Share-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-Based Compensation

Share-Based Compensation

12. Share-Based Compensation

Incentive Plan

Prior to June 2017, the Company made grants of restricted stock and stock options under its 2008 Equity Incentive Plan (the “2008 Plan”). In January 2017, the Board of Directors of the Company approved, and at the Company’s 2017 annual meeting of stockholders held on June 14, 2017, the Company’s stockholders adopted, a 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3,000 shares may be granted. As of March 31, 2020, 1,601 shares were available for grants under the 2017 Plan. All grants of equity incentives made after June 2017 have been made from the 2017 Plan.

Restricted Stock

During the three months ended March 31, 2020, the Company granted 164 shares of common stock with a service vesting condition to certain of its executives, officers and employees. The restricted shares have voting rights and vest in five annual installments of 20%, with the first installment vesting in March of the calendar year following the date of grant (the “first vesting date”) and subsequent installments vesting on each of the four anniversaries of the first vesting date. Upon vesting, shares will be held in lieu of taxes equivalent to the minimum statutory tax withholding required to be paid when the restricted stock vests. During the three months ended March 31, 2020, the Company withheld 62 shares of common stock in lieu of taxes at a cost of $4,969 on the restricted stock vesting dates. A summary of the activity related to restricted stock granted under the Company’s Incentive Plan since December 31, 2019 is as follows:

		Weighted Average
	Total	Grant Date
	Shares	Fair Value per Share
Outstanding as of December 31, 2019	422	$	76.43
Granted	164	$	84.07
Vested	(153)	$	64.37
Forfeited, canceled or expired	(10)	$	85.74
Outstanding as of March 31, 2020	423	$	83.53

Stock Options

During the three months ended March 31, 2020, no options were granted. A summary of the activity since December 31, 2019 related to stock options granted under the Company’s Incentive Plan is as follows:

	Summary of Stock Options Outstanding
		Weighted		Weighted
		Average		Average
		Exercise		Remaining	Aggregate
	Total	Price per		Contractual	Intrinsic
	Shares	Share		Term (Years)	Value ($)(1)
Outstanding as of December 31, 2019	232	$	15.42
Granted	—	$	—
Exercised	(4)	$	20.50
Forfeited, canceled or expired	—	$	—
Outstanding as of March 31, 2020	228	$	15.34	0.94	$	13,868
Exercisable as of March 31, 2020	228	$	15.34	0.94	$	13,868

(1) Aggregate intrinsic value represents the value of the Company’s closing stock price on March 31, 2020 ($76.29) in excess of the exercise price multiplied by the number of shares underlying options outstanding or exercisable, as applicable.

Share-based Compensation Expense

The table below outlines share-based compensation expense for the three months ended March 31, 2020 and 2019 related to restricted stock and stock options granted:

	2020		2019
Technology and academic services	$	518	$	434
Counseling services and support		1,330		1,334
Marketing and communication		25		19
General and administrative		783		849
Share-based compensation expense included in operating expenses		2,656		2,636
Tax effect of share-based compensation		(664)		(659)
Share-based compensation expense, net of tax	$	1,992	$	1,977