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Stock Based Compensation | 3 Months Ended
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Mar. 31, 2021
Share-based Payment Arrangement [Abstract] |
Stock Based Compensation | Stock Based Compensation In May 2017, the Company’s stockholders approved the 2017 Plan, with such stockholder action resulting in the termination of the Company’s 2010 Stock Incentive Plan (the “2010 Plan”). In June 2019, the Company's stockholders approved an amendment to the 2017 Plan to increase the shares reserved under the 2017 Plan by 7,600,000 shares of common stock. The terms of the 2017 Plan are substantially the same as the 2010 Plan. At March 31, 2021, there were no common shares of non-vested restricted stock outstanding under the 2010 Plan. Pursuant to the 2017 Plan, eligible employees, officers and directors of the Company are offered the opportunity to acquire the Company's common stock through equity awards under the 2017 Plan. The maximum number of shares that may be issued under the 2017 Plan is 13,170,000. Of the common stock authorized at March 31, 2021, 1,060,701 shares remain available for issuance under the 2017 Plan. The Company’s non-employee directors have been issued 507,821 shares under the 2017 Plan as of March 31, 2021. The Company’s employees have been issued 2,810,829 shares of restricted stock under the 2017 Plan as of March 31, 2021. At March 31, 2021, there were 1,994,972 shares of non-vested restricted stock outstanding, 6,592,874 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan and 1,076,447 common shares reserved for issuance in connection with outstanding RSUs under the 2017 Plan. Of the common stock authorized at December 31, 2020, 5,540,536 shares were reserved for issuance under the 2017 Plan. The Company's non-employee directors had been issued 507,821 shares under the 2017 Plan as of December 31, 2020. The Company’s employees had been issued 1,881,380 shares of restricted stock under the 2017 Plan as of December 31, 2020. At December 31, 2020, there were 1,603,766 shares of non-vested restricted stock outstanding, 4,798,517 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan and 441,746 common shares reserved for issuance in connection with outstanding RSUs under the 2017 Plan. (a) Restricted Common Stock Awards During the three months ended March 31, 2021 and 2020, the Company recognized non-cash compensation expense on its restricted common stock awards of $1.1 million and $0.9 million, respectively. Dividends are paid on all restricted common stock issued, whether those shares have vested or not. Non-vested restricted stock is forfeited upon the recipient's termination of employment, subject to certain exceptions. There were forfeitures of 9,997 shares for the three months ended March 31, 2021. There were no forfeitures of shares for the three months ended March 31, 2020. A summary of the activity of the Company's non-vested restricted stock collectively under the 2010 Plan and 2017 Plan for the three months ended March 31, 2021 and 2020, respectively, is presented below:
| 2021 |  | 2020
| Number of Non-vested Restricted Shares |  | Weighted Average Per Share Grant Date Fair Value (1) |  | Number of Non-vested Restricted Shares |  | Weighted Average Per Share Grant Date Fair Value (1)
Non-vested shares as of January 1 | 1,603,766 |  |  | $ | 6.27 |  |  | 837,123 |  |  | $ | 6.18 |
Granted | 939,446 |  |  | 3.82 |  |  | 1,054,254 |  |  | 6.33 |
Vested | (538,243) |  |  | 6.24 |  |  | (287,611) |  |  | 6.22 |
Forfeited | (9,997) |  |  | 6.33 |  |  | — |  |  | — |
Non-vested shares as of March 31 | 1,994,972 |  |  | $ | 5.12 |  |  | 1,603,766 |  |  | $ | 6.27 |
Restricted stock granted during the period | 939,446 |  |  | $ | 3.82 |  |  | 1,054,254 |  |  | $ | 6.33 |
(1)The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. At March 31, 2021 and 2020, the Company had unrecognized compensation expense of $8.4 million and $8.9 million, respectively, related to the non-vested shares of restricted common stock under the 2017 Plan and 2010 Plan, collectively. The unrecognized compensation expense at March 31, 2021 is expected to be recognized over a weighted average period of 2.1 years. The total fair value of restricted shares vested during the three months ended March 31, 2021 and 2020 was approximately $2.1 million and $1.8 million, respectively. The requisite service period for restricted stock awards at issuance is three years and the restricted common stock either vests ratably over the requisite service period or at the end of the requisite service period. (b) Performance Share Units During the three months ended March 31, 2021 and 2020, the Company granted PSUs that had been approved by the Compensation Committee and the Board of Directors. Each PSU represents an unfunded promise to receive one share of the Company's common stock once the performance condition has been satisfied. The awards were issued pursuant to and are consistent with the terms and conditions of the 2017 Plan. The PSU awards are subject to performance-based vesting under the 2017 Plan pursuant to the PSU award agreements ("PSU Agreements"). Vesting of the PSUs will occur at the end of three years based on the following: •If three-year TSR performance relative to the Company's identified performance peer group (the "Relative TSR") is less than the 30 th percentile, then 0% of the target PSUs will vest; •If three-year Relative TSR performance is equal to the 30 th percentile, then the Threshold % (as defined in the individual PSU Agreements) of the target PSUs will vest; •If three-year Relative TSR performance is equal to the 50 th percentile, then 100% of the target PSUs will vest; and •If three-year Relative TSR performance is greater than or equal to the 80 th percentile, then the Maximum % (as defined in the individual PSU Agreements) of the target PSUs will vest. The percentage of target PSUs that vest for performance between the 30 th, 50 th, and 80 th percentiles will be calculated using linear interpolation. TSR for the Company and each member of the peer group will be determined by dividing (i) the sum of the cumulative amount of such entity’s dividends per share for the performance period and the arithmetic average per share volume weighted average