Arrow has established three stock-based compensation plans: a Long Term Incentive Plan, an Employee Stock Purchase Plan (ESPP) and an Employee Stock Ownership Plan (ESOP). All share and per share data have been adjusted for the September 23, 2022 3% stock dividend.

The Long Term Incentive Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, performance units and performance shares. The Compensation Committee of the Board of Directors administers the Long Term Incentive Plan.

Stock Options - Options may be granted at a price no less than the greater of the par value or fair market value of such shares on the date on which such option is granted, and generally expire ten years from the date of grant. The options usually vest over a four-year period.


	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2022	278,899	$	27.62
Granted	58,710	$	34.79
Exercised	(28,571)	$	22.08
Forfeited	(29,988)	$	30.21
Outstanding at December 31, 2022	279,050	$	29.41	6.36	$	1,250
Vested at Period-End	156,388	$	27.63	4.96	$	979
Expected to Vest	122,662	$	31.68	8.14	$	272


	Exercise Price Ranges
	$18.60		$19.54		$20.59 to $21.02		$27.85		$28.17 to $28.29		$31.170 to $32.28		$34.79		Total
Outstanding at December 31, 2022
Number of Stock Options Outstanding	3,849		9,338		19,868		49,996		69,780		72,659		53,560		279,050
Weighted-Average Remaining Contractual Life (in years)	0.09		1.08		2.61		8.08		5.63		5.92		9.07		6.36
Weighted-Average Exercise Price	$	18.60	$	19.54	$	20.82	$	27.85	$	28.22	$	31.85	$	34.79	$	29.41

Vested at December 31, 2022
Number of Stock Options Outstanding	3,849		9,338		19,868		13,783		58,656		49,814		1,030		156,338
Weighted-Average Remaining Contractual Life (in years)	0.09		1.08		2.61		8.08		5.54		5.39		9.07		4.96
Weighted-Average Exercise Price	$	18.60	$	19.54	$	20.82	$	27.85	$	28.24	$	31.65	$	34.79	$	27.63


	2022			2021			2020
Stock Options Granted	58,710			58,880			55,511
Weighted Average Grant Date Information:
Fair Value of Options Granted	$	7.43		$	4.57		$	4.56
Fair Value Assumptions:
Dividend Yield	2.90		%	3.41		%	2.90		%
Expected Volatility	27.15		%	26.53		%	20.25		%
Risk Free Interest Rate	1.69		%	0.49		%	1.53		%
Expected Lives (in years)	8.56			8.75			6.68

Amount Expensed During the Year	$	312		$	282		$	301
Compensation Costs for Non-vested Awards Not Yet Recognized	542			427			440
Weighted Average Expected Vesting Period, In Years	2.22			2.16			2.17
Proceeds From Stock Options Exercised	$	631		$	1,505		$	748
Tax Benefits Related to Stock Options Exercised	33			69			52
Intrinsic Value of Stock Options Exercised	338			439			282

Restricted Stock Units - The Company grants restricted stock units which gives the recipient the right to receive shares of Company stock upon vesting. The fair value of each restricted stock unit is the market value of Company stock on the date of grant. 100% of the restricted stock unit awards vest three years from the grant date. Once vested, the restricted stock units become vested units and are no longer forfeitable. Vested units settle upon retirement of the recipient. Unvested restricted stock unit awards will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions.


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	13,599	$	29.27
Granted	4,312	$	34.79
Vested	(4,391)	$	28.17

Non-vested at December 31, 2022	13,520	$	31.38

Non-vested at January 1, 2021	12,373	$	29.81
Granted	5,026	$	27.71
Vested	(3,800)	$	28.95

Non-vested at December 31, 2021	13,599	$	29.27

Non-vested at January 1, 2020	8,191	$	28.53
Granted	4,182	$	32.28


Non-vested at December 31, 2020	12,373	$	29.81

The following table presents information on the amounts expensed related to Restricted Stock Units awarded pursuant to the Long Term Incentive Plan for the years ended December 31, 2022, 2021 and 2020.

Arrow sponsors an ESPP under which employees purchase Arrow's common stock at a 5% discount below market price. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan. We have suspended the operation of the ESPP as a result of the delayed filing of this Form 10-K and the related effects under applicable securities laws.

Arrow maintains an employee stock ownership plan (“ESOP”). Substantially all employees of Arrow and its subsidiaries are eligible to participate upon satisfaction of applicable service requirements. The Company makes cash contributions to the Plan each year.