Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

13. Stock‑Based Compensation

Key employees, outside directors, consultants and advisors of PAG are eligible to receive stock‑based compensation pursuant to the terms of our new 2015 Equity Incentive Plan (the “2015 Plan”) and our expired 2012 Equity Incentive Plan (the “2012 Plan”). Each of these plans allow for the issuance of shares for stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and other awards. The 2015 Plan is a five year plan which allows for up to 4,000,000 awards of which 3,959,566 shares of common stock were available for grant as of December 31, 2015. The 2012 Plan was a three year plan which originally allowed for 2,000,000 awards of which, as of December 31, 2015, no shares were available for grant due to the 2012 Plan’s expiration in 2015; however, outstanding awards granted under this plan will remain subject to the terms of the 2012 Plan. Compensation expense related to these plans was $14.1 million, $12.8 million, and $9.8 million during 2015, 2014, and 2013, respectively.

Restricted Stock

During 2015, 2014, and 2013, we granted 295,148, 314,677, and 448,026 shares, respectively, of restricted common stock and restricted stock units at no cost to participants under the plan. These awards provide the holder voting and dividend rights prior to vesting. The awards are subject to forfeiture and are non‑transferable, which restrictions generally lapse over a four year period from the grant date at a rate of 15%, 15%, 20% and 50% per year. We have determined that the grant date quoted market price of the underlying common stock is the appropriate measure of compensation cost. This cost is amortized as expense over the restriction period. As of December 31, 2015, there was $20.6 million of unrecognized compensation cost related to the restricted stock, which is expected to be recognized over the restricted period.

Presented below is a summary of the status of our restricted stock as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015:


		Weighted Average		Aggregate
	Shares	Grant‑Date Fair Value		Intrinsic‑Value
December 31, 2014	1,102,385	$	30.78
Granted	295,148		47.98
Vested	(376,092)		22.83
Forfeited	(39,706)		37.39
December 31, 2015	981,735	$	32.43	$	41.6