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Compensation Plans | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
Compensation Plans | Compensation Plans Share-Based Payment Transactions The Company issues restricted stock grants under the 2014 Equity and Cash Incentive Plan (the "2014 Plan"). Restricted stock grants represent common shares issued and outstanding upon grant subject to vesting restrictions. The Company has historically issued stock grants that cliff vest after five years to all new employees upon hire and as additional grants to key employees on a periodic basis. While the Company currently plans to continue to issue five-year cliff vest grants to new employees, beginning in 2021, the Company also began making new long-term incentive awards to existing employees in the form of three-year graded vesting stock grants. Restricted stock grants issued under the 2014 Plan are valued based upon the fair market value of the common shares on the applicable grant date. The restricted stock grants are recorded as deferred compensation in the equity section of the balance sheet on the grant date and then recognized as compensation expense on a straight-line basis over the vesting period of the respective grant. The Company's policy is to adjust compensation expense for forfeitures as they occur. The following table represents a roll-forward of outstanding restricted stock and related activity for the nine months ended September 30, 2021:
| Shares |  | Weighted-Average Grant Date Price per Share
Outstanding restricted stock as of December 31, 2020 | 183,718 |  |  | $ | 173.80 |
Grants issued | 68,589 |  |  | 158.26 |
Grants vested | (30,580) |  |  | 180.22 |
Grants forfeited | (19,097) |  |  | 170.06 |
Total outstanding restricted stock as of September 30, 2021 | 202,630 |  |  | $ | 165.76 |
As of September 30, 2021, 178,933 common shares remained available for grants under the 2014 Plan. Total deferred equity compensation related to unvested restricted stock was $17.2 million as of September 30, 2021. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows:
Three Months Remaining In |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | Thereafter |  | Total
$ | 2,122,796 |  |  | $ | 7,350,636 |  |  | $ | 5,425,275 |  |  | $ | 1,917,736 |  |  | $ | 340,773 |  |  | $ | 31,167 |  |  | $ | 17,188,383 |
Employee Stock Purchase Plan The Company adopted the Diamond Hill Investment Group, Inc. Employee Stock Purchase Plan (the "ESPP") effective October 27, 2020. Under the ESPP, eligible employees may purchase shares of the Company's common stock at 85% of the fair market value on the last day of each offering period. Each offering period is approximately three months, which coincides with the Company's fiscal quarters. During the nine-month period ended September 30, 2021, ESPP participants purchased 3,568 shares of common stock for $0.5 million and the Company recorded $0.1 million of share-based payment expense related to these purchases. Stock Grant Transactions The following table represents common shares issued as part of the Company's incentive compensation program during the nine-month period ended September 30, 2021, and 2020:
| Shares Issued |  | Grant Date Value
September 30, 2021 | 3,681 |  |  | $ | 529,806 |
September 30, 2020 | 23,640 |  |  | $ | 3,396,359 |
401(k) Plan The Company sponsors a 401(k) plan in which all employees are eligible to participate. Employees may contribute a portion of their compensation subject to certain limits based on federal tax laws. The Company matches employee contributions equal to 250.0% of the first 6.0% of an employee’s compensation contributed to the plan. Since January 1, 2021, the Company has settled the 401(k) plan matching contributions in cash or common shares of the Company based on the election of the employees. Prior to January 1, 2021, the Company made all matching contributions in common shares of the Company. 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 (together, the “Plans”). Under the Plans, participants may elect to voluntarily defer, for a minimum of five years, certain incentive compensation that the Company then contributes into the Plans. Participants are responsible for designating investment options for the assets they contribute, and the distribution paid to each participant reflects any gains or losses on the assets realized in connection with 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. Deferred compensation liability was $34.9 million and $33.2 million as of September 30, 2021 and December 31, 2020, respectively.

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