Stock-Based Compensation

12 Months Ended

Jun. 30, 2015

Note 10. Stock-Based Compensation

Stock Option Plan

Greene County Bancorp, Inc. has a stock-based compensation plan (the “2008 Option Plan”) which allows the Company to issue up to 180,000 options and stock appreciation rights. In 2008, the Board of Directors granted 164,500 options and stock appreciation rights (in tandem) to buy stock under the 2008 Option Plan at an exercise price of $12.50, the fair value of the stock on that date. These options have a 10-year term and vested over a three year period upon meeting specific earnings performance goals.

A summary of the Company’s stock option activity and related information for its option plans for the years ended June 30, 2015 and 2014 is as follows:

	2015					2014
	Options			Weighted Average Exercise Price Per Share		Options			Weighted Average Exercise Price Per Share
Outstanding at beginning of year		59,435		$	12.50		87,400		$	12.50
Exercised		(11,600	)	$	12.50		(27,965	)	$	12.50
Outstanding at year end		47,835		$	12.50		59,435		$	12.50

Exercisable at year end		47,835		$	12.50		59,435		$	12.50

The following table presents stock options outstanding and exercisable at June 30, 2015:

Options Outstanding and Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
$12.50		47,835		3.25	$	12.50

At June 30, 2015 and 2014, all outstanding shares were fully vested, with no remaining compensation cost to be recognized. There were no stock options granted during the years ended June 30, 2015 or 2014. The total intrinsic value of the options exercised during the year ended June 30, 2015 was approximately $182,000. The total intrinsic value of the options exercised during the year ended June 30, 2014 was approximately $378,000

Phantom Stock Option Plan and Long-term Incentive Plan

The Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long-term Incentive Plan (the “Plan”), was adopted effective July 1, 2011, to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company’s shareholders. Effective July 1, 2014, the Plan was amended to increase the number of phantom stock options available for awards from 900,000 to 1,800,000. The Plan is intended to provide benefits to employees and directors of the Company or any subsidiary as designated by the Compensation Committee of the Board of Directors of the Company (“Committee”). A phantom stock option represents the right to receive a cash payment on the date the award vests. The participant receives an amount equal to the positive difference between the strike price on the grant date and the book value of a share of the Company stock on the determination date, which is the last day of the plan year that is the end of the third plan year after the grant date of the award, unless otherwise specified by the Committee. The strike price will be the price established by the Committee, which will not be less than 100% of the book value of a share on a specified date, as determined under generally accepted accounting principles (GAAP) as of the last day of the quarter ending on or immediately preceding the valuation date with adjustments made, in the sole discretion of the Committee, to exclude accumulated other comprehensive income (loss).

A summary of the Company’s phantom stock option activity and related information for its option plan for the years ended June 30, 2015 and 2014 is as follows:

	2015			2014
Number of options outstanding at beginning of year		665,426			462,464
Options granted		235,380			236,308
Options forfeited		--			(6,840	)
Options paid in cash upon vesting		(272,052	)		(26,506	)
Number of options outstanding at period end		628,754			665,426

The Company paid out $845,000 and $26,900 in cash during the years ended June 30, 2015 and 2014, respectively on options vested. The Company recognized $830,000 and $786,800 in compensation costs related to the Plan during the years ended June 30, 2015 and 2014, respectively. The total liability for the long-term incentive plan was $1.1 million and $1.2 million at June 30, 2015 and 2014, respectively.