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Compensation Plans (Notes)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Compensation Plans Compensation Plans
Share-Based Payment Transactions
The Company maintains the shareholder-approved Diamond Hill Investment Group, Inc. 2022 Equity and Cash Incentive Plan (the “2022 Plan”), which authorizes the issuance of 300,000 common shares of DHIL stock in various forms of equity awards.
As of December 31, 2022, there were 292,679 common shares available for grants under the 2022 Plan. Previously, the Company issued equity awards under the Diamond Hill Investment Group, Inc. 2014 Equity and Cash Incentive Plan (the “2014 Plan”). There are no longer any common shares available for issuance under the 2014 Plan, although grants previously made under the 2014 Plan remain issued and outstanding.

Restricted stock grants represent common shares issued and outstanding upon grant subject to vesting restrictions. The Company issues restricted stock grants that cliff vest after five years to all new employees upon hire and additional awards annually to key existing employees in the form of three-year graded vesting stock grants.

Restricted stock grants 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.

Compensation and related costs, excluding deferred compensation expense (benefit) includes expenses related to restricted stock grants of $10.5 million, $7.2 million, and $5.2 million, for the years ended December 31, 2022, 2021, and 2020, respectively.
The following table represents a roll-forward of outstanding restricted stock and related activity for the year ended December 31, 2022:
SharesWeighted-Average
Grant Date Price
per Share
Outstanding Restricted Stock as of December 31, 2021201,170 $165.61 
Grants issued76,143 176.46 
Grants vested(50,597)182.66 
Grants forfeited(7,257)160.33 
Outstanding Restricted Stock as of December 31, 2022219,459 $165.62 
The weighted-average grant date price per share of restricted stock issued during the years ended December 31, 2021 and 2020 was $158.92 and $115.32, respectively. The total fair value of restricted stock vested, as of their respective vesting dates, during the years ended December 31, 2022, 2021, and 2020 was $9.1 million, $5.2 million, and $5.2 million, respectively.
Total deferred equity compensation related to unvested restricted stock grants was $17.0 million as of December 31, 2022. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows:
20232024202520262027ThereafterTotal
$9,263,069 $5,765,571 $1,511,987 $334,795 $135,722 $— $17,011,144 
Employee Stock Purchase Plan
Under the Diamond Hill Investment Group, Inc. Employee Stock Purchase Plan (the “ESPP”), eligible employees may purchase shares of DHIL’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 coinciding with the Company’s fiscal quarters. During the year ended December 31, 2022, ESPP participants purchased 3,392 shares of common stock for $0.5 million and the Company recorded $0.1 million of share-based payment expense related to these purchases. During the year ended December 31, 2021, ESPP participants purchased 4,278 shares of common stock for $0.6 million and the Company recorded $0.1 million of share-based payment expense related to these purchases.
As of December 31, 2022, 92,330 shares of DHIL’s common stock was reserved for future issuance through the ESPP.
Stock Grant Transactions
The following table represents common shares issued as part of the Company’s incentive compensation program during the years ended December 31, 2022, 2021, and 2020:
Shares IssuedGrant Date Value
December 31, 20222,743 $487,870 
December 31, 20213,681 $529,806 
December 31, 202023,640 $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 DHIL stock. Employees become fully vested in the matching contributions after six plan years of employment. The following table summarizes the Company’s expenses attributable to the 401(k) plan during the years ended December 31, 2022, 2021 and 2020:
Shares IssuedShare ContributionsCash ContributionsTotal Company Contributions
December 31, 2022211 $37,313 $2,910,156 $2,947,469 
December 31, 2021506 $87,667 $2,779,641 $2,867,308 
December 31, 202020,976 $2,511,746 — $2,511,746 
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 “DC Plans”). Under the DC Plans, participants may elect to voluntarily defer, for a minimum of five years, certain incentive compensation that the Company then contributes into the DC Plans. Participants are 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 in connection with the DC Plans. Assets held in the DC 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 $30.7 million and $37.3 million as of December 31, 2022 and 2021, respectively.