Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

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

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights.

Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) Awards of RSUs and PSAs are made under our LTIP. The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting. PSAs are issued annually to members of management and each respective grant cliff vests each December 31 of the third year following the grant, assuming the achievement of predetermined, three-year cumulative performance targets. The performance measures include a minimum, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. For both RSUs and PSAs, the grant date fair value of the awards, which is equal to the closing price per common share on the date of the award, is used to determine the amount of expense to be recognized over the applicable service period. Settlement of RSUs and PSAs will be made in shares of our common stock currently held in treasury.

The following table summarizes RSU and PSA activity during periods indicated:

Units	2015			2014
Balance at January 1,		888,942			1,001,814
Granted		119,882			133,089
Forfeited		(67,179	)		(11,605	)
Shares delivered		(178,467	)		(83,051	)
Balance at March 31,		763,178			1,040,247

The amount granted in 2015 and 2014 includes PSAs of 100,801 and 90,791 respectively, exclusive of reinvested dividends.

The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated:

	March 31
In thousands	2015		2014
Three months ended	$	367	$	579

Stock Only Stock Appreciation Rights (“SOSARs”) Under terms of the SOSAR, a recipient receives the right to a payment in the form of shares of common stock equal to the difference, if any, in the fair market value of one share of common stock at the time of exercising the SOSAR and the exercise price. The SOSARs vest ratably over a three year period and have a term of ten years.

The following table sets forth information related to outstanding SOSARS.

	2015					2014
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,864,707		$	16.20		1,977,133		$	13.91
Granted		406,142			24.94		275,529			29.89
Exercised		(58,343	)		13.52		(15,974	)		15.48
Canceled / forfeited		—			—		—			—
Outstanding at March 31,		2,212,506		$	17.88		2,236,688		$	15.86
SOSAR Grants
Weighted average grant date fair value per share	$	7.54				$	9.85
Aggregate grant date fair value (in thousands)	$	3,063				$	2,713
Black-Scholes assumptions
Dividend yield		1.92	%				1.47	%
Risk free rate of return		1.64	%				1.73	%
Volatility		36.48	%				37.59	%
Expected life		6 yrs					6 yrs

The following table sets forth SOSAR compensation expense for the periods indicated:

	March 31
In thousands	2015		2014
Three months ended	$	589	$	449