Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees to be recognized in the income statement based on their grant date fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period.

A summary of time-based and performance-based activity for the year ended December 31, 2022 is as follows:



	Time-Based			Performance-Based
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
	(in whole shares)			(in whole shares)
Outstanding — beginning of year	655,093	$	24.62	50,000	$	32.55
Granted(a)	342,622	15.97		1,333	13.88
Vested	(264,224)	24.66		(1,333)	13.88
Cancelled or expired	(17,249)	22.08		—	—
Outstanding — end of year	716,242	$	20.53	50,000	$	32.55

(a) Included in the granted amount are 12,500 restricted share units.

The Company recognized compensation expense of $7.2 million, $6.5 million and $6.1 million for the years ended December 31, 2022, 2021 and 2020, respectively, relating to time-based awards and performance-based awards.

The 50,000 share performance-based award in 2019 relates to a five-year cumulative profit target through 2023. Through December 31, 2022, no compensation expense was recognized as achievement of the performance target is deemed not probable.

The total fair value of restricted shares and share units that vested during the years ended December 31, 2022, 2021 and 2020 was $6.5 million, $6.7 million and $6.4 million, respectively.

As of December 31, 2022, the Company had unrecognized compensation expense of $8.1 million related to restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 1.8 years.