Stock-based Payments and Director Fees

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-based Payments and Director FeesPursuant to the terms of the Management Agreement, the Company may pay a portion of the base fee to the Manager in shares of its common stock with the number of shares determined based on the average of the closing prices of its common stock on the NYSE on the five business days preceding the date on which the most recent regular quarterly dividend to holders

of its common stock is paid. The Company recognized base management fees to the Manager for the three and six months ended June 30, 2021 of $2.3 million and $4.6 million, respectively, all of which was payable in cash. Comparatively, for the three and six months ended June 30, 2020, the Company recognized base management fees of $2.1 million and $3.9 million, all of which was payable in cash.

In addition, each of the Company’s independent directors received an annual retainer of $100,000, payable quarterly, 40% of which is payable in shares of the Company's common stock using the same valuation method as defined for the stock portion of the management fee payable to the Manager.

The following table sets forth the Company’s stock-based independent director fees ($ in thousands):

Stock-based Director Fees


	For the three months ended June 30,
	2021			2020
	Number of shares	Amount of expense recognized(1)		Number of shares	Amount of expense recognized(1)
Independent director fees	4,025	$	50	5,200	$	40
Totals	4,025	$	50	5,200	$	40


	For the six months ended June 30,
	2021			2020
	Number of shares	Amount of expense recognized(1)		Number of shares	Amount of expense recognized(1)
Independent director fees	7,970	$	100	8,668	$	80
Totals	7,970	$	100	8,668	$	80

(1)All independent director fees are fully expensed in the period in which the relevant service is received by the Company.

Restricted Stock

The Company periodically grants shares of its common stock to employees of its Manager and Servicer. The shares vest over three years, with one-third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the grant date. Grants of restricted stock use grant date fair value of the stock as the basis for measuring the cost of the grant.

Each independent member of the Company's Board of Directors is issued a restricted stock award of 2,000 shares of the Company’s common stock upon joining the Board. Additionally, the Company may issue grants of its shares of common stock from time to time to its directors.

Under the Company’s 2014 Director Equity Plan and 2016 Equity Incentive Plan the Company made grants of restricted stock to its Directors and to employees of its Manager and Servicer as set forth the table below:


	Employee and Service Provider Grants			Director Grants
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
June 30, 2021 outstanding unvested share grants	163,083	$	11.07	8,000	$	12.60
Shares vested	—	—		(8,000)	12.60
Shares forfeited	—	—		—	—
Shares granted	—	—		16,000	12.60
March 31, 2021 outstanding unvested share grants	163,083	$	11.07	—	$	—
Shares vested	—	—		(2,000)	12.00
Shares forfeited	—	—		—	—
Shares granted	—	—		2,000	12.00
December 31, 2020 outstanding unvested share grants	163,083	$	11.07	—	$	—

June 30, 2020 outstanding unvested share grants	114,334	$	13.83	—	$	—
Shares vested	—	—		—	—
Shares forfeited	—	—		—	—
Shares granted	—	—		—	—
March 31, 2020 outstanding unvested share grants	114,334	$	13.83	—	$	—
Shares vested	—	—		—	—
Shares forfeited	—	—		—	—
Shares granted	—	—		—	—
December 31, 2019 outstanding unvested share grants	114,334	$	13.83	—	$	—

The following table presents the expenses for the Company's restricted stock plan for the years ended ($ in thousands):


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Restricted stock grants	$	207	$	174	$	414	$	348
Director grants	118		—		142		—
Total expenses for plan grants	$	325	$	174	$	556	$	348