Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

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

Stock-Based Compensation

STOCK-BASED COMPENSATION

All stock-based awards are subject to the terms of the CareTrust REIT, Inc. and CTR Partnership, L.P. Incentive Award Plan (the “Plan”). The Plan provides for the granting of stock-based compensation, including stock options, restricted stock, performance awards, restricted stock units and other incentive awards to officers, employees and directors in connection with their employment with or services provided to the Company.

The following table summarizes restricted stock award activity for the years ended December 31, 2016 and 2015:

	Shares		Weighted Average Share Price
Unvested balance at December 31, 2014	155,040		$	12.23
Granted	272,300		12.70
Vested	(32,643	)	12.23
Unvested balance at December 31, 2015	394,697		12.56
Granted	20,770		13.13
Vested	(121,899	)	12.60
Forfeited	(7,500	)	10.87
Unvested balance at December 31, 2016	286,068		$	12.63

The Company recognized $1.5 million, $1.5 million and $0.2 million of compensation expense associated with all grants for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, there was $2.4 million of unamortized stock-based compensation expense related to these unvested awards and the weighted-average remaining vesting period of such awards was 2.3 years.

In connection with the Spin-Off, employees of Ensign who had unvested shares of restricted stock were given one share of CareTrust REIT unvested restricted stock totaling 207,580 shares at the Spin-Off. These restricted shares are subject to a time vesting provision only and the Company does not recognize any stock compensation expense associated with these awards. During the year ended December 31, 2016, 46,650 shares vested or were forfeited. At December 31, 2016, there were 42,180 unvested restricted stock awards outstanding.

In May 2016, the Compensation Committee of the Company's board of directors granted 20,770 shares of restricted stock to members of the board of directors. Each share had a fair market value on the date of grant of $13.13 per share, based on the market price of the Company's common stock on that date, with the shares vesting over one year.