STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

Incentive Compensation Plan

The Company maintains the Hudson Global, Inc. 2009 Incentive Stock and Awards Plan, as amended and restated on April 26, 2012, (the “ISAP”) pursuant to which it can issue equity-based compensation incentives to eligible participants. The ISAP permits the granting of stock options and restricted stock as well as other types of equity-based awards. The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) will establish such conditions as it deems appropriate on the granting or vesting of stock options or restricted stock. While the Company historically granted both stock options and restricted stock to its employees, since 2008 the Company has granted primarily restricted stock to its employees.

The Compensation Committee administers the ISAP and may designate any of the following as a participant under the ISAP: any officer or other employee of the Company or its affiliates or individuals engaged to become an officer or employee, consultants or other independent contractors who provide services to the Company or its affiliates and non-employee directors of the Company. As of March 31, 2013, there were 3,061,385 shares of the Company’s common stock available for future issuance under ISAP.

The Company also maintains the Director Deferred Share Plan (the “Director Plan”) pursuant to which it can issue restricted stock units to its non-employee directors. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock issued under the ISAP upon a director ceasing service as a member of the Board of Directors of the Company.

For the three months ended March 31, 2013 and 2012, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units were as follows: 

	Three Months Ended
	March 31,
	2013		2012
Stock options	$	144	$	245
Restricted stock	480		625
Restricted stock units	50		51
Total	$	674	$	921

Stock Options

As of March 31, 2013, the Company had approximately $302 of unrecognized stock-based compensation expense related to outstanding unvested stock options. The Company expects to recognize that cost over a weighted average service period of 0.98 years.

Changes in the Company’s stock options for the three months ended March 31,2013 and 2012 were as follows: 

	Three Months Ended
	March 31,
	2013				2012
	Number of Options		Weighted Average Exercise Price per Share		Number of Options		Weighted Average Exercise Price per Share
Options outstanding at January 1,	1,238,650		$	11.21	1,396,350		$	11.36
Granted	—		—		—		—
Expired	(12,700	)	13.11		(10,750	)	15.68
Options outstanding at March 31,	1,225,950		11.19		1,385,600		11.33
Options exercisable at March 31,	825,950		$	14.11	973,100		$	13.94

Restricted Stock

As of March 31, 2013, the Company had approximately $685 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock. The Company expects to recognize that cost over a weighted average service period of 1.23 years.

Changes in the Company’s restricted stock for the three months ended March 31, 2013 and 2012 were as follows:

	For The Three Months Ended
	March 31,
	2013				2012
	Number of Shares of Restricted Stock		Weighted Average Grant Date Fair Value		Number of Shares of Restricted Stock		Weighted Average Grant Date Fair Value
Unvested restricted stock at January 1,	1,028,916		$	4.87	1,166,082		$	5.12
Granted	—		—		607,830		4.59
Vested	(300,263	)	5.35		(366,299	)	5.04
Forfeited	(329,460	)	4.59		(100,347	)	5.61
Unvested restricted stock at March 31,	399,193		$	4.73	1,307,266		$	4.86

Restricted Stock Units

 As of March 31, 2013, the Company had approximately $132 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock units. The Company expects to recognize that cost over a weighted average service period of 1.5 years.

Changes in the Company’s restricted stock units for the three months ended March 31, 2013 and 2012 were as follows:

	For The Three Months Ended
	March 31,
	2013			2012
	Number of Shares of Restricted Stock Unit	Weighted Average Grant-Date Fair Value		Number of Shares of Restricted Stock Unit	Weighted Average Grant-Date Fair Value
Unvested restricted stock units at January 1,	100,000	$	5.18	100,000	$	5.18
Granted	—	—		—	—
Vested	—	—		—	—
Unvested restricted stock units at March 31,	100,000	$	5.18	100,000	$	5.18

Defined Contribution Plan and Non-cash Employer-matching contributions

The Company maintains the Hudson Global, Inc. 401(k) Savings Plan (the “401(k) plan”). The 401(k) plan allows eligible employees to contribute up to 15% of their earnings to the 401(k) plan. The Company has the discretion to match employees’ contributions up to 3% of the employees' earnings through a contribution of the Company’s common stock to the 401(k) plan. Vesting of the Company’s contribution occurs over a five-year period. For the three months ended March 31, 2013 and 2012, the Company’s expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows: 

	For The Three Months Ended
	March 31,
($ in thousands, except otherwise stated)	2013		2012
Expense recognized for the 401(k) plan	$	190	$	193
Contributions to satisfy prior years' employer-matching liability
Number of shares of the Company's common stock issued (in thousands)	—		124
Market value per share of the Company's common stock on contribution date (in dollars)	$	—	$	5.35
Non-cash contribution made for employer matching liability	$	—	$	666
Additional cash contribution made for employer-matching liability	$	651	$	—
Total contribution made for employer-matching liability	$	651	$	666