Compensation Related Costs, Share Based Payments

9 Months Ended

Sep. 30, 2021

Share-Based Payment Arrangement [Abstract]

Share-based Payment Arrangement

SHARE-BASED COMPENSATION

Share-Based Award Activity

During the nine months ended September 30, 2022, the Company granted stock awards (“SAs”) under its 2014 Omnibus Equity Incentive Plan to executive officers (“EOs”) and restricted stock awards (“RSAs”) to non-employee members of the Board of Directors (“BOD”). The SAs granted to the EOs were 100% vested and non-forfeitable on the grant date. Some members of the BOD also elected to defer up to 100% of their annual retainer fee in the form of RSAs. The RSAs granted to the BOD will become fully vested on the earlier of (i) the first anniversary of the date of grant of the shares of restricted common stock or (ii) the date of the Company’s 2023 Annual Meeting of Stockholders. The fair value of the SAs granted to EOs and RSAs granted to non-employee members of the BOD were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. The Company withheld 46,415 shares of common stock from EOs, at a total cost of $1.1 million, to satisfy statutory minimum tax requirements upon grant of the SAs.

2021 Employee Stock Awards

On March 1, 2021, the Board approved an incentive program for eligible employees to participate in the Company’s new Employee Performance Based Restricted Stock Awards Plan (the “PBRS Award Plan”). This plan is being offered pursuant to the Company’s 2014 Omnibus Equity Incentive Plan. The Company incurred de minimis share-based compensation expense related to the 2022 awards during the three months ended September 30, 2022 and 2021. The Company incurred de minimis and $0.1 million share-based compensation expense during the nine months ended September 30, 2022 and 2021, respectively.

2022 Employee Stock Awards

On March 1, 2022, the Board approved the issuance of restricted stock awards for eligible employees in accordance with the PBRS Award Plan. The Company incurred $0.1 million and $0.2 million compensation expense related to these awards during the three and nine months ended September 30, 2022, respectively.

A summary of share-based awards activity during the nine months ended September 30, 2022 is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value per Share
	(in thousands)
Nonvested, December 31, 2021	28	$	23.21
Granted	171	$	22.47
Vested	(153)	$	22.17
Forfeited	(3)	$	23.28
Nonvested, September 30, 2022	43	$	23.96

Stock Options

A summary of stock options activity during the nine months ended September 30, 2022 is as follows:

	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(in years)	(in thousands)
Options outstanding, December 31, 2021	500	$	7.49
Granted	—	—
Exercised	—	—
Forfeited	—	—
Options outstanding, September 30, 2022	500	$	7.49	2.08	$	6,945
Options exercisable, September 30, 2022	500	$	7.49	2.08	$	6,945

Share-Based Compensation Expense

Share-based compensation expense was $0.2 million for the three months ended September 30, 2022 and 2021. Recognized tax benefit related to share-based compensation expense was de minimis for the three months ended September 30, 2022 and 2021.

Share-based compensation expense was $3.3 million and $2.9 million for the nine months ended September 30, 2022 and 2021, respectively. Recognized tax benefit related to share-based compensation expense was $0.7 million and $0.6 million for the nine months ended September 30, 2022 and 2021, respectively.As of September 30, 2022, the estimated total remaining unamortized share-based compensation expense related to unvested RSAs, net of forfeitures, was $0.7 million which is expected to be recognized over a weighted-average period of 0.9 years.