Note 6 - Stock-based Compensation

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 6 — STOCK-BASED COMPENSATION

In March 2022, the Company granted certain members of its management and employees an aggregate of 513,385 stock appreciation rights ("SARs"), 72,303 restricted stock units ("RSUs") and 19,581 performance stock units ("PSUs") under the Company’s 2018 Incentive Compensation Plan. The exercise price of each SAR was $71.15 which represented the fair market value of the Company’s common stock on the grant date. The SARs will expire in six years from date of grant and the SARs, RSUs and PSUs have vesting periods of between 1 to 4 years from the grant date.

The fair value of each SAR, RSU and PSU on the grant date was $22.31, $69.9 and $75.3, respectively. The Company calculated the fair value of each SAR and RSU on the grant date using the complex lattice, tree-based option-pricing model based on the following assumptions:

Risk-free interest rates	1.3%-1.6	%
Expected life (in years)	2-5.75
Dividend yield	0.67	%
Expected volatility (weighted average)	32.8%-46.1	%