XML 38 R20.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Stock Based Compensation
 6 Months Ended
Jun. 30, 2011
Stock Based Compensation  
Stock Based Compensation

Note 13 - Stock Based Compensation

 

The Company’s 2009 Incentive Plan, approved by the Company’s stockholders in June 2009, permits the Company to grant stock options, restricted stock and/or performance-based awards to its employees, officers, directors and consultants.  A maximum of 600,000 shares of the Company’s common stock is authorized for issuance pursuant to the 2009 Incentive Plan.

 

The Company’s 2003 Incentive Plan, approved by the Company’s stockholders in June 2003, permitted the Company to grant stock options and restricted stock to its employees, officers, directors and consultants.  A maximum of 275,000 shares of the Company’s common stock was authorized for issuance pursuant to the 2003 Incentive Plan.

 

The restricted stock grants are charged to general and administrative expense over the respective vesting periods based on the market value of the common stock on the grant date. Substantially all restricted stock awards made to date provide for vesting upon the fifth anniversary of the grant date and under certain circumstances may vest earlier. For accounting purposes, the restricted stock is not included in the shares shown as outstanding on the balance sheet until they vest; however dividends are paid on the unvested shares.

 

On September 14, 2010, the Board of Directors approved a Pay-For-Performance Program under the Company’s 2009 Incentive Plan, and awarded 200,000 performance share awards in the form of restricted stock units (the “Units”). The holders of Units are not entitled to dividends or to vote the underlying shares until the Units vest and shares are issued. Accordingly, for accounting purposes, the shares underlying the Units are not included in the shares shown as outstanding on the balance sheet.  If the defined performance criteria are satisfied in full at June 30, 2017, one share of the Company’s common stock will vest and be issued for each Unit outstanding and a pro-rata portion of the Units will vest and be issued if the performance criteria fall between defined ranges.  In the event that the performance criteria are not satisfied in whole or in part at June 30, 2017, the unvested Units will be forfeited and no shares of the Company’s common stock will be issued for those Units.  No Units were granted, vested or forfeited in the six months ended June 30, 2011.

 

Through June 30, 2011, a total of 416,910 and 274,100 stock awards (i.e. restricted shares and restricted stock units) were issued pursuant to the Company’s 2009 and 2003 Incentive Plans, respectively. Under the 2009 Incentive Plan, 183,090 shares remain available for grant. No additional shares may be granted under the 2003 Incentive Plan.  As of June 30, 2011, there were approximately $2,932,000 of total compensation costs related to nonvested awards that have not yet been recognized, including $537,000 related to the Pay-for-Performance Program (net of forfeiture and performance assumptions which are re-evaluated quarterly). These compensation costs will be charged to general and administrative expense over the remaining respective vesting periods. The weighted average vesting period is approximately four years.  As of June 30, 2011, there were no options outstanding under the 2009 and 2003 Incentive Plans.

 

A summary of the activity of the incentive plans follows:

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Restricted share grants

 

—

 

—

 

74,040

 

—

 

Average per share grant price

 

—

 

—

 

$

16.19

 

—

 

Recorded as deferred compensation

 

—

 

—

 

$

1,199,000

 

—

 

 

 

 

 

 

 

 

 

 

 

Non-vested shares:

 

 

 

 

 

 

 

 

 

Non-vested beginning of period

 

348,385

 

357,925

 

320,940

 

357,925

 

Grants

 

—

 

—

 

74,040

 

—

 

Vested during period

 

—

 

(36,050

)

(46,450

)

(36,050

)

Forfeitures

 

—

 

—

 

(145

)

—

 

Non-vested end of period

 

348,385

 

321,875

 

348,385

 

321,875

 

Average per share value of non-vested shares (based on grant price)

 

$

12.96

 

$

13.33

 

$

12.96

 

$

13.33

 

Value of shares vested during the period (based on grant price)

 

$

—

 

$

—

 

$

960,000

 

$

687,000

 

 

 

 

 

 

 

 

 

 

 

Total charge to operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding restricted stock grants

 

$

227,000

 

$

210,000

 

$

476,000

 

$

460,000

 

Outstanding restricted stock units

 

22,000

 

—

 

45,000

 

—

 

 

 

$

249,000

 

$

210,000

 

$

521,000

 

$

460,000