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Stock Based Compensation | 3 Months Ended
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Mar. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation | 19. Stock Based Compensation Pursuant to the 2017 Plan, as approved by the Company's stockholders, eligible employees, officers and directors of the Company and individuals who provide services to 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 10,792,500. Of the common stock authorized at March 31, 2024, 6,161,318 shares remain available for issuance under the 2017 Plan. The Company’s non-employee directors have been issued 301,472 shares under the 2017 Plan as of March 31, 2024. The Company’s employees have been issued 1,543,880 shares of restricted stock under the 2017 Plan as of March 31, 2024. At March 31, 2024, there were 616,752 shares of non-vested restricted stock outstanding, 1,109,884 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan and 194,211 common shares reserved for issuance in connection with outstanding RSUs under the 2017 Plan. Of the common stock authorized at December 31, 2023, 6,249,922 shares were reserved for issuance under the 2017 Plan. The Company's non-employee directors had been issued 301,472 shares under the 2017 Plan as of December 31, 2023. The Company’s employees had been issued 1,204,781 shares of restricted stock under the 2017 Plan as of December 31, 2023. At December 31, 2023, there were 524,570 shares of non-vested restricted stock outstanding, 1,802,352 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan and 351,974 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, 2024 and 2023, the Company recognized non-cash compensation expense on its restricted common stock awards of $0.9 million and $1.0 million, respectively. Dividends are paid on all restricted 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. A summary of the activity of the Company's non-vested restricted stock under the 2017 Plan for the three months ended March 31, 2024 and 2023, respectively, is presented below:
| 2024 |  | 2023
| 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 | 524,570 |  |  | $ | 13.57 |  |  | 526,074 |  |  | $ | 16.34 |
Granted | 342,628 |  |  | 8.23 |  |  | 275,248 |  |  | 12.36 |
Vested | (246,917) |  |  | 13.90 |  |  | (244,015) |  |  | 18.18 |
Forfeited | (3,529) |  |  | 11.33 |  |  | (6,771) |  |  | 13.04 |
Non-vested shares as of March 31 | 616,752 |  |  | $ | 10.45 |  |  | 550,536 |  |  | $ | 13.57 |
Restricted stock granted during the period | 342,628 |  |  | $ | 8.23 |  |  | 275,248 |  |  | $ | 12.36 |
(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, 2024 and 2023, the Company had unrecognized compensation expense of $5.8 million and $6.8 million, respectively, related to the non-vested shares of restricted common stock under the 2017 Plan. The unrecognized compensation expense at March 31, 2024 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, 2024 and 2023 was approximately $2.1 million and $3.0 million, respectively. The requisite service period for restricted stock awards at issuance is three years and the restricted common stock vests ratably over the requisite service period. (b) Performance Share Units Under the 2017 Plan, PSUs are instruments that provide the holder the right to receive one share of the Company's common stock once a performance condition has been satisfied. The awards were issued pursuant to and are consistent with the terms and conditions of the 2017 Plan. 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 total shareholder return 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 include dividend equivalent rights ("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. The DERs that vested during the three months ended March 31, 2024 and 2023 were settled in cash. A summary of the activity of the target PSU awards under the 2017 Plan for the three months ended March 31, 2024 and 2023, respectively, is presented below:
| 2024 |  | 2023
| 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 | 905,825 |  |  | $ | 18.12 |  |  | 786,577 |  |  | $ | 23.06 |
Vested | (350,886) |  |  | 22.31 |  |  | (201,978) |  |  | 28.18 |
Non-vested target PSUs as of March 31 | 554,939 |  |  | $ | 15.47 |  |  | 584,599 |  |  | $ | 21.29 |
(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 total shareholder return of the Company’s common stock over a future period of three years. The three-year performance period for PSUs granted in 2021 ended on December 31, 2023, resulting in the vesting of 441,973 shares of common stock during the three months ended March 31, 2024 with a fair value of $3.6 million on the vesting date. The number of vested shares related to PSUs granted in 2021 was greater than the target PSUs of 350,886. The three-year performance period for PSUs granted in 2020 ended on December 31, 2022, resulting in the vesting of 161,577 shares of common stock during the three months ended March 31, 2023 with a fair value of $2.0 million on the vesting date. The number of vested shares related to PSUs granted in 2020 was less than the target PSUs of 201,978. Non-vested PSUs are forfeited upon the recipient's termination of employment, subject to certain exceptions. As of March 31, 2024 and 2023, there was $4.1 million and $4.6 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, 2024 is expected to be recognized over a weighted average period of 1.5 years. Compensation expense related to the PSUs was $0.8 million and $1.1 million for the three months ended March 31, 2024 and 2023, respectively. (c) Restricted Stock Units Under the 2017 Plan, 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 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. The DERs that vested during the three months ended March 31, 2024 and 2023 were settled in cash. A summary of the activity of the RSU awards under the 2017 Plan for the three months ended March 31, 2024 and 2023, respectively, is presented below:
|  | 2024 |  | 2023 |  |
|  | 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 |  | 351,974 |  |  | $ | 11.65 |  |  | 263,708 |  |  | $ | 16.11 |  |  |  |  |
Vested |  | (157,763) |  |  | 12.45 |  |  | (131,094) |  |  | 17.40 |  |  |  |  |
Forfeited |  | — |  |  | — |  |  | (13,550) |  |  | 14.76 |  |  |  |  |
Non-vested RSUs as of March 31 |  | 194,211 |  |  | $ | 10.99 |  |  | 119,064 |  |  | $ | 14.83 |  |  |  |  |
(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, 2024, 157,763 shares of common stock were issued in connection with the vesting of RSUs at a fair value of $1.3 million on the vesting date. During the three months ended March 31, 2023, 131,094 shares of common stock were issued in connection with the vesting of RSUs at a fair value of $1.4 million on the vesting date. Non-vested RSUs are forfeited upon the recipient's termination of employment, subject to certain exceptions. As of March 31, 2024 and 2023, there was $1.8 million and $1.5 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, 2024 is expected to be recognized over a weighted average period of 1.6 years. Compensation expense related to the RSUs was $0.3 million for the three months ended March 31, 2024 and 2023.

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