Compensation Plans

Share-Based Payment Transactions

The Company issues restricted stock units and restricted stock awards (collectively, "Restricted Stock") under its 2014 Equity and Cash Incentive Plan ("2014 Plan"). Restricted stock units represent common shares which may be issued in the future, whereas restricted stock awards represent common shares issued and outstanding upon grant subject to vesting restrictions. The following table represents a roll-forward of outstanding Restricted Stock and related activity during the nine months ended September 30, 2018:



	Shares		Weighted-Average Grant Date Price per Share
Outstanding Restricted Stock as of December 31, 2017	197,900		$	165.60
Grants issued	60,950		201.78
Grants vested	(27,450	)	77.81
Grants forfeited	(20,900	)	196.97
Total Outstanding Restricted Stock as of September 30, 2018	210,500		$	176.75

As of September 30, 2018, there were 296,429 common shares available for awards under the 2014 Plan.

Total deferred equity compensation related to unvested Restricted Stock grants was $22.5 million as of September 30, 2018. Compensation expense related to Restricted Stock grants is calculated based upon the fair market value of the common shares on grant date. The Company's policy is to adjust compensation expense for forfeitures as they occur. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows:



Three Months Remaining In
2018		2019		2020		2021		2022		Thereafter		Total
$	1,850,410	$	6,863,879	$	5,399,940	$	4,087,381	$	3,100,248	$	1,200,348	$	22,502,206

Stock Grant Transactions

The following table represents common shares issued as part of our incentive compensation program during the nine months ended September 30, 2018 and 2017:

Deferred Compensation Plans

The Company offers two deferred compensation plans, the Diamond Hill Fixed Term Deferred Compensation Plan and the Diamond Hill Variable Term Deferred Compensation Plan (collectively the “Plans”). Under the Plans, participants may elect to voluntarily defer, for a minimum of five years, certain incentive compensation, which the Company then contributes into the Plans. Each participant is responsible for designating investment options for assets they contribute, and the distribution paid to each participant reflects any gains or losses on the assets realized while in the Plans. Assets held in the Plans are included in the Company’s investment portfolio, and the associated obligation to participants is included in deferred compensation liability. Assets held in the Plans are recorded at fair value. Deferred compensation liability was $25.4 million and $20.5 million as of September 30, 2018 and December 31, 2017, respectively.

Shares Issued

Grant Date Value

September 30, 2018

September 30, 2017