price (the “VWAP”) of such entity’s common stock for the last thirty (30) consecutive trading days of the performance period minus the arithmetic average per share VWAP of such entity’s common stock for the last thirty (30) consecutive trading days immediately prior to the performance period by (ii) the arithmetic average per share VWAP of such entity’s common stock for the last thirty (30) consecutive trading days immediately prior to the performance period. The grant date fair value of the PSUs was determined through a Monte-Carlo simulation of the Company’s common stock total shareholder return and the common stock total shareholder return of its identified performance peer companies to determine the Relative TSR of the Company’s common stock over a future period of three years. For PSUs granted, the inputs used by the model to determine the fair value are (i) historical stock price volatilities of the Company and its identified performance peer companies over the most recent three year period and correlation between each company's stock and the identified performance peer group over the same time series and (ii) a risk free rate for the period interpolated from the U.S. Treasury yield curve on grant date. The PSUs granted during the three months ended March 31, 2021 and 2020 include DERs which shall remain outstanding from the grant date until the earlier of the settlement or forfeiture of the PSU to which the DER corresponds. Each vested DER entitles the holder to receive payments in an amount equal to any dividends paid by the Company in respect of the share of the Company’s common stock underlying the PSU to which such DER relates. Upon vesting of the PSUs, the DER will also vest. DERs will be forfeited upon forfeiture of the corresponding PSUs. The DERs may be settled in cash or stock at the discretion of the Compensation Committee. A summary of the activity of the target PSU awards under the 2017 Plan for the three months ended March 31, 2021 and 2020, respectively, is presented below:
| 2021 |  | 2020
| Number of Non-vested Target Shares |  | Weighted Average Per Share Grant Date Fair Value (1) |  | Number of Non-vested Target Shares |  | Weighted Average Per Share Grant Date Fair Value (1)
Non-vested target PSUs as of January 1 | 2,902,014 |  |  | $ | 4.98 |  |  | 2,018,518 |  |  | $ | 4.09 |
Granted | 1,563,910 |  |  | 5.49 |  |  | 883,496 |  |  | 7.03 |
Vested | (842,792) |  |  | 4.20 |  |  | — |  |  | — |
Non-vested target PSUs as of March 31 | 3,623,132 |  |  | $ | 5.38 |  |  | 2,902,014 |  |  | $ | 4.98 |
(1)The grant date fair value of the PSUs was determined through a Monte-Carlo simulation of the Company’s common stock total shareholder return and the common stock total shareholder return of its identified performance peer companies to determine the Relative TSR of the Company’s common stock over a future period of three years. The three-year performance period for PSUs granted in 2018 ended on December 31, 2020, resulting in the vesting of 974,074 shares of common stock during the three months ended March 31, 2021 with a fair value of $3.7 million on the vesting date. As of March 31, 2021 and 2020, there was $12.9 million and $9.5 million of unrecognized compensation cost related to the non-vested portion of the PSUs, respectively. The unrecognized compensation cost related to the non-vested portion of the PSUs at March 31, 2021 is expected to be recognized over a weighted average period of 2.3 years. Compensation expense related to the PSUs was $1.4 million and $1.2 million for the three months ended March 31, 2021 and 2020, respectively. Restricted Stock Units During the three months ended March 31, 2021 and 2020, the Company granted RSUs that had been approved by the Compensation Committee and the Board of Directors. Each RSU represents an unfunded promise to receive one share of the Company's common stock upon satisfaction of the vesting provisions. The awards were issued pursuant to and are consistent with the terms and conditions of the 2017 Plan. The requisite service period for RSUs at issuance is three years and the RSUs vest ratably over the requisite service period. The RSUs granted during the three months ended March 31, 2021 and 2020 include DERs which shall remain outstanding from the grant date until the earlier of the settlement or forfeiture of the RSU to which the DER corresponds. Each vested DER entitles the holder to receive payments in an amount equal to any dividends paid by the Company in respect of the share of the Company’s common stock underlying the RSU to which such DER relates. Upon vesting of the RSUs, the DER will also vest. DERs will be forfeited upon forfeiture of the corresponding RSUs. The DERs may be settled in cash or stock at the discretion of the Compensation Committee. A summary of the activity of the RSU awards under the 2017 Plan for the three months ended March 31, 2021 and 2020 is presented below:
|  | 2021 |  | 2020 |  |
|  | Number of Non-vested Shares |  | Weighted Average Per Share Grant Date Fair Value (1) |  | Number of Non-vested Shares |  | Weighted Average Per Share Grant Date Fair Value (1) |  |  |  |
Non-vested RSUs as of January 1 |  | 441,746 |  |  | $ | 6.23 |  |  | — |  |  | $ | — |  |  |  |  |
Granted |  | 781,955 |  |  | 3.69 |  |  | 441,746 |  |  | 6.23 |  |  |  |  |
Vested |  | (147,254) |  |  | 6.23 |  |  | — |  |  | — |  |  |  |  |
Non-vested RSUs as of March 31 |  | 1,076,447 |  |  | $ | 4.38 |  |  | 441,746 |  |  | $ | 6.23 |  |  |  |  |
(1)The grant date fair value of RSUs is based on the closing market price of the Company’s common stock at the grant date. During the three months ended March 31, 2021, 147,254 shares of common stock were issued in connection with the vesting of RSUs at a fair value of $0.5 million on the vesting date.As of March 31, 2021 and 2020, there was $4.3 million and $2.5 million of unrecognized compensation cost related to the non-vested portion of the RSUs, respectively. The unrecognized compensation cost related to the non-vested portion of the RSUs at March 31, 2021 is expected to be recognized over a weighted average period of 2.4 years. Compensation expense related to the RSUs was $0.4 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively.

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