Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Stock-Based Compensation

In July 2011, a Special Meeting of Stockholders of Heartland Express, Inc. was held, at which meeting the approval of the Heartland Express, Inc. 2011 Restricted Stock Award Plan (the “2011 Plan”) was ratified. The 2011 Plan made available up to 0.9 million shares for the purpose of making restricted stock grants to our eligible officers and employees. The 2011 Plan has no shares that remain available for the purpose of making restricted stock grants at December 31, 2022. In May 2021, at the 2021 Annual Meeting of Stockholders, the approval of the Heartland Express, Inc. 2021 Restricted Stock Award Plan (the "2021 Plan") was ratified. The 2021 Plan made available up to 0.6 million shares for the purpose of making restricted stock grants to our eligible employees, directors and consultants. The 2021 Plan has 0.6 million shares that remain available for the purpose of making restricted stock grants at December 31, 2022.

There were no shares granted during the period 2011 to 2019 that remain unvested at December 31, 2022. Shares granted in 2020 through 2022 have various vesting terms that range from immediate to four years from the date of grant and have share prices ranging between $14.01 and $22.10. Compensation expense associated with these awards is based on the market value of our stock on the grant date. Compensation expense associated with restricted stock awards to employees is included in salaries, wages and benefits while awards to directors or consultants is included in other operating expenses in the consolidated statements of comprehensive income. There were no significant assumptions made in determining fair value. Compensation expense associated with restricted stock awards was $1.4 million, $1.1 million, and $2.1 million for the years ended

December 31, 2022, 2021, and 2020, respectively. Unrecognized compensation expense was $0.4 million at December 31, 2022 which will be recognized over a weighted average period of 0.7 years.

The following table summarizes our restricted stock award activity for the years ended December 31, 2022, 2021 and 2020. The vesting dates for the awards vested in 2022 occurred relatively evenly throughout the year ended December 31, 2022. The fair value of awards vested during 2022, 2021 and 2020 was $1.2 million, $1.5 million and $2.3 million, respectively.


	2022
	Number of Restricted Stock Awards ( in thousands)	Weighted Average Grant Date Fair Value
Unvested at January 1	14.0	$	19.70
Granted	106.0	15.19
Vested	(79.9)	15.57
Forfeited	—	—
Outstanding (unvested) at end of year	40.1	$	16.01


	2021
	Number of Restricted Stock Awards ( in thousands)	Weighted Average Grant Date Fair Value
Unvested at January 1	59.7	$	20.29
Granted	32.1	17.92
Vested	(77.8)	19.42
Forfeited	—	—
Outstanding (unvested) at end of year	14.0	$	19.70


	2020
	Number of Restricted Stock Awards (in thousands)	Weighted Average Grant Date Fair Value
Unvested at beginning of year	52.1	$	20.55
Granted	119.9	20.24
Vested	(111.8)	20.38
Forfeited	(0.5)	19.32
Outstanding (unvested) at end of year	59.7	$	20.29