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Stock Based Compensation
 3 Months Ended
Mar. 31, 2017
Stock Based Compensation  
Stock Based Compensation

 

Note 12 — Stock Based Compensation

 

The Company’s 2016 Incentive Plan (‘‘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, of which 140,000 shares were outstanding as of March 31, 2017, none of which have yet vested.

 

Under the Company’s 2012 and 2009 equity incentive plans, an aggregate of 686,400 shares of restricted stock and restricted stock units are outstanding as of March 31, 2017, none of which have yet vested. No additional awards may be granted under these 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. 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. All unvested restricted stock awards provide for vesting upon the fifth anniversary of the date of grant, and under certain circumstances may vest earlier.

 

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 financial statement 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 three months ended March 31, 2017.

 

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
March 31,

 

 

 

2017

 

2016

 

Restricted stock grants

 
140,100

 
139,225

 

Per share grant price

 

$
24.75

 

$
21.74

 

Deferred compensation to be recognized over vesting period

 

$
3,467,000

 

$
3,027,000

 

 

 

 

 

 

 

Number of non-vested shares:

 

 

 

 

 

Non-vested beginning of period

 
591,750

 
538,755

 

Grants

 
140,100

 
139,225

 

Vested during period

 
(104,950

)
(72,730

)

Forfeitures

 
(500

)
(250

)

 

 

 

 

 

 

Non-vested end of period

 
626,400

 
605,000

 

 

 

 

 

 

 

 

The following information includes the 200,000 Units:

 

 

 

 

 

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

 

$
19.25

 

$
18.00

 

 

 

 

 

 

 

 

 

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

 

$
1,760,000

 

$
1,177,000

 

 

 

 

 

 

 

 

 

Average per share value of shares forfeited during the period (based on grant price)

 

$
22.64

 

$
21.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The total charge to operations for all incentive plans is as follows:

 

 

 

 

 

Outstanding restricted stock grants

 

$
693,900

 

$
649,500

 

Outstanding restricted stock units

 
48,300

 
16,200

 

 

 

 

 

 

 

Total charge to operations

 

$
742,200

 

$
665,700

 

 

 

 

 

 

 

 

 

 

As of March 31, 2017, there were approximately $8,499,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $37,000 related to the Units.  Assumptions relating to the performance metrics relating to the Units (see Note 3) 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 2.9 years for the restricted stock and three months for the Units - the seven year performance cycle for the Units will be completed on June 30, 2017.