Stock-based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

9. Stock-based Compensation

The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which officers, employees and directors may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At March 31, 2013, 508,765 shares of common stock remain available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of Virtus common stock when the restriction expires. RSUs generally have a term of three years and may be time-vested or performance-contingent. Stock options generally vest over three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method which is based on the fair market value price on the date of grant. Shares that are issued upon exercise of employee stock options and vesting of RSUs are newly issued shares and not issued from treasury stock.

Restricted Stock Units

RSU activity for the three months ended March 31, 2013 is summarized as follows:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2012		292,057		$	57.89
Granted		30,719		$	185.75
Forfeited		(8,627	)	$	61.85
Settled		(69,157	)	$	42.33
Outstanding at March 31, 2013		244,992		$	85.37

For the three months ended March 31, 2013, a total of 27,747 RSUs were withheld by the Company as a result of net share settlements to satisfy employee tax withholding obligations. During the three months ended March 31, 2013, the Company paid $5.2 million in employee tax withholding obligations related to the RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting.

Stock Options

Stock option activity for the three months ended March 31, 2013 is summarized as follows:

	Number of Shares			Weighted Average Exercise Price
Outstanding at December 31, 2012		220,349		$	20.03
Exercised		(12,491	)	$	10.08
Forfeited		—		$	—
Outstanding at March 31, 2013		207,858		$	20.63

During the three months ended March 31, 2013 and 2012, the Company recognized $1.4 million and $1.6 million, respectively, in total stock-based compensation expense. As of March 31, 2013 unamortized stock-based compensation expense for unvested RSUs and stock options was $12.1 million and $0.1 million, respectively, with weighted-average remaining amortization periods of 1.6 years and 0.6 years, respectively.