Stock Compensation Plans

On October 5, 2012, shareholders approved the Cal-Maine Foods, Inc. 2012 Omnibus Long-Term Incentive Plan (“2012 Plan”). The purpose of the 2012 Plan is to assist us and our subsidiaries in attracting and retaining selected individuals who, serving as our employees, outside directors and consultants, are expected to contribute to our success and to achieve long-term objectives which will benefit our shareholders through the additional incentives inherent in the awards under the 2012 Plan. The maximum number of shares of common stock available for awards under the 2012 Plan is 1,000,000 shares issuable from the Company’s treasury stock. Awards may be granted under the 2012 Plan to any employee, any non-employee member of the Company’s Board of Directors, and any consultant who is a natural person and provides services to us or one of our subsidiaries (except for incentive stock options which may be granted only to our employees). As of June 2, 2018, there were 423,092 shares available for future issuance under the 2012 Plan.

In January 2018, the Company granted 88,965 restricted shares from treasury. The restricted shares vest three years from the grant date, or upon death or disability, change in control, or retirement (subject to certain requirements). The restricted shares contain no other service or performance conditions. Restricted stock is awarded in the name of the recipient and except for the right of disposal, constitutes issued and outstanding shares of the Company’s common stock for all corporate purposes during the period of restriction including the right to receive dividends. Compensation expense is a fixed amount based on the grant date closing price and is amortized over the vesting period.

Our unrecognized compensation expense as a result of non-vested shares was $5.9 million at June 2, 2018 and June 3, 2017. The unrecognized compensation expense will be amortized to stock compensation expense over a period of 2.1 years.

The Company recognized stock compensation expense of $3.5 million, $3.4 million, and $1.7 million for equity awards in fiscal 2018, 2017, and 2016, respectively.

A summary of our equity award activity and related information for our restricted stock is as follows:



			Weighted
	Number		Average
	of		Grant Date
	Shares		Fair Value
Outstanding, May 28, 2016	288,900		$	35.97
Granted	86,215		43.00
Vested	(121,148	)	26.90
Forfeited	(6,232	)	39.66
Outstanding, June 3, 2017	247,735		$	35.97
Granted	88,965		43.81
Vested	(85,990	)	36.76
Forfeited	(9,420	)	42.43
Outstanding, June 2, 2018	241,290		$	42.30