Stock Compensation and Other Benefit Plans for ROIC

12 Months Ended

Dec. 31, 2016

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

Stock Compensation and Other Benefit Plans for ROIC

Stock Compensation and Other Benefit Plans for ROIC

The Company follows the FASB guidance related to stock compensation which establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer, or the employer incurs liabilities to employees in amounts based on the price of the employer’s stock.  The guidance also defines a fair value-based method of accounting for an employee stock option or similar equity instrument.

During 2009, the Company adopted the 2009 Plan.  The 2009 Plan provides for grants of restricted common stock and stock option awards up to an aggregate of 7.5% of the issued and outstanding shares of the Company’s common stock at the time of the award, subject to a ceiling of 4,000,000 shares.

Restricted Stock

During the year ended December 31, 2016, ROIC awarded 350,614 shares of restricted common stock under the 2009 Plan, of which 121,150 shares are performance-based grants and the remainder of the shares are time based grants.  The performance-based grants vest based on pre-defined market-specific performance criteria with a vesting date on January 1, 2019.

A summary of the status of the Company’s non-vested restricted stock awards as of December 31, 2016, and changes during the year ended December 31, 2016 are presented below:

	Shares		Weighted Average Grant Date Fair Value
Non-vested at December 31, 2015	627,471		$	14.39
Granted	350,614		$	17.33
Vested	(310,295	)	$	13.99
Forfeited	(7,332	)	$	17.62
Non-vested at December 31, 2016	660,458		$	16.10

As of December 31, 2016, there remained a total of $5.0 million of unrecognized restricted stock compensation related to outstanding non-vested restricted stock grants awarded under the 2009 Plan.  Restricted stock compensation is expected to be expensed over a remaining weighted average period of 1.7 years (irrespective of achievement of the performance conditions). The total fair value of restricted stock that vested during the years ended December 31, 2016, 2015 and 2014 was $5.6 million, $4.6 million and $2.9 million, respectively.

Stock Based Compensation Expense

For the years ended December 31, 2016, 2015 and 2014, the amounts charged to expense for all stock based compensation totaled approximately $4.9 million, $4.7 million and $3.7 million, respectively.

Profit Sharing and Savings Plan

During 2011, the Company established a profit sharing and savings plan (the “401K Plan”), which permits eligible employees to defer a portion of their compensation in accordance with the Code.  Under the 401K Plan, the Company made matching contributions on behalf of eligible employees.  The Company made contributions to the 401K Plan of approximately $76,000, $31,000 and $25,000 for the years ended December 31, 2016, 2015 and 2014, respectively.