STOCK INCENTIVE PLANS

The Company's 2014 Stock Incentive Plan provides for the issuance of up to 3,282,170 shares of common stock to certain employees and the Company's Board of Directors. As of December 31, 2018, 1,290,386 shares were available for future grants under the 2014 Stock Incentive Plan. Shares subject to awards that are forfeited by an employee under the 2014 Stock Incentive Plan become available for future grants under the 2014 Stock Incentive Plan. Distribution of stock awards is made in the form of shares of the Company’s common stock on a one for one basis. Distribution of the shares will normally be made three years from the date of the stock award grant to an employee. Prior to 2016, stock awards for directors were fully vested upon grant. Beginning in 2016, stock awards for directors generally vest one year from the date of the grant. All other stock awards granted under the plans are subject to restrictions as to continuous employment, except in the case of death, permanent disability, retirement or change in control.

Total compensation expense related to stock incentive plans was $19.6 million in 2018, $17.4 million in 2017, and $18.1 million in 2016. As of December 31, 2018, the unrecorded compensation cost for stock awards was $20.1 million and will be recognized over the remaining vesting period for each grant which ranges between 2019 and 2021. The remaining weighted-average life of all stock awards outstanding as of December 31, 2018 was 1.01 years. These awards are considered equity-based awards and are therefore classified as a component of additional paid-in capital.

Cash payments equal to dividends accrued on awards during the vesting period are distributed at the same time as the shares of common stock to which they relate.

Time-Based Stock Awards

The cost of time-based stock awards is based on the fair market value of the Company's common stock on the date of grant and is charged to income on a straight-line basis over the requisite service period. The per share fair value of time-based stock awards granted during the years ended December 31, 2018, 2017 and 2016 was $46.30, $48.10, and $45.56, respectively.

Performance-Based Stock Awards

Grantees of performance-based awards will be eligible to receive shares of the Company's common stock depending upon the Company's total shareholder return, assuming reinvestment of all dividends, relative to the performance of the Company's comparator group over a three-year period. The per share fair value of performance-based awards granted during the years ended December 31, 2018, 2017 and 2016 was $54.10, $53.43, and $48.48, respectively, which the Company determined using a Monte Carlo simulation and the following assumptions:



	2018		2017		2016
Average risk-free interest rate	2.01	%	1.50	%	1.31	%
Expected volatility (Bemis Company, Inc.)	20.0	%	17.7	%	16.3	%

The average risk-free interest rate is based on the three-year U.S. treasury security rate in effect as of the grant date. The expected volatilities were determined using daily historical volatility for the most recent three-year period as of the grant date. In 2019, there was an 87.5 percent payout of 2016 awards, and the balance was forfeited. In 2018, there was a 62.5 percent payout of 2015 awards, and the balance was forfeited. In 2017, there was a 94.7 percent payout of 2014 awards, and the balance was forfeited. In 2016, there was a 93.7 percent payout of 2013 awards, and the balance was forfeited.

The following table summarizes stock awards unit activity for the year ended December 31, 2018:



	Time-Based				Performance-Based
	Weighted-average grant date share value		Stock Awards (in thousands)		Weighted-average grant date share value		Stock Awards (in thousands)
Outstanding units granted at the beginning of the year	$	45.84	566		$	51.35	525
Units granted	46.30		208		54.10		269
Units paid (in shares)	44.92		(271	)	53.14		(57	)
Units forfeited / canceled	46.80		(21	)	52.77		(53	)
Outstanding units granted at the end of the year	46.51		482		52.17		684