are forfeited if the grantee leaves the Company before that time. The holders of the restricted shares are entitled to receive dividends paid in the period as well as voting rights.
 
In 2013 the Board of Directors amended the vesting requirements for 174,000 shares allocated under the 2011 Equity Incentive Plan and the vesting requirements were lifted. The lifting of the vesting requirements was in relation to the acquisition of Scandic American Shipping Ltd. This resulted in $1.1 million being charged to General and Administrative expense in the first quarter of 2013.
 
In 2014 the Company repurchased 10,000 restricted common shares outstanding.
 
In 2015, the Company repurchased from employees who have resigned a total of 33,000 restricted common shares and granted these amongst new employees with a four-year cliff vesting period and various grant date fair values.
 
In 2016, the Company received 13,500 shares from employees who have resigned. The shares are held as treasury shares at December 31, 2016.
 
The compensation expense is recognized on a straight-line basis over the vesting period and is recorded as part of General and Administrative expenses. The total compensation expense related to restricted shares under the plan was $0.4 million, $0.4 million, and $1.1 million for the years ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively.
 
As of December 31, 2016, unrecognized cost related to unvested shares aggregated to $1.5 million, which will be recognized over a weighted period of 2.7 years.
 
The tables below summarize the Company’s restricted stock awards as of December 31, 2016:
 
  
Restricted
shares -
Employees
  
Weighted-
average
grant-date
fair value
- Employees
 
Non-vested at January 1, 2016
  
33,000
  
$
9.84
 
Granted during the year
  
137,665
   
14.65
 
Vested during the year
  
-
   
-
 
Forfeited during the year
  
(13,500
)  
(13.40
)
Non-vested at December 31, 2016
  
157,165
   
13.75