Stock Based Compensation Plan

9 Months Ended

Sep. 30, 2021

Stock Based Compensation Plan [Abstract]

Stock Based Compensation Plan

NOTE J – Stock Based Compensation Plan

As more fully discussed in Note 12 of the notes to the consolidated financial statements in our 2020 Annual Report on Form 10-K, we have awards outstanding for Common Stock under stock-based employee compensation plans.

Our shareholders approved a new stock-based compensation plan, the 2021 Long-Term Incentive Plan (the “2021 LTIP Plan”) and the 1,500,000 shares reserved for issuance under the 2021 LTIP Plan were registered with the SEC in August 2021. The 2021 LTIP Plan is substantially the same as our 2014 Long-Term Incentive Plan (the “2014 LTIP Plan”). No new grants may be awarded under the 2014 LTIP Plan.

The following table summarizes our award activity during the nine months ended September 30, 2021:

	Service-Based Restricted Stock Awards					Performance-Based Restricted Stock Awards
	Shares or Units (#)			Weighted-Average Award Price ($)		Shares or Units (#)			Weighted-Average Award Price ($)
Outstanding at December 31, 2020		239,281			20.77		213,895			21.08
Granted/Issued		119,921			33.29		93,685			32.83
Awards vested or rights exercised(1)		(130,323	)		21.28		(56,578	)		22.95
Forfeited		(5,621	)		24.74		—			—
Additional units earned due to performance		—			—		77,265			20.42
Outstanding at September 30, 2021		223,258			27.10		328,267			23.96
Restricted units expected to vest		223,258			27.10		387,512			25.36

(1) Includes shares repurchased from employees for employee’s tax liability.

The total fair value of service-based restricted stock awards that vested during the nine months ended September 30, 2021 was $6.1 million. The aggregate intrinsic value of outstanding service-based restricted stock awards was $7.5 million at September 30, 2021. The restrictions on the service-based awards generally lapse or vest annually, primarily over four-year and three-year periods.

The total fair value of performance-based restricted stock awards that vested during the nine months ended September 30, 2021 was $2.0 million. The aggregate intrinsic value of outstanding performance awards at September 30, 2021 expected to vest was $13.1 million. The performance awards are based on one-year performance periods but cliff vest in approximately three years from grant date.

The compensation for all awards is charged to selling, general and administrative expense over the respective grants’ vesting periods, primarily on a straight-line basis. The amount charged was approximately $6.5 million for the nine months ended September 30, 2021 and $3.4 million for the same period in 2020. Forfeitures are recognized as they occur. As of September 30, 2021, the total compensation cost related to unvested equity awards was approximately $8.6 million and is expected to be recognized over a weighted-average period of two years.