Stock plans


(a)	Long Term Incentive Plan and Short Term Incentive Plan

The Company’s Amended and Restated 2005 Long Term Incentive Plan (“LTIP”) provides for grants to employees of options, stock appreciation rights (“SARs”), restricted shares, restricted share units, performance shares, dividend equivalents or other share-based awards. In addition, the Company may issue restricted share awards or restricted share units in connection with awards issued under its annual Short Term Incentive Plan (“STIP”). The total number of shares reserved for issuance under the LTIP and STIP are 14,976,896 shares of which 1,988,523 shares remain available for issuance at September 30, 2015. The LTIP and STIP are administered by the Compensation Committee of the Board of Directors. No SARs have been granted to date. Grant prices are established at the fair market value of the Company’s common shares at the date of grant.


i.	Options

Options may be exercised for voting common shares upon vesting. Options have a life of 10 years and vest either pro rata or at the end of the required service period from the date of grant. Fair value of the option awards at the date of grant is determined using the Black-Scholes option-pricing model.

Expected volatility is based on stock price volatility of comparable publicly-traded companies. The Company used the simplified method consistent with U.S. GAAP authoritative guidance on stock compensation expenses to estimate expected lives for options granted during the period as historical exercise data was not available and the options met the requirement as set out in the guidance.

The Company has not granted any stock options since September 4, 2009.

There were no share compensation expenses in respect of options recognized for the three and nine months ended September 30, 2015 and 2014.

Activity with respect to options for the nine months ended September 30, 2015 was as follows:



	Options		Weighted Average Grant Date Fair Value		Weighted Average Grant Date Exercise Price
Options outstanding, December 31, 2014	1,160,057		$	7.12	$	17.74
Options exercised	(1,094,656	)	7.09		17.60
Options outstanding, September 30, 2015	65,401		$	7.74	$	20.17

Activity with respect to options for the nine months ended September 30, 2014 was as follows:



	Options		Weighted Average Grant Date Fair Value		Weighted Average Grant Date Exercise Price
Options outstanding, December 31, 2013	1,572,713		$	6.66	$	18.88
Options exercised	(133,385	)	3.81		25.10
Options outstanding, September 30, 2014	1,439,328		$	6.93	$	18.30

At September 30, 2015 and December 31, 2014, there were no unrecognized share compensation expenses in respect of options.


ii.	Restricted share awards

Restricted shares granted under the LTIP and STIP vest either pro rata or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment and transferability. The Company recognized share compensation expenses during the three and nine months ended September 30, 2015 of $9,081 (2014: $8,180) and $26,213 (2014: $23,101), respectively. The expenses represent the proportionate accrual of the fair value of each grant based on the remaining vesting period.

Activity with respect to unvested restricted share awards for the nine months ended September 30, 2015 was as follows:



	Restricted Share Awards		Weighted Average Grant Date Fair Value
Restricted share awards outstanding, December 31, 2014	2,858,711		$	35.81
Restricted share awards granted	706,341		43.58
Restricted share awards vested	(783,704	)	34.40
Restricted share awards forfeited	(52,642	)	38.03
Restricted share awards outstanding, September 30, 2015	2,728,706		$	38.19

Activity with respect to unvested restricted share awards for the nine months ended September 30, 2014 was as follows:



	Restricted Share Awards		Weighted Average Grant Date Fair Value
Restricted share awards outstanding, December 31, 2013	2,684,745		$	33.74
Restricted share awards granted	925,610		37.33
Restricted share awards vested	(769,971	)	31.47
Restricted share awards forfeited	(69,117	)	36.28
Restricted share awards outstanding, September 30, 2014	2,771,267		$	35.50

At September 30, 2015, there were $77,222 (December 31, 2014: $74,670) of total unrecognized share compensation expenses in respect of restricted share awards that are expected to be recognized over a weighted-average period of 2.6 years (December 31, 2014: 2.7 years).


iii.	Restricted share units

Restricted share units under the LTIP and STIP vest either ratably or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment and transferability. The Company recognized share compensation expenses during the three and nine months ended September 30, 2015 of $310 (2014: $269) and $851 (2014: $602), respectively. The expenses represent the proportionate accrual of the fair value of each grant based on the remaining vesting period.

Activity with respect to unvested restricted share units for the nine months ended September 30, 2015 was as follows:



	Restricted Share Units		Weighted Average Grant Date Fair Value
Restricted share units outstanding, December 31, 2014	103,484		$	36.54
Restricted share units granted	28,057		42.91
Restricted share units vested	(19,455	)	34.58
Restricted share units issued in lieu of cash dividends	2,337		37.21
Restricted share units forfeited	(892	)	35.42
Restricted share units outstanding, September 30, 2015	113,531		$	38.47

Activity with respect to unvested restricted share units for the nine months ended September 30, 2014 was as follows:



	Restricted Share Units		Weighted Average Grant Date Fair Value
Restricted share units outstanding, December 31, 2013	66,518		$	33.74
Restricted share units granted	53,025		38.10
Restricted share units vested	(18,325	)	30.71
Restricted share units issued in lieu of cash dividends	1,479		34.19
Restricted share units outstanding, September 30, 2014	102,697		$	36.54

At September 30, 2015, there were $3,085 (December 31, 2014: $2,774) of total unrecognized share compensation expenses in respect of restricted share units that are expected to be recognized over a weighted-average period of 2.8 years (December 31, 2014: 3.1 years).


iv.	Performance share awards

The performance share awards contain a performance based component. The performance component relates to the compounded growth in the Dividend Adjusted Diluted Book Value per Share (“DBVPS”) over a three-year period relative to the Company's peer group. For performance share awards granted during the period, the grant date Diluted Book Value per Share is based on the DBVPS at the end of the most recent financial reporting year. The Dividend Adjusted Performance Period End DBVPS will be the DBVPS three years after the grant date DBVPS. The fair value estimate earns over the requisite attribution period and the estimate will be reassessed at the end of each performance period which will reflect any adjustments in the consolidated statements of comprehensive income in the period in which they are determined.

The Company recognized share compensation expenses during the three and nine months ended September 30, 2015 of $592 (2014: $315) and $1,215 (2014: $549), respectively.

Activity with respect to unvested performance share awards for the nine months ended September 30, 2015 was as follows:



	Performance Share Awards		Weighted Average Grant Date Fair Value
Performance share awards outstanding, December 31, 2014	106,369		$	36.03
Performance share awards granted	81,569		45.03
Performance share awards vested	(15,344	)	31.38
Performance share awards outstanding, September 30, 2015	172,594		$	40.70

Activity with respect to unvested performance share awards for the nine months ended September 30, 2014 was as follows:



	Performance Share Awards		Weighted Average Grant Date Fair Value
Performance share awards outstanding, December 31, 2013	101,820		$	33.56
Performance share awards granted	52,639		37.33
Performance share awards vested	(32,746	)	32.62
Performance share awards conversion adjustment	(15,344	)	$	31.38
Performance share awards outstanding, September 30, 2014	106,369		$	36.03

At September 30, 2015, there were $4,559 (December 31, 2014: $2,232) of total unrecognized share compensation expenses in respect of performance share awards that are expected to be recognized over a weighted-average period of 2.3 years (December 31, 2014: 2.1 years).


(b)	Total share compensation expenses

The breakdown of share compensation expenses by award type for the periods indicated was as follows:



	Three Months Ended				Nine Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Restricted share awards	$	9,081	$	8,180	26,213		23,101
Restricted share units	310		269		851		602
Performance share awards	592		315		1,215		549
Total	$	9,983	$	8,764	$	28,279	$	24,252