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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

10.

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. As of December 31, 2016, there were 611,699 shares of common stock available for future issuance under the LTIP.

Since the approval of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights (“SOSARs”).

Restricted Stock Units (“RSUs”) and Performance Share Awards (“PSAs”)Awards of RSUs and PSAs are made under our LTIP. The vesting of RSUs is generally based on the passage of time, generally on a graded scale over a three, four, and five-year period. Beginning in March of 2011, PSAs were issued annually to members of senior management and each respective grant cliff vests each December 31, assuming the achievement of predetermined, multi-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 the past three years:

 

Units

2016

 

 

 

2015

 

 

 

2014

 

Balance at January 1,

 

674,523

 

 

 

 

888,942

 

 

 

 

1,001,814

 

Granted

 

302,722

 

 

 

 

164,666

 

 

 

 

178,882

 

Forfeited

 

(148,232

)

 

 

 

(92,183

)

 

 

 

(47,379

)

Shares delivered

 

(149,975

)

 

 

 

(286,902

)

 

 

 

(244,375

)

Balance at December 31,

 

679,038

 

 

 

 

674,523

 

 

 

 

888,942

 

 

 

2016

 

 

 

2015

 

 

 

2014

 

Compensation expense

$

3,154

 

 

 

$

1,758

 

 

 

$

2,652

 

 

The amount granted in 2016, 2015 and 2014 includes 199,693, 105,017 and 101,743 PSAs, respectively, exclusive of reinvested dividends. The performance period for the 2014 PSAs concluded on December 31, 2016 and, based on actual performance relative to target, no shares underlying the PSA were issued to participants. The weighted average grant date fair value per unit for awards in 2016, 2015 and 2014 was $18.08, $24.62 and $28.89, respectively. As of December 31, 2016, unrecognized compensation expense for outstanding RSUs and PSAs totaled $5.4 million. The weighted average remaining period over which the expense will be recognized is 2.1 years.

 

 

 

 

 

Stock Only Stock Appreciation Rights The following table sets forth information related to outstanding SOSARS:

 

 

2016

 

 

 

2015

 

 

2014

 

 

SOSARS

Shares

 

 

 

Wtd Avg Exercise Price

 

 

 

Shares

 

 

Wtd Avg

Exercise Price

 

 

Shares

 

 

Wtd Avg

Exercise Price

 

 

Outstanding at January 1,

 

2,199,742

 

 

 

$

17.82

 

 

 

 

1,864,707

 

 

$

16.20

 

 

 

1,977,133

 

 

$

13.91

 

 

Granted

 

743,925

 

 

 

 

17.54

 

 

 

 

423,590

 

 

 

24.62

 

 

 

281,881

 

 

29.78

 

 

Exercised

 

(61,190

)

 

 

 

10.70

 

 

 

 

(70,347

)

 

 

14.12

 

 

 

(364,465

)

 

 

13.99

 

 

Canceled / forfeited

 

(145,861

)

 

 

 

22.80

 

 

 

 

(18,208

)

 

 

25.41

 

 

 

(29,842

)

 

 

19.36

 

 

Outstanding at December 31,

 

2,736,616

 

 

 

$

17.64

 

 

 

 

2,199,742

 

 

$

17.82

 

 

 

1,864,707

 

 

$

16.20

 

 

Exercisable at December 31,

 

1,740,591

 

 

 

 

16.19

 

 

 

 

1,504,599

 

 

14.48

 

 

 

1,285,998

 

 

 

12.94

 

 

Vested and expected to vest

 

2,725,611

 

 

 

 

 

 

 

 

 

2,178,708

 

 

 

 

 

 

 

1,754,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOSAR Grants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average grant date

   fair value per share

$

4.07

 

 

 

 

 

 

 

 

$

7.46

 

 

 

 

 

 

$

9.81

 

 

 

 

 

 

Aggregate grant date

   fair value (in thousands)

$

3,013

 

 

 

 

 

 

 

 

$

3,134

 

 

 

 

 

 

$

2,764

 

 

 

 

 

 

Black-Scholes assumptions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend yield

 

2.85

%

 

 

 

 

 

 

 

 

1.94

%

 

 

 

 

 

 

1.48

%

 

 

 

 

 

Risk free rate of return

 

1.34

%

 

 

 

 

 

 

 

 

1.64

%

 

 

 

 

 

 

1.74

%

 

 

 

 

 

Volatility

 

31.97

%

 

 

 

 

 

 

 

 

36.38

%

 

 

 

 

 

 

37.59

%

 

 

 

 

 

Expected life

6

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

 

 

 

 

 

Compensation expense

   (in thousands)

$

2,735

 

 

 

 

 

 

 

 

$

2,645

 

 

 

 

 

 

$

2,086

 

 

 

 

 

 

 

 

 

 

Under terms of the SOSAR, the recipients receive the right to receive 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. As of December 31, 2016, the intrinsic value of SOSARs vested and expected to vest totaled $18.9 million and the remaining weighted average contractual life of outstanding SOSARs was 5.2 years.