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Stock Based Compensation
3 Months Ended
Mar. 28, 2014
Stock Based Compensation [Abstract]  
Stock Based Compensation

 

9. Stock Based Compensation

During the three months ended March 28, 2014, the Company issued 618,181 restricted stock units at a weighted average grant-date fair value of $5.89 per share. As of March 28, 2014, the Company had 2,223,584 restricted stock units outstanding at a weighted average grant-date fair value of $4.80 per share. As of March 28, 2014, $8.2 million of total restricted stock unit compensation expense related to unvested awards had not been recognized and is expected to be recognized over a weighted average period of approximately 2.6 years.

During the three months ended March 28, 2014, the Company issued 164,474 shares of common stock subject to vesting requirements related to the Technolab acquisition at a weighted average grant-date fair value of $6.04 per share. See Note 7 for further detail. As of March 28, 2014, the Company had 265,474 shares of common stock subject to vesting requirements outstanding at a weighted average grant-date fair value of $7.52 per share. As of March 28, 2014, $1.3 million of compensation expense related to common stock subject to vesting requirements had not been recognized and is expected to be recognized over a weighted average period of approximately 2.9 years. 

On February 8, 2012, the Compensation Committee approved the fiscal year 2012 through 2015 equity compensation target for the Company’s Chief Executive Officer and Chief Operating Officer. Under this target, a single performance-based option grant was made to the Company’s Chief Executive Officer and the Chief Operating Officer of 1,912,500 options and 1,004,063 options, respectively, totaling 2,916,563 options, each with an exercise price of $4.00 and a fair value of $0.96. One-half of the options vest upon the achievement of at least 50% growth of pro forma earnings per share and the remaining half vest upon the achievement of at least 50% pro forma EBITDA growth. Each metric can be achieved at any time during the six-year term of the award based on a trailing twelve month period measured quarterly.

In March of 2013 these performance-based stock option grants were surrendered by the Company’s Chief Executive Officer and Chief Operating Officer and replaced with performance-based SARs, equal to the number of options. The terms and conditions and the specific performance targets applicable to the SARs are the same as those applicable to the replaced options, with the exception that the SARs will be settled in cash, stock or any combination thereof, at the Company’s discretion.

Although the targets for the performance-based SARs have not been achieved as of March 28, 2014, the Company recorded $0.1 million of compensation expense related to these SARs for both quarters ended March 28, 2014 and March 29, 2013.