Share-Based Compensation

6 Months Ended

Jun. 30, 2020

Stockholders' Equity Note [Abstract]

Under the Company’s long-term incentive plans, key members of management may be issued restricted stock units (“RSUs”) each year based upon the financial performance of the Company and its subsidiaries. The number of RSUs granted to employees each year is determined based upon the performance of individual subsidiaries and consolidated financial performance. Generally, for RSUs granted through 2016, each award will vest at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier. Awards granted in 2017 and 2018 will vest at the end of three years from the date of grant or at the time a recipient retires after reaching age 65, if earlier. Awards granted in 2019 and thereafter will vest ratably, at the end of each year from the date of grant, over a three-year period. Awards granted through February 2020 were granted based upon past performance and were typically granted each year, shortly after the end of the year. Beginning in March 2020, the incentive plan was modified to award a combination of RSUs and Performance Stock Units (“PSUs”) which are granted in March each year based upon performance targets for the next three years, as approved by the Company’s board of directors. 50% percent of the awards granted are time based vesting RSUs and the other 50% percent are performance based awards granted at the plan’s targeted performance. The actual number of PSUs ultimately vesting can vary from zero to 200% of target, based upon the Company performance. Additional RSUs are granted to the Company’s outside directors under the Company’s Non-Employee Directors Compensation Plan with a one-year vesting period.

During the six months ended June 30, 2020 and 2019, the grant date fair value of the RSUs granted based upon past performance was $3.2 million and $2.1 million, respectively. During the six months ended June 30, 2020, the grant date fair value of the RSUs granted based upon targeted future performance and granted to our non-employee directors was $6.1 million and $1.0 million, respectively.

The total stock-based compensation expense was $1.6 million and $2.5 million for the three and six months periods ended June 30, 2020, respectively, and $0.5 million and $1.4 million for the three and six month periods ended June 30, 2019, respectively.

The following table presents the stock plan activity for the six months ended June 30, 2020 for RSUs:


	2020
	Units	Weighted Average Grant Date Fair Value
Outstanding January 1,	187,646	$	45.78
Granted	298,725	34.51
Vested	(73,228)	49.97
Forfeited	(8,316)	43.84
Outstanding, June 30,	404,827	$	36.75