STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

The Company's equity incentive plan was approved and amended by stockholders on April 27, 2005 and May 20, 2014. The Company is authorized to issue awards up to 2,000,000 shares of common stock.

The following table lists the number of annual RSAs granted and canceled in 2019 and 2018:



	2019	2018
RSAs granted	36,691	47,273
RSAs canceled	17,134	19,742

Officer RSAs granted in 2019 and 2018 vest over 36 months with the first year cliff vesting. Director RSAs generally vest at the end of 12 months. During 2019 and 2018, the RSAs granted were valued at $52.83 and $35.40 per share, respectively, based upon the fair market value of the Company's common stock on the date of grant.

The following table lists the number of performance-based RSUs granted, issued, and canceled in 2019 and 2018:



	2019	2018
RSUs granted	26,473	28,594
RSUs issued	62,726	48,753
RSUs canceled	31,177	24,009

Each award reflects a target number of common shares that may be issued to the award recipient. The 2019 and 2018 awards may be earned upon the completion of a 3-year performance period. Whether RSUs are earned at the end of the performance period will be determined based on the achievement of certain performance objectives set by the Board of Director Compensation

Committee in connection with the issuance of the RSUs. The performance objectives are based on the Company's business plan covering the performance period. The performance objectives include achieving the budgeted return on equity, budgeted investment in utility plant, customer service standards, employee safety standards and water quality standards. Depending on the results achieved during the 3-year performance period, the actual number of shares that a grant recipient receives at the end of the performance period may range from 0% to 200% of the target shares granted, provided that the grantee is continuously employed by the Company through the vesting date. If prior to the vesting date employment is terminated by reason of death, disability or normal retirement, then a pro rata portion of this award will vest. RSUs are not included in diluted shares until earned. The RSUs are recognized as expense ratably over the 3 year performance period using a fair market value of $52.83 per share for the 2019 RSUs and $35.40 per share for the 2018 RSUs based on an estimate of RSUs earned during the performance period.

The Company has recorded compensation costs for the RSAs and RSUs which are included in administrative and general operating expenses in the amount of $6.5 million for 2019 and $3.1 million for 2018 and 2017.