Note 13 - Equity Plans

12 Months Ended

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

13.   Equity Plans:

Stock Options

The following table summarizes the effect of the impact of stock options on the results of operations:

	For the year ended December 31,
	2012		2011		2010
Stock option expense before taxes	$	-	$	-	$	60
Stock option expense after taxes	$	-	$	-	$	34
Impact per basic share	$	-	$	-	$	-
Impact per diluted share	$	-	$	-	$	-

All pre-tax charges related to stock options were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income.  By December 31, 2010, all expense with respect to stock option awards had been recognized and amortized into expense.

The following table summarizes stock-based award activity during the year ended December 31, 2012:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2011		46,007		$	20.90
Granted		-			-
Exercised		(4,168	)		8.09
Canceled		(1,500	)		32.63
Outstanding at December 31, 2012		40,339		$	21.79		2.8	$	143
Exercisable at December 31, 2012		40,339		$	21.79		2.8	$	143

There were 4,168 stock options exercised during 2012 and 8,000 stock options exercised during 2010.  No stock options were exercised during 2011.  The total intrinsic value of stock options exercised during the years ended December 31, 2012 and 2010 was $56 and $112, respectively.  Net cash proceeds from the exercise of stock options, exclusive of income tax benefits, were $34 and $67 for the years ended December 31, 2012 and 2010, respectively.  Income tax benefits of $21 and $43 were realized from stock option exercises during the years ended December 31, 2012 and 2010, respectively.  The fair value of options vested during the year ended December 31, 2010 totaled $60.

Restricted Stock Units

The Olympic Steel 2007 Omnibus Incentive Plan (the Plan) was approved by the Company’s shareholders in 2007.  The Plan authorizes the Company to grant stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, and other stock- and cash-based awards to employees and Directors of, and consultants to, the Company and its affiliates.  Under the Plan, 500,000 shares of common stock are available for equity grants.

On each of January 4, 2010, March 1, 2011 and January 3, 2012, the Compensation Committee of the Company’s Board of Directors approved the grant of 1,800 restricted stock units (RSUs) to each non-employee Director.  Subject to the terms of the Plan and the RSU agreement, the RSUs vest after one year of service (from the date of grant).  The RSUs are not converted into shares of common stock until the director either resigns or is terminated from the Board of Directors.

The fair value of each RSU was estimated to be the closing price of the Company’s common stock on the date of the grant, which was $33.85, $26.91 and $25.55 for the grants on January 4, 2010, March 1, 2011 and January 3, 2012, respectively.

On January 4, 2010, the Compensation Committee of the Company’s Board of Directors approved the grant of 23,202 RSUs in the aggregate to the members of senior management of the Company.  Subject to the terms of the Plan and the RSU agreement, the RSUs vested at the end of three years from the date of grant.  The fair value of the RSU was estimated to be the closing price of the Common Stock on the date of the grant, which was $33.85 on January 4, 2010.

In 2011, the Compensation Committee for the Company’s Board of Directors approved changes to the Senior Management Compensation Program to include an equity component in order to encourage more ownership of Common Stock by the senior management.  Starting in 2011, the Senior Management Compensation Program imposed stock ownership requirements upon the participants.  Beginning in 2011, each participant will be required to own at least 750 shares of Common Stock for each year that the participant participates in the Senior Management Compensation Program.  Any participant that fails to meet the stock ownership requirements will be ineligible to receive any equity awards under the Company’s equity compensation plans, including the Plan, until the participant satisfies the ownership requirements.  To assist participants in meeting the stock ownership requirements, on an annual basis, if a participant purchases 500 shares of Common Stock on the open market, the Company will award that participant 250 shares of Common Stock.  During 2012, the Company matched 7,250 shares.  Additionally, any participant who continues to comply with the stock ownership requirements as of the five-year, 10-year, 15-year, 20-year and 25-year anniversaries of the participant’s participation in the Senior Management Compensation Program will receive a restricted stock unit award with a dollar value of $25, $50, $75, $100 and $100, respectively.  Restricted stock unit awards will convert into the right to receive shares of Common Stock upon a participant’s retirement, or earlier upon the executive’s death or disability or upon a change in control of the Company.

In recognition of their performance and dedicated years of service, on December 31, 2011, the Compensation Committee of the Board of Directors granted 81,475 RSUs to Messrs. Siegal, Wolfort and Marabito.  The RSUs vest in five years.  Except in limited circumstances, the RSUs will not convert into shares of Common Stock until the retirements of Messrs. Siegal, Wolfort and Marabito, respectively.  These RSU’s are not a part of the 2011 Senior Management Compensation Program discussed above.  The fair value of each RSU was estimated to be the closing price of the Common Stock on the date of the grant, which was $23.32 on December 31, 2011.

Stock-based compensation expense recognized on RSUs is summarized in the following table:

	For the year ended December 31,
	2012		2011		2010
RSU expense before taxes	$	1,238	$	726	$	567
RSU expense after taxes	$	278	$	484	$	318
Impact per basic share	$	0.03	$	0.04	$	0.03
Impact per diluted share	$	0.03	$	0.04	$	0.03

All pre-tax charges related to RSUs were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income.

The following table summarizes the activity related to RSUs for the twelve months ended December 31, 2012:

	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at December 31, 2011		147,603		$	27.16
Granted		47,275		$	23.26
Converted into shares		(375	)	$	22.68
Forfeited		(1,684	)	$	25.96
Outstanding at December 31, 2012		192,819		$	26.22	$	-
Vested at December 31, 2012		127,654		$	26.61	$	-

Of the RSUs granted in 2012, 31,243 were used to fund supplemental executive retirement plan contributions.  There was no intrinsic value for the RSUs that were converted into shares in 2012 or 2010.  There were no RSUs converted into shares during 2011.

All pre-tax charges related to RSUs were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income.