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Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2020
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans
NOTE 13 – STOCK-BASED COMPENSATION PLANS
The Company grants stock options and stock equivalent units (“SEUs”) from time to time as a long-term performance incentive. In certain cases the grants are subject to performance conditions such as the Company’s stock price. Where performance conditions apply the Monte Carlo simulation model is used to determine the fair values. Otherwise the Black-Scholes model is used to determine the fair values.
Stock option plans
The following table summarizes the transactions of the Company’s stock option plans for the three months ended March 31, 2020:
 
Number
of
Options
 
  
Weighted
Average
Exercise
Price
 
  
Weighted
Average
Grant-
Date Fair
Value
 
Outstanding at December 31, 2019
   
504,459
     $
33.05
     $
41.35
  
Granted – at discount
   
61,678
     $
0.00
     $
77.83
  
– at market value
   
10,419
     $
95.70
     $
18.69
  
Exercised
   
(74,074
 )   $
9.11
     $
52.83
  
Forfeited
   
(10,250
 )   $
13.80
     $
47.17
  
                         
Outstanding at March 31, 2020
   
492,232
     $
34.24
     $
43.59
  
                         
At March 31, 2020, there were 49,444 stock options that were exercisable, of which 12,519 had performance conditions attached.
The stock option compensation cost for the first three months of 2020 was $1.2 million (first three months of 2019 – $1.6 million). The total intrinsic value of options exercised in the first three months of 2020 was $4.2 million (first three months of 2019 – $2.1 million).
The total compensation cost related to non-vested stock options not yet recognized at March 31, 2020 was $11.9 million and this cost is expected to be recognized over the weighted-average period of 2.11 years.
Stock equivalent units
The following table summarizes the transactions of the Company’s SEUs for the three months ended March 31, 2020:
 
Number
of SEUs
 
  
Weighted
Average
Exercise
Price
 
  
Weighted
Average
Grant-
Date Fair
Value
 
Outstanding at December 31, 2019
   
390,816
     $
3.69
     $
59.91
  
Granted – at discount
   
103,607
     $
0.00
     $
77.33
  
– at market value
   
3,634
     $
95.70
     $
18.69
  
Exercised
   
(81,557
 )   $
0.94
     $
60.35
  
Forfeited
   
(9,536
 )   $
1.53
     $
58.85
  
                         
Outstanding at March 31, 2020
   
406,964
     $
4.17
     $
63.92
  
                         
At March 31, 2020 there were 63,196 SEUs that are exercisable, of which 56,664 had performance conditions attached.
The charges for SEUs are spread over the life of the award subject to a revaluation to fair value each quarter. The revaluation may result in a charge or a credit to the income statement in the quarter dependent upon our share price and other performance criteria.
The SEU compensation for the first three months of 2020 was $6.0 million credit (first three months of 2019 – $7.5 million charge). The total intrinsic value of SEUs exercised in the first three months of 2020 was $5.6 million (first three months of 2019 – $6.2 million).
The weighted-average remaining vesting period of non-vested SEUs is 2.39 years.