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Compensation Plans
 3 Months Ended
Mar. 31, 2022
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 three months ended March 31, 2022:
SharesWeighted-Average
Grant Date Price
per Share
Outstanding restricted stock as of December 31, 2021201,170 $165.61 
Grants issued66,190 176.78 
Grants vested(2,337)147.66 
Grants forfeited(1,321)185.09 
Total outstanding restricted stock as of March 31, 2022263,702 $168.47 
As of March 31, 2022, 111,389 common shares remained available for grants under the 2014 Plan.
Total deferred equity compensation related to unvested restricted stock was $24.5 million as of March 31, 2022. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows:
Nine Months 
 Remaining In		      
20222023202420252026ThereafterTotal
$8,154,950 $9,186,423 $5,734,659 $1,311,147 $87,481 $1,638 $24,476,298 
Employee Stock Purchase Plan
Under the Diamond Hill Investment Group, Inc. Employee Stock Purchase Plan (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 three-month period ended March 31, 2022, ESPP participants purchased 2,335 shares of common stock for $0.4 million, and the Company recorded $0.1 million of share-based payment expense related to these purchases. During the three-month period ended March 31, 2021, ESPP participants purchased 2,583 shares of common stock for $0.3 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 three-month periods ended March 31, 2022, and 2021:
Shares IssuedGrant Date Value
March 31, 20222,743 $487,870 
March 31, 20213,681 $529,806 
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. The Company settles the 401(k) plan matching contributions in cash or common shares of the Company based on the election of the employees.
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 $34.0 million and $37.3 million as of March 31, 2022 and December 31, 2021, respectively.