12.

Equity Plans:

Restricted Stock Units

Pursuant to the Amended and Restated Olympic Steel

2007

Omnibus Incentive Plan (the Incentive Plan), the Company

may

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. Since adoption of the Incentive Plan,

1,000,000

shares of common stock have been authorized for equity grants.

On an annual basis the compensation committee of the Company’s Board of Directors awards restricted stock units (RSUs), to each non-employee director as part of their annual compensation. The fair value of the annual awards for

2019

and

2018

were

$80,000

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.

Under the Senior Management Stock Incentive Program (the Plan), each eligible participant is awarded RSUs with a dollar value equal to

10%

of the participant’s base salary, up to an annual maximum of

$17,500.

The RSUs have a

five

-year vesting period and the RSUs 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. The fair value of each RSU award is estimated based on the closing price of the Company’s common stock on the date of the grant and expensed over the vesting period.

Under the Plan, the Company awards RSUs to newly-appointed executive officers, based upon a percentage of their base salary. Upon Mr. Marabito’s promotion to Chief Executive Officer and Mr. Manson’s promotion to Chief Financial Officer on

January 1, 2019,

each received

51,506

RSUs and

14,891

RSUs, respectively. Upon Mr. Greiff’s promotion to President and Chief Operating Officer on

January 1, 2020,

he received

15,694

RSUs. The RSUs will vest

five

years from the grant date, or earlier upon death or disability or upon a change in control of the Company.

Stock-based compensation expense recognized on RSUs for the years ended

December 31, 2019,

2018

and

2017,

respectively, is summarized in the following table:

	For the years ended December 31,
(in thousands)	2019		2018		2017
RSU expense before taxes of the Plan	$	965	$	643	$	560
RSU expense after taxes		704		471		636

All pre-tax charges related to RSUs were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income. The total compensation cost of non-vested awards totaled

$1.7

million and the weighted average remaining vesting period is

years as of

December 31, 2019.

The following table summarizes the activity related to RSUs for the

twelve

months ended

December 31, 2019,

2018

and

2017:

	2019					2018					2017
	Number of Shares			Weighted Average Estimated Fair Value		Number of Shares			Weighted Average Estimated Fair Value		Number of Shares			Weighted Average Estimated Fair Value
Beginning balance		527,546		$	20.65		469,069		$	20.11		421,486		$	19.93
Granted		207,521			16.36		84,283			22.33		73,021			20.01
Converted into shares		(96,845	)		20.59		(19,097	)		16.09		(25,438	)		16.71
Forfeited		(2,136	)		22.80		(6,709	)		16.98		-			-
Outstanding at December 31		636,086		$	19.25		527,546		$	20.65		469,069		$	20.11
Vested at December 31		419,721		$	20.37		436,069		$	20.42		403,428		$	19.89

Of the RSUs granted in

2019,

2018

and

2017,

62,229,

38,052

and

26,837,

respectively, were used to fund supplemental executive retirement plan (SERP) contributions.