Note 8 - Equity Plans

6 Months Ended

Jun. 30, 2013

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

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

8. Equity Plans:

Stock Options

The following table summarizes stock option activity during the six months ended June 30, 2013:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2012		40,339		$	21.79
Granted		-			-
Exercised		(1,667	)		3.50
Canceled		-			-
Outstanding at June 30, 2013		38,672		$	22.58	2.5	$	251
Exercisable at June 30, 2013		38,672		$	22.58	2.5	$	251

There were 1,667 and 2,170 stock options exercised during the six months ended June 30, 2013 and 2012, respectively. The total intrinsic value of stock options exercised during the six months ended June 30, 2013 and 2012 was $28 thousand and $52 thousand, respectively. All options outstanding are vested as of June 30, 2013.

Restricted Stock Units and Performance Share Units

The Olympic Steel 2007 Omnibus Incentive Plan (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 January 2, 2013 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 $23.41 and $25.55 for the grants on January 2, 2013 and January 3, 2012, respectively.

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. Beginning in 2011, the Senior Management Compensation Program imposed stock ownership requirements upon the participants. Each participant is 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 to 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 the six months ended June 30, 2013 and 2012 the Company matched 6,500 and 6,750 shares, respectively. 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 thousand, $50 thousand, $75 thousand, $100 thousand and $100 thousand, 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 participant’s death or disability or upon a change in control of the Company.

Stock-based compensation expense recognized on RSUs for the three and six months ended June 30, 2013 and 2012, respectively, is summarized in the following table:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2013		2012		2013		2012
(in thousands, except per share data)
RSU expense before taxes	$	205	$	272	$	449	$	552
RSU expense after taxes	$	120	$	163	$	283	$	335
Impact per basic share	$	0.01	$	0.01	$	0.03	$	0.03
Impact per diluted share	$	0.01	$	0.01	$	0.03	$	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 three and six months ended June 30, 2013:

	Number of Shares		Weighted Average Granted Price		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2012		192,819	$	26.22
Granted		37,341		21.33
Converted into shares		-		-
Forfeited		-		-
Outstanding at June 30, 2013		230,160	$	25.43	$	251
Vested at June 30, 2013		168,808	$	26.07	$	196

No RSUs were converted into shares during the six months ended June 30, 2013. During the six months ended June 30, 2012, 375 RSU’s were converted into shares.