Restricted Stock Awards, Time-Based Restricted Stock Units and Performance-Based Restricted Stock Units

The Company grants time-based restricted stock units to certain employees and restricted stock awards to independent directors from time to time pursuant to its 2019 Incentive Plan (2019 Plan). Time-based restricted stock units granted to employees have a vesting period of four years, subject to continued employment with the Company; 25% vesting on each anniversary of the grant date. Restricted stock awards granted to independent directors vest in one year. The Company recognizes the compensation cost associated with restricted stock awards and time-based restricted stock units over the vesting period based on the closing price of the Company’s common stock on the date of grant.

The Company grants performance-based restricted stock units to certain executives and other key employees. The performance-based restricted stock units vest at the end of a 3-year performance cycle if certain financial performance targets are met. The Company recognizes compensation cost associated with the performance-based restricted stock units ratably over the 3-year term when it is considered probable that performance targets will be met. Compensation cost is based on the closing price of the Company’s common stock on the date of grant.

The following table summarizes the activity of restricted stock awards, time-based restricted stock units and performance-based restricted stock units under the 2019 Plan:



		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Outstanding at December 31, 2020	186,471	$	23.91
Granted	58,725	$	36.07
Vested	(46,703)	$	23.24
Forfeited	(5,071)	$	21.90
Outstanding at March 31, 2021	193,422	$	27.82

The Company recognized stock-based compensation expense relating to restricted stock and performance stock in continuing operations of $0.5 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, unamortized stock-based compensation expense relating to restricted stock and performance stock was $3.8 million, which will be recognized over the remaining average vesting period of 1.9 years.

Stock-based compensation expense is recorded as a component of administrative expenses in the Company’s consolidated statements of operations with a corresponding credit to additional paid-in capital in the Company’s consolidated balance sheets.

Stock options granted to employees have a vesting period of four years from the grant date, with 25% vesting after one year, and 1/48th vesting each month thereafter until fully vested, subject to continued employment with the Company. Stock options granted to independent directors vest in one year. All of the stock options have a contractual term of ten years.

The following table summarizes the Company’s stock option activities for the three months ended March 31, 2021 and 2020:



		Three Months Ended March 31,
	2021				2020
			Weighted				Weighted
			Average				Average
	Number of		Exercise		Number of		Exercise
	Shares		Price		Shares		Price
Options outstanding at January 1		301,176	$	16.39		646,946	$	16.96
Options exercised		(107,000)	$	14.01		(7,750)	$	14.54
Options outstanding at March 31		194,176	$	17.70		639,196	$	16.98
Options exercisable		194,176	$	17.70		584,652	$	17.25
Weighted average remaining term		4.3 years				5.2 years

The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2021 and 2020 was $2.9 million and $0.1 million, respectively. The aggregate intrinsic value of all options outstanding as of March 31, 2021 was $5.4 million based on the closing price of the Company’s common stock of $45.52 per share on March 31, 2021, the last trading day of the quarter.

The Company recognized stock-based compensation expense relating to stock options in continuing operations of less than $0.1 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was no remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees and independent directors.

The Company did not grant any stock options during the three months ended March 31, 2021 and 2020.