XML 43 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Equity Incentive Plan
3 Months Ended
Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Equity Incentive Plan
Equity Incentive Plan
In conjunction with the IPO, our Board of Directors adopted the LTIP. The LTIP is administered by the Board of Directors, or the plan administrator. Awards issuable under the LTIP include common stock, restricted stock, stock options and other incentive awards. We have reserved a total of 4 million shares of our common stock for issuance pursuant to the LTIP, which may be adjusted for changes in our capitalization and certain corporate transactions. To the extent that an award, if forfeitable, expires, terminates or lapses, or an award is otherwise settled in cash without the delivery of shares of common stock to the participant, then any unpaid shares subject to the award will be available for future grant or issuance under the LTIP. The payment of dividend equivalents in cash in conjunction with any outstanding awards will not be counted against the shares available for issuance under the LTIP. The related stock compensation expense incurred by CyrusOne Inc. will be allocated to the Operating Partnership.
Restricted Shares
The Company issued approximately 1 million restricted shares to its employees, officers and board of directors in conjunction with the IPO. These restricted shares generally vest over three years. The per share grant date price was $19.00. These restricted shares also earn non-forfeitable dividends throughout the vesting period. In addition, from time to time, new employees have been issued restricted shares. These restricted shares are issued at a price equal to share price on the grant date.
The Company recognized stock-based compensation expense of approximately $1.4 million and $1.2 million for the three months ended March 31, 2014 and the period ended March 31, 2013, respectively. In addition, we had unrecognized compensation expense of approximately $10.7 million as of March 31, 2014. This expense will be recognized over the remaining vesting period, or approximately 1.8 years.
Performance Based Awards
On April 17, 2013, the Company approved grants of performance-based options and performance-based restricted stock under the LTIP. These awards generally vest over three years upon the achievement of certain performance-based objectives. These awards are expensed based on the grant date fair value if it is probable that the performance conditions will be achieved.
The Company recognized stock-based compensation expense related to the April 17 grant of approximately $0.3 million for the three months ended March 31, 2014, with no such expense for the period ended March 31, 2013. In addition, we had unrecognized compensation expense of approximately $1.4 million as of March 31, 2014. This expense will be recognized over the remaining vesting period, or approximately 2 years.
The performance criteria are based on achieving both an EBITDA and a relative stockholder return target by the end of the three-year period. We are recording a compensation charge based on achieving 62% of both targets.
On February 7, 2014, the Company approved grants of performance-based restricted stock under the Company's 2012 LTIP. These awards generally vest over three years and upon the achievement of certain performance-based objectives. These awards are expensed based on the grant date fair value if it is probable that the performance conditions will be achieved.
The Company recognized stock-based compensation expense related to the February 7 grant of approximately $0.5 million for the three months ended March 31, 2014 with no such expense for the period ended March 31, 2013. In addition, we had unrecognized compensation expense of approximately $6.7 million as of March 31, 2014. This expense will be recognized over the remaining vesting period, or approximately 2.9 years.
The performance criteria is based on achieving both an EBITDA and a relative return target by the end of the three year period. We are recording a compensation charge based on achieving 100% of both targets.