Note 10. Stock-Based Compensation

At June 30, 2016, Greene County Bancorp, Inc. had two stock-based compensation plans, which are described below. All share and per share data has been restated in all periods presented to reflect the 2-for-1 stock split, which was paid on March 15, 2016, as if the new share options had been granted at the same time as the original share options.

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 360,000 options and stock appreciation rights. In 2008, the Board of Directors granted 329,000 options and stock appreciation rights (in tandem) to buy stock under the 2008 Option Plan at an exercise price of $6.25, 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, 2016 and 2015 is as follows:

	2016					2015
	Options			Weighted Average Exercise Price Per Share		Options			Weighted Average Exercise Price Per Share
Outstanding at beginning of year		95,670		$	6.25		118,870		$	6.25
Exercised		(30,900	)	$	6.25		(23,200	)	$	6.25
Outstanding at year end		64,770		$	6.25		95,670		$	6.25

Exercisable at year end		64,770		$	6.25		95,670		$	6.25

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
$6.25		64,770		2.25	$	6.25

At June 30, 2016 and 2015, 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, 2016 or 2015. The total intrinsic value of the options exercised during the year ended June 30, 2016 was approximately $339,000. The total intrinsic value of the options exercised during the year ended June 30, 2015 was approximately $182,000

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. Effective March 15, 2016, the Plan was amended to increase the number of phantom stock options available for awards to 3,600,000 as a result of the 2-for-1 stock split. 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, 2016 and 2015 is as follows:

	2016			2015
Number of options outstanding at beginning of year		1,257,508			1,330,852
Options granted		493,760			470,760
Options forfeited		(1,000	)		--
Options paid in cash upon vesting		(396,714	)		(544,104	)
Number of options outstanding at period end		1,353,554			1,257,508

The Company paid out $710,500 and $845,000 in cash during the years ended June 30, 2016 and 2015, respectively on options vested. The Company recognized $1.0 million and $830,000 in compensation costs related to the Plan during the years ended June 30, 2016 and 2015, respectively. The total liability for the long-term incentive plan was $1.4 million and $1.1 million at June 30, 2016 and 2015, respectively, and is included in accrued expenses and other liabilities.