Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

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

Stock-Based Compensation

Stock-Based Compensation

The Compensation Committee of the Company's Board of Directors is responsible for the administration of the Company's stock incentive plans, which include the 2011 Long Term Incentive Plan, or the "2011 LTIP", which was approved by shareholders in May 2011 and authorized the maximum aggregate number of shares to be issued of 3,000,000. In general, the 2011 LTIP provides for grants of restricted stock and stock options to be issued with a per-share price equal to the fair market value of a share of common stock on the date of grant.  Option terms are specified at each grant date, but are generally 10 years from the date of issuance.  Options generally vest over a three to five year period.  

In the three months ended September 30, 2015 and 2014, compensation expense related to stock based awards outstanding was $439,000 and $315,000 respectively. In the nine months ended September 30, 2015 and 2014, compensation expense related to stock based awards outstanding was $1.7 million and $1.1 million, respectively.

In the three months ended September 30, 2015, no options were exercised, generating no proceeds to the Company. In the three months ended September 30, 2014, the Company received proceeds of approximately $454,000 upon the exercise of 75,783 options. In the nine months ended September 30, 2015, 3,970 options were exercised, generating proceeds to the Company of approximately $28,000. In the nine months ended September 30, 2014, 130,705 options were exercised, generating proceeds to the Company of approximately $794,000.

At September 30, 2015, total unrecognized compensation expense related to unvested stock and options was approximately $2.9 million, which is expected to be recognized over a period of approximately two years.