Share-Based Compensation

(a) Restricted Stock

Federated's long-term stock-incentive compensation is provided under the Stock Incentive Plan (the Plan), as amended and subsequently approved by shareholders from time to time. Share-based awards are granted to reward Federated's employees and non-management directors who have contributed to the success of Federated and to provide incentive to increase their efforts on behalf of Federated. Since the Plan's inception, a total of 30.6 million shares of Class B common stock have been authorized for granting share-based awards in the form of restricted stock, stock options or other share-based awards. As of December 31, 2018, 4.3 million shares are available under the Plan.

Share-Based Compensation Expense was $23.9 million, $22.5 million and $22.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. The associated tax benefits recorded in connection with share-based compensation expense were $5.6 million, $8.4 million and $8.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. At December 31, 2018, the maximum remaining unrecognized compensation expense related to share-based awards approximated $75 million which is expected to be recognized over a weighted-average period of approximately 6 years.

Federated's restricted stock awards represent shares of Federated Class B common stock that may be sold by the awardee only once the restrictions lapse, as dictated by the terms of the award. The awards are generally subject to graded vesting schedules that vary in length from three to ten years with a portion of the award vesting each year, as dictated by the terms of the award. For an award with a ten-year vesting period, the restrictions on the vested portion of the award typically lapse on the award's fifth- and tenth-year anniversaries. Certain restricted stock awards granted pursuant to a key employee bonus program have a three-year graded vesting schedule with restrictions lapsing at each vesting date. During these restriction periods, the recipient receives dividends on all shares awarded, regardless of their vesting status.

The following table summarizes activity of non-vested restricted stock awards for the year ended December 31, 2018:



	Restricted Shares		Weighted- Average Grant- Date Fair Value
Non-vested at January 1, 2018	3,978,433			$	24.90
Granted¹	899,269			28.30
Vested	(866,259	)		25.24
Forfeited	(50,883	)		25.54
Non-vested at December 31, 2018	3,960,560			$	25.59

During 2018, Federated awarded 451,769 shares of restricted Federated Class B common stock in connection with a bonus program in which certain key employees received a portion of their bonus in the form of restricted stock under the Plan. This restricted stock, which was granted on the bonus payment date and issued out of treasury, generally vests over a three-year period. Also during 2018, Federated awarded 447,500 shares of restricted Federated Class B common stock to certain key employees. These restricted stock awards generally vest over a ten-year period.

Federated awarded 899,269 shares of restricted Federated Class B common stock with a weighted-average grant-date fair value of $28.30 to employees during 2018; awarded 946,570 shares of restricted Federated Class B common stock with a weighted-average grant-date fair value of $27.20 to employees during 2017; and awarded 943,160 shares of restricted Federated Class B common stock with a weighted-average grant-date fair value of $26.56 to employees during 2016.

The total fair value of restricted stock vested during 2018, 2017 and 2016 was $24.0 million, $23.9 million and $23.9 million, respectively.

(b) Subsidiary Stock Plan

Effective July 2, 2018, Federated established a non-public subsidiary share-based compensation plan for certain employees of that subsidiary. See Note (3) for additional information. Federated recognized compensation expense for this plan of $4.2 million in Compensation and Related expense on the Consolidated Statements of Income for the six months ended December 31, 2018. At December 31, 2018, the remaining unrecognized compensation expense related to these plan awards approximated $36 million which is expected to be recognized over a weighted-average period of 4 years.