Stock-Based Compensation

9 Months Ended

Oct. 02, 2022

Share-Based Payment Arrangement [Abstract]

For the third quarter of 2022, the Company recognized stock compensation expense of $2.1 million and a related tax benefit of $0.3 million. For the third quarter of 2021, the Company recognized stock compensation expense of $1.2 million and a related tax benefit of $0.2 million. For September year-to-date 2022, the Company recognized stock compensation expense of $5.9 million and a related tax benefit of $0.8 million. For September year-to-date 2021, the Company recognized stock compensation expense of $4.0 million and a related tax benefit of $0.6 million.

Performance Shares

During the first quarter of 2022, the Company granted performance share awards associated with the Company’s Class A common stock to certain senior officers. The payment of performance share awards, which will be satisfied with the issuance of shares out of treasury stock, is contingent upon the achievement of specific revenue growth and earnings before interest, taxes, depreciation and amortization ("EBITDA") margin performance goals ("financial measure performance share awards") over a stated period of time. The maximum number of performance shares that may be earned is 200% of the target shares originally granted. These awards have three one-year performance periods: 2022, 2023 and 2024, with the payout for each performance period based on separate financial measure goals that are set in February of each of the three performance periods. Earned shares during each performance period will cliff vest in February 2025 after approval of the financial results by the Compensation Committee, if not forfeited by the recipient. No dividends are paid on these performance shares.

A summary of the status of all nonvested performance shares at target as of third quarter-end 2022 and year-to-date 2022 changes is presented as follows below (in thousands of shares except per share data). The vesting adjustment in the table below represents the 2019 and a portion of the 2021 financial measure performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout.


	Financial Measure Performance Shares
	Shares	Weighted Average Grant Date Fair Value
Nonvested at year-end 2021	708	$	20.03
Granted	186	21.19
Vested	(48)	22.55
Forfeited	(12)	16.81
Vesting adjustment	(142)	24.45
Nonvested at third quarter-end 2022	692	$	19.41

Restricted Stock

A summary of the status of nonvested restricted stock as of third quarter-end 2022 and year-to-date 2022 changes is presented as follows below (in thousands of shares except per share data). The changes in the table below primarily relate to activity from the first and second quarters of 2022.


	Shares	Weighted Average Grant Date Fair Value
Nonvested at year-end 2021	403	$	21.24
Granted	403	20.34
Vested	(104)	22.44
Forfeited	(91)	21.56
Nonvested at third quarter-end 2022	611	$	20.39