In February 2019, the Company's Board of Directors approved the Steven Madden, Ltd. 2019 Incentive Compensation Plan (the “2019 Plan”), under which non-qualified stock options, stock appreciation rights, performance shares, restricted stock, other stock-based awards and performance-based awards may be granted to employees, consultants and non-employee directors. The 2019 Plan is the successor to the Company's Amended and Restated 2006 Stock Incentive Plan, as amended (the "2006 Plan"), the term of which expired on April 6, 2019. The Company's stockholders approved the 2019 Plan at the Company's annual meeting of stockholders held on May 24, 2019.

The following table summarizes the number of shares of common stock authorized for issuance under the 2019 Plan, the number of stock-based awards granted (net of expired or cancelled awards) under the 2019 Plan and the number of shares of common stock available for the grant of stock-based awards under the 2019 Plan:


(in thousands)
Common stock authorized			11,000
Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled awards			(5,066)
Common stock available for grant of stock-based awards as of December 31, 2022			5,934

In addition, vested and unvested options to purchase 1,719 shares of common stock and 1,170 shares of unvested restricted stock awarded under the 2006 Plan were outstanding as of December 31, 2022.


	Years Ended December 31,
(in thousands)	2022		2021		2020
Restricted stock	$	21,005	$	18,144	$	18,740
Stock options	3,391		4,134		3,899
Total	$	24,396	$	22,278	$	22,639

We calculate an estimated forfeiture rate annually based on historical forfeiture and expectations about future forfeitures. Equity-based compensation is included in operating expenses on the Company’s Consolidated Statements of Income/(Loss).


(in thousands)	Number of Shares	Weighted Average Fair Value at Grant Date




Outstanding at January 1, 2021	3,651	20.81
Granted	413	40.64
Vested	(1,166)	19.93
Forfeited	(49)	35.26
Outstanding at December 31, 2021	2,849	$	23.81
Granted	439	40.30
Vested	(1,144)	21.25
Forfeited	(35)	34.37
Outstanding at December 31, 2022	2,109	$	28.44

As of December 31, 2022, the Company had $43,266 of total unrecognized compensation cost related to restricted stock awards granted under the 2019 Plan and the 2006 Plan. This cost is expected to be recognized over a weighted average period of 3.0 years. The Company determines the fair value of its restricted stock awards based on the market price of its common stock on the date of grant.

The fair values of the restricted stock that vested during the years ended December 31, 2022, 2021, and 2020 were $24,300, $23,231, and $23,839, respectively.


(in thousands except for per share price)	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2021	2,674	$	26.80
Granted	270	$	43.30
Exercised	(411)	$	23.67
Forfeited	(2)	$	31.56
Outstanding at December 31, 2021	2,531	$	29.06	2.7 years	$	44,054
Vested at December 31, 2021	2,070	$	28.20	2.6 years	$	37,829

Outstanding at January 1, 2022	2,531	$	29.06
Granted	266	37.04
Exercised	(24)	25.61
Forfeited	(17)	39.28
Outstanding at December 31, 2022	2,756	$	29.80	2.0 years	$	11,778

Vested and Exercisable at December 31, 2022	2,543	$	29.11	2.0 years	$	11,741

At December 31, 2022, $1,825 of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.5 years.


	Years Ended December 31,
(in thousands)	2022		2021		2020
Cash received from the exercise of stock options	$	602	$	9,732	$	1,609
Intrinsic value of stock options exercised	$	314	$	8,622	$	993
Tax benefits realized on exercise of stock options	$	41	$	1,512	$	234

The Company uses the Black-Scholes-Merton option-pricing model to estimate the fair value of options granted, which requires several assumptions. The expected term of the options represents the estimated period of time until exercise and is based on the historical experience of similar awards. Expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield is based on the Company's annualized dividend per share amount divided by the Company's stock price. The following weighted average assumptions were used for stock options granted during 2022, 2021, and 2020:

Years Ended December 31,

2022

2021

2020

Volatility

42.5% to 51.1%

40.3% to 49.6%

33.9% to 56.7%

Risk free interest rate

1.2% to 3.0%

0.1% to 1.0%

0.2% to 1.6%

Expected life in years

3.0 to 5.0

2.0 to 4.0

3.0 to 5.0

Dividend yield

2.1%

1.4%

1.2%

Weighted average fair value

$13.42

$13.30

$10.15