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Share-Based Compensation
6 Months Ended
Jun. 30, 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 June 30, 2020, 1,598 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 six months ended June 30, 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 six months ended June 30, 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. In June 2020, following the annual stockholders meeting, the Company granted 3 shares of common stock to the non-employee members of the Company’s Board of Directors. The restricted shares granted to these directors have voting rights and vest on the earlier of (a) the one year anniversary of the date of grant or (b) immediately prior to the following year’s annual stockholders’ meeting. 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

 

167

$

84.31

Vested

 

(155)

$

65.06

Forfeited, canceled or expired

 

(10)

$

85.74

Outstanding as of June 30, 2020

 

424

$

83.45

Stock Options

During the six months ended June 30, 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)

$

20.29

 

  

 

  

Forfeited, canceled or expired

 

$

 

  

 

  

Outstanding as of June 30, 2020

 

228

$

15.34

 

0.69

$

17,096

Exercisable as of June 30, 2020

 

228

$

15.34

 

0.69

$

17,096

(1)Aggregate intrinsic value represents the value of the Company’s closing stock price on June 30, 2020 ($90.53) 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 six months ended June 30, 2020 and 2019 related to restricted stock and stock options granted:

    

2020

    

2019

Technology and academic services

$

1,026

$

861

Counseling services and support

 

2,694

 

2,649

Marketing and communication

 

50

 

41

General and administrative

 

1,564

 

1,634

Share-based compensation expense included in operating expenses

 

5,334

 

5,185

Tax effect of share-based compensation

 

(1,334)

 

(1,296)

Share-based compensation expense, net of tax

$

4,000

$

3,889