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Stock Compensation Plans | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock Compensation Plans | Stock Compensation Plans The Company has a share-based compensation plan, the OneSpan Inc. 2019 Omnibus Incentive Plan (“Plan”), under which the Board of Directors may grant share-based awards including restricted stock units (RSUs) and performance restricted stock units (PSUs). The Plan may provide performance incentives to employees and non-employee directors, consultants and other key persons of the Company. The plan is administered by the Compensation Committee as appointed by the Board of Directors and is intended to be a non-qualified plan. As of December 31, 2022, the remaining number of shares allowed to be issued under the Plan was 1.9 million shares of the Company’s common stock, representing 4% of the issued and outstanding shares of the Company as of such date. The following table details long-term compensation plan and stock-based compensation expense for the years ended December 31, 2022, 2021, and 2020.
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
(In thousands) |  |  |  |  |
Stock-based compensation | $ | 8,642 |  |  | $ | 4,354 |  |  | $ | 4,740 |
Other long-term incentive plan compensation | 171 |  |  | 848 |  |  | 1,262 |
Total compensation | $ | 8,813 |  |  | $ | 5,202 |  |  | $ | 6,002 |
Time-Based Restricted Stock Awards (sharecounts in thousands) Non-forfeited time-based restricted stock awards granted to certain executive officers and other employees under the VASCO Data Security International, Inc. 2009 Equity Plan became fully vested during the year ended December 31, 2022. Certain shares became subject to forfeiture when the service requirement was not met. Compensation expense was less than $0.1 million, $0.3 million, and $0.7 million for 2022, 2021, and 2020, respectively. Tax benefit related to the compensation expense was less than $0.1 million, $0.1 million, and $0.2 million for 2022, 2021, and 2020, respectively. The following table summarizes the time-based restricted stock activity for the year ended December 31, 2022.
(In thousands) | Shares |  | Weighted- average remaining term (years) |  | Weighted- average grant date fair value
Outstanding at January 1, 2022 | 7 |  | 0.42 |  | $ | 16.23 |
Shares vested | (3) |  |  |  | 16.17 |
Shares forfeited | (4) |  |  |  | 17.75 |
Outstanding at December 31, 2022 | — |  |  | — |  |  | $ | — |
There was no unamortized future compensation expense for time-based restricted stock awards at December 31, 2022. Time-Based Restricted Stock Units (sharecounts in thousands) Under the OneSpan Inc. 2019 Omnibus Incentive Plan, the Company grants certain eligible employees RSUs that settle in Company stock. RSUs granted to non-employee directors vest on the first anniversary date of the grant. Awards granted vest in equal semi-annual installments over one to four years. Shares are subject to forfeiture if the service period is not met. Compensation expense was $6.9 million, $3.7 million, and $2.5 million for 2022, 2021, and 2020, respectively, and the related tax benefit was $0.2 million, $0.1 million, and $0.5 million, respectively. The following table summarizes the time-based restricted stock activity for the year ended December 31, 2022:
(In thousands) | Shares |  | Weighted- average remaining term (years) |  | Weighted- average grant date fair value
Unearned, January 1, 2022 | 559 |  | 3.08 |  | $ | 19.30 |
Shares vested | (308) |  |  |  | 17.19 |
Shares awarded | 2,064 |  |  |  | 11.97 |
Shares forfeited | (245) |  |  |  | 15.06 |
Unearned, December 31, 2022 | 2,070 |  | 2.95 |  | $ | 12.82 |
The unamortized future compensation expense for time-based restricted stock awards was $19.4 million at December 31, 2022. Performance-Based Restricted Stock Units settled in stock (sharecounts in thousands) Performance-based restricted stock units granted to executive officers and certain other employees were subject to achievement of one to three year performance criteria established by the Board of Directors. Under certain grants, earned shares related to one to three-year targets cliff vest upon fulfillment of the performance criteria and completion of the requisite service period and per recommendation of the Compensation Committee of the OneSpan Inc. Board of Directors (“Compensation Committee”). Shares are subject to forfeiture if the performance criteria and service period are not met. The restricted stock units subject to achievement of future performance criteria awarded during the year ended December 31, 2022 will be earned if the performance criteria and service period are met at the end of the one to three year performance period. Compensation expense in 2022, 2021, and 2020 was $1.6 million, $0.3 million, and $1.1 million. Tax benefit related to the compensation expense was less than $0.1 million, $0.1 million, and $0.2 million for 2022, 2021, and 2020, respectively. The following table summarizes activity related to unvested performance restricted stock shares during 2022:
(In thousands) | Total Unvested Shares |  | Weighted- average remaining term (years) |  | Weighted- average grant date fair value
Unearned, January 1, 2022 | 121 |  | 3.29 |  | $ | 17.30 |
Shares vested | (50) |  |  |  | 19.88 |
Shares awarded | 370 |  |  |  | 11.37 |
Shares forfeited | (52) |  |  |  | 13.31 |
Unearned, December 31, 2022 | 389 |  | 2.76 |  | $ | 12.60 |
Unamortized future compensation expense for performance-based restricted stock was $3.1 million at December 31, 2022. Market-Based Restricted Stock Units settled in stock (sharecounts in thousands) Market-based restricted stock units granted to executive officers and certain other employees were subject to achievement of three year market-based performance criteria established by the Board of Directors. Under certain grants, earned shares related to three-year targets cliff vest upon fulfillment of the market-based performance criteria and completion of the three-year period. Shares are subject to forfeiture if the performance criteria and service period are not met. Compensation expense for the years ended December 31, 2022 and 2021 was $0.5 million and less than $0.1 million, respectively, and the related tax benefit was less than $0.1 million and $0 million, respectively. The following table summarizes activity related to unvested market and service restricted stock units settled in stock:
(In thousands) | Shares |  | Weighted- average remaining term (years) |  | Weighted- average grant date fair value
Unearned, January 1, 2022 | 283 |  | 3.43 |  | $ | 19.06 |
Shares awarded | — |  |  |  |  | — |
Shares forfeited | — |  |  |  |  | — |
Unearned, December 31, 2022 | 283 |  | 3.43 |  | $ | 19.06 |
Unamortized future compensation expense for market-based restricted stock was $2.2 million at December 31, 2022.

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