Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

The Company has stock plans under which directors, officers, key employees and consultants of the Company may be granted restricted stock, stock options, performance share awards and other equity-based instruments as a means of promoting the Company’s long-term growth and profitability. The plans are intended to encourage participants to contribute to, and participate in the success of the Company.

On December 16, 2014, the Company's Board of Directors approved the 2015 Incentive Award Plan, or 2015 Plan, which was subsequently approved by the Company's stockholders on June 16, 2015. On March 10, 2021, the Company's Board of Directors approved an amendment of the Company's 2015 Incentive Award Plan to increase the number of authorized shares of common stock available for issuance by 3.2 million shares. The amendment was subsequently approved by the Company's stockholders on May 20, 2021. As of December 31, 2022 and December 31, 2021, 3,712,123 and 4,174,216 shares of the Company’s common stock, respectively, remained available for future issuance under the 2015 Plan, as amended.

Stock-based compensation cost amounted to $11.5 million, $12.5 million and $11.6 million for 2022, 2021 and 2020, respectively. During 2022, 2021 and 2020 there was a $2.4 million, $1.2 million and $3.6 million tax benefit recognized in income related to stock-based compensation.

Restricted Stock and Restricted Stock Units

Restricted stock and restricted stock unit awards are valued at the fair value of the shares on the date of grant. Generally, granted shares and units vest over a two to four year graded vesting period. Each restricted stock unit represents the right to

receive one share of common stock upon vesting of such restricted stock unit. Vesting of restricted stock units is based on time-based service conditions. In order to vest, the participant must still be employed by the Company, with certain contractual exclusions, at each vesting event. Generally, within 30 days after vesting, the shares underlying the award will be issued to the participant. In the event a successor corporation in a change in control situation fails to assume or substitute for the restricted stock units, the restricted stock units will automatically vest in full as of immediately prior to the consummation of such change in control. In the event of death or permanent disability of a participant, the restricted stock units will automatically vest in full. Compensation expense is recognized on a straight-line basis over the requisite service period.

A summary of the status of the Company’s restricted stock shares (restricted stock awards and restricted stock unit awards) as of December 31, 2022 and changes during the year ended December 31, 2022 is presented below:


	Number of Shares	Weighted-Average Grant Date Fair Value ($)
Outstanding at December 31, 2021	581,700	31.07
Granted	404,062	23.48
Vested	(328,834)	34.27
Forfeited	(32,476)	25.71
Outstanding at December 31, 2022	624,452	24.76

There were 404,062 and 399,179 restricted stock shares granted during the years ended December 31, 2022 and December 31, 2021, respectively. As of December 31, 2022 and December 31, 2021, there was $8.6 million and $9.9 million, respectively, of total unrecognized compensation cost related to nonvested restricted stock to be recognized over 1.7 years and 1.6 years, respectively.

The weighted-average fair value of restricted stock granted during the years ended December 31, 2022, 2021 and 2020 was $23.48, $25.17 and $35.48, respectively. The total fair value of restricted stock shares vested during the years ended December 31, 2022, 2021 and 2020 was $7.5 million, $4.6 million and $5.5 million, respectively.

Performance and Market Share Awards

The Company grants certain executives performance and market stock units that vest based on either market, performance or market and performance conditions as part of a long-term incentive plan. The number of shares of common stock underlying each award is determined at the end of the performance period. In order to vest, the executive must still be employed by the Company, with certain contractual exclusions, at the end of the performance period.

Stock-based compensation cost related to these awards amounted to $1.5 million, $3.5 million and $4.5 million for 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, there was $3.0 million and $4.2 million, respectively, of total unrecognized compensation cost related to nonvested performance and market share awards expected to be recognized over 1.6 years and 1.7 years, respectively.