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Stock-Based Compensation Plans
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans STOCK-BASED COMPENSATION PLANS
At December 31, 2021, the Company had two equity incentive plans under which awards are made, which include the Gentex Corporation 2019 Omnibus Incentive Plan ("2019 Omnibus Plan"), and an employee stock purchase plan. Those plans and any material amendments thereto have previously been approved by shareholders.

The 2019 Omnibus Plan provides for the potential awards to: i) employees; and ii) non-employee directors of the Company or its subsidiaries, which potential awards may be stock options, both incentive stock options and non-qualified stock options, appreciation rights, restricted stock, restricted stock units, performance share awards and performance units, and other awards that are stock-based, cash-based or a combination of both. The 2019 Omnibus Plan replaced the Company's Employee Stock Option Plan, Second Restricted Stock Plan, and Amended and Restated Non-Employee Director Stock Option Plan (the "Prior Plans"), which were also approved by shareholders. Any existing awards previously granted under the Prior Plans remain outstanding in accordance with their terms and are governed by the Prior Plans as applicable.

2019 Omnibus Incentive Plan

The 2019 Omnibus Plan covers 45,000,000 shares of common stock. The purpose of the 2019 Omnibus Plan is to attract and retain employees, officers, and directors of the Company and its subsidiaries and to motivate and provide such persons incentives and rewards for performance. As of December 31, 2021, 15,634,656 shares (net of shares from canceled/expired options) have been issued under the 2019 Omnibus Plan, which includes stock options (at a set conversion rate), restricted shares, and performance share awards.

Shares GrantedConversion RateTotal Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options3,443,588 1.003,443,588 
Restricted Stock2,582,553 4.0610,485,165 
Performance Shares420,173 4.061,705,903 
Total6,446,314 15,634,656 
Employee Stock Options
The Employee Stock Option Plan allowed the Company to grant up to 24,000,000 shares of common stock under the plan, prior to its replacement by the 2019 Omnibus Plan.
The Company has granted options on 3,443,588 shares (net of shares from canceled/expired options) under the 2019 Omnibus Plan and 12,734,438 shares (net of shares from canceled/expired options) under the prior plan (prior to its replacement) through December 31, 2021. Under each of such plans, the option exercise price equals the stock’s market price on date of grant. The options vest after one to five years, and expire after five to ten years.

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods:
202120202019
Dividend yield (1)
1.8 %2.0 %2.0 %
Expected volatility (2)
27.6 %27.5 %23.9 %
Risk-free interest rate (3)
1.3 %0.3 %1.8 %
Expected term of options (in years) (4)
4.14.24.2
Weighted-average grant-date fair value$6.59 $4.83 $4.42 
(1)    Represents the Company's estimated cash dividend yield over the expected term of option grant.
(2) Amount is determined based on analysis of historical price volatility of the Company's common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant.
(3)    Represents the U.S. Treasury yield over the expected term of the option grant.
(4) Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior.
As of December 31, 2021, there was $9,324,372 of unrecognized compensation cost related to stock option awards which is expected to be recognized over the remaining vesting periods, with a weighted-average period of 2.08 years. Stock option expense for the years ended December 31, 2021, 2020 and 2019 was $5,780,959, $4,935,527, and $6,345,147 respectively.
A summary of the status of the Company’s stock option plans at December 31, 2021, 2020 and 2019, and changes during the same periods are presented in the tables below.
 2021
 Shares
(000)		Wtd. Avg.
Ex. Price		Wtd. Avg. 
Remaining
Contract Life		Aggregate
Intrinsic 
Value
(000)
Outstanding at Beginning of Year4,533 $23 
Granted1,434 34 
Exercised(1,184)20 $17,289 
Forfeited(248)27 
Outstanding at End of Year4,535 27 3.4 years$35,283 
Exercisable at End of Year1,380 $23 2.5 years$16,433 

 2020
 Shares
(000)		Wtd. Avg.
Ex. Price		Wtd. Avg. 
Remaining
Contract Life		Aggregate
Intrinsic 
Value
(000)
Outstanding at Beginning of Year5,435 $20 
Granted1,571 26 
Exercised(2,077)18 $23,861 
Forfeited(396)22 
Outstanding at End of Year4,533 23 3.4 years$48,501 
Exercisable at End of Year1,358 $20 2.3 years$18,334 
 
 2019
 Shares
(000)		Wtd. Avg.
Ex. Price		Wtd. Avg. 
Remaining
Contract Life		Aggregate
Intrinsic 
Value
(000)
Outstanding at Beginning of Year8,944 $18 
Granted1,049 25 
Exercised(4,402)16 $36,294 
Forfeited(156)20 
Outstanding at End of Year5,435 20 3.1 years$47,170 
Exercisable at End of Year1,859 $18 2.2 years$20,484 

