Stock Based Compensation

6 Months Ended

Jun. 30, 2016

Note 14 — Stock Based Compensation

The Company’s 2016 Incentive Plan, approved by the Company’s stockholders in June 2016, permits the Company to grant, among other things, stock options, restricted stock units, performance share awards and dividend equivalent rights and any one or more of the foregoing to its employees, officers, directors and consultants. A maximum of 750,000 shares of the Company’s common stock is authorized for issuance pursuant to this Plan. An aggregate of 805,000 shares of restricted stock and restricted stock units are outstanding under the Company’s 2012 and 2009 equity incentive plans (collectively, the “Prior Plans”) and have not yet vested. No additional awards may be granted under the Prior Plans. 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.

Pursuant to the Pay-for-Performance program, there are 200,000 performance share awards in the form of restricted stock units (the “Units”) outstanding under the Company’s 2009 Incentive Plan. 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. No Units were forfeited or vested during the six months ended June 30, 2016.

The following is a summary of the activity of the equity incentive plans excluding, except as otherwise noted, the 200,000 Units:

	Three Months Ended June 30,			Six Months Ended June 30,
	2016	2015		2016			2015
Restricted share grants	—	—		139,225			129,975
Per share grant price	—	—		$	21.74		$	24.60
Deferred compensation to be recognized over vesting period	—	—		$	3,027,000		$	3,197,000
Number of non-vested shares:
Non-vested beginning of period	605,000	540,285		538,755			480,995
Grants	—	—		139,225			129,975
Vested during period	—	(1,295	)	(72,730		)	(71,980		)
Forfeitures	—	—		(250		)	—

Non-vested end of period	605,000	538,990		605,000			538,990

The following information includes the 200,000 Units:

Average per share value of non-vested shares (based on grant price)	$	18.00	$	17.12	$	18.00	$	17.12

Value of shares vested during the period (based on grant price)	$	—	$	21,000	$	1,177,000	$	607,000

Average value of shares forfeited during the period (based on grant price)	$	—	$	—	$	21.05	$	—

The total charge to operations for all incentive plans is as follows:
Outstanding restricted stock grants	$	641,000	$	555,000	$	1,291,000	$	1,103,000
Outstanding restricted stock units	99,000		30,000		115,000		59,000
Total charge to operations	$	740,000	$	585,000	$	1,406,000	$	1,162,000

As of June 30, 2016, there were approximately $7,417,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $130,000 related to the Units (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 2.3 years.