Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

14. 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 2015 Equity Incentive Plan (the “2015 Plan”). This plan allows 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 2,825,133 shares of common stock were available for grant as of December 31, 2018. Compensation expense related to our equity incentive plan was $16.8 million, $16.0 million, and $14.8 million during 2018, 2017, and 2016, respectively.

Restricted Stock

During 2018, 2017, and 2016, we granted 330,048, 320,018, and 316,486 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, 2018, there was $23.8 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, 2018 and 2017, and changes during the year ended December 31, 2018:


		Weighted Average		Aggregate
	Shares	Grant Date Fair Value		Intrinsic Value
December 31, 2017	899,474	$	46.59
Granted	330,048		48.03
Vested	(303,731)		45.48
Forfeited	(13,383)		45.07
December 31, 2018	912,408	$	47.19	$	36.8