A summary of the status of the Company’s non-vested employee stock option activity for the years ended December 31, 2021, 2020, and 2019, are presented in the table below: 
 202120202019
 Shares
(000)		Wtd. Avg
Grant
Date
Fair Value		Shares
(000)		Wtd. Avg
Grant
Date
Fair Value		Shares
(000)		Wtd. Avg
Grant
Date
Fair Value
Nonvested Stock Options at Beginning of Year3,175 $5 3,575 $4 4,842 $4 
Granted1,434 7 1,571 5 1,049 4 
Vested(1,212)4 (1,585)4 (2,165)4 
Forfeited(241)5 (386)4 (151)4 
Nonvested Stock Options at End of Year3,156 $5 3,175 $5 3,575 $4 
 
Restricted Shares
The Company’s Second Restricted Stock Plan provided for a maximum number of shares that may be subject to awards of 9,000,000 shares, prior to its replacement by the 2019 Omnibus Plan.
Restricted shares awarded under either that plan or the 2019 Omnibus Plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by a committee, appointed by the Board of Directors, but may not exceed ten years. The Company has issued 2,582,553 shares under the 2019 Omnibus Plan and 5,630,019 shares under the prior plan (prior to its replacement) as of December 31, 2021, and has 3,760,468 shares outstanding under such plans.
202120202019
Vesting Period(1)
Shares GrantedMarket Price at Grant DateShares GrantedMarket Price at Grant DateShares GrantedMarket Price at Grant Date
1 Year24,634 
32.98 - 34.37
42,074 
22.16 - 26.94
39,627 
22.19
2 Year— — 21,669 
23.88 - 26.94
— — 
3 Years606,853 
32.98 - 35.67
119,504 
23.88 - 31.08
64,718 
20.40
4 Years309,955 
32.98 - 35.67
479,346 
20.68 - 28.98
773,698 
20.68 - 28.98
5 Years157,169 
32.98 - 35.67
170,355 
20.68 - 28.98
254,988 
20.68 - 28.98
1,098,611 
$32.98 - 35.67
832,948 
$20.68 - 31.08
1,133,031 
$20.40 - 28.98
(1) Each of these awards cliff vest after the restriction period with no additional restrictions.
A summary of restricted share award activity, including award grants, vesting, and forfeitures for the years ended December 31, 2021, 2020, and 2019, are presented in the table below: 
 202120202019
 Shares
(000)		Shares
(000)		Shares
(000)
Nonvested, Beginning of Year3,599 3,315 2,638 
Granted1,099 833 1,133 
Vested(759)(303)(361)
Forfeited(179)(246)(95)
Nonvested, End of Year3,760 3,599 3,315 
As of December 31, 2021, there was unearned stock-based compensation of $46,009,313 associated with these restricted stock grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Compensation expense related to restricted stock for the years ended December 31, 2021, 2020 and 2019 was $19,304,013, $20,675,447, and $13,770,917 respectively.
Performance Shares
Performance shares awarded under the 2019 Omnibus Plan are considered performance condition awards as attainment is based on the Company's performance relative to pre-established metrics. The fair value of such performance share awards was determined using the Company's closing stock price on the date of grant. The expected attainment of the metrics for these awards is then analyzed each reporting period, and the related expense is adjusted based on expected attainment, if the then expected attainment differs from previous expectations. The cumulative effect on current and prior periods of a change in expected attainment is recognized in the period of change. As of December 31, 2021, the Company had unearned stock-based compensation of $6,416,607 associated with these performance share grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable performance periods. Compensation expense related to performance share grants for the years ended December 31, 2021, 2020, and 2019 was $1,573,831, $4,424,678, and $897,136, respectively.
Employee Stock Purchase Plan
In 2013, the Gentex Corporation Employee Stock Purchase Plan covering 2,000,000 shares of common stock was approved by the shareholders, replacing a prior plan. Under such plan, the Company sells shares at 85% of the stock’s market price at the date of purchase. Under ASC 718, the 15% discounted value is recognized as compensation expense. Compensation expense related to the employee stock purchase plan for the years ended December 31, 2021, 2020, and 2019 was $713,912, $810,605, and $647,988, respectively. The following table summarizes shares sold to employees under the 2013 Plan in the years ended December 31, 2021, 2020 and 2019:
Plan202120202019Cumulative Shares IssuedWeighted Average Fair Value 2021
2013 Employee Stock Purchase Plan143,892 208,273 173,013 1,498,021 $29.08