Equity Compensation Plans

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

At June 30, 2020 and December 31, 2019, 8,615,077 and 3,637,480 shares of common stock, respectively, were available for grant under our Incentive Plan. During the three months ended June 30, 2020, Redwood shareholders approved for grant an additional 5 million shares of common stock under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan and purchases under the Employee Stock Purchase Plan totaled $23 million at June 30, 2020, as shown in the following table.

Table 18.1 – Activities of Equity Compensation Costs by Award Type


	Six Months Ended June 30, 2020
(In Thousands)	Restricted Stock Awards		Restricted Stock Units		Deferred Stock Units		Performance Stock Units		Employee Stock Purchase Plan		Total
Unrecognized compensation cost at beginning of period	$	1,990	$	3,534	$	17,858	$	8,946	$	—	$	32,328
Equity grants	70		3,431		6,593		—		160		10,254
Performance-based valuation adjustment	—		—		—		(7,352)		—		(7,352)
Equity grant forfeitures	(349)		(1,266)		(4,733)		(648)		—		(6,996)
Equity compensation expense	(614)		(772)		(4,511)		720		(80)		(5,257)
Unrecognized Compensation Cost at End of Period	$	1,097	$	4,927	$	15,207	$	1,666	$	80	$	22,977

At June 30, 2020, the weighted average amortization period remaining for all of our equity awards was one year.

Restricted Stock Awards ("RSAs")

At June 30, 2020 and December 31, 2019, there were 92,440 and 216,470 shares, respectively, of RSAs outstanding. Restrictions on these shares lapse through 2022. During the six months ended June 30, 2020, there were no RSAs granted, restrictions on 101,063 RSAs lapsed and those shares were distributed, and 22,967 RSAs were forfeited.

Restricted Stock Units ("RSUs")

At June 30, 2020 and December 31, 2019, there were 333,869 and 275,173 shares, respectively, of RSUs outstanding. Restrictions on these shares lapse through 2024. During the six months ended June 30, 2020, there were 190,624 RSUs granted, 55,514 RSUs distributed, and 76,414 RSUs forfeited.

Deferred Stock Units (“DSUs”)

At June 30, 2020 and December 31, 2019, there were 2,395,786 and 2,630,805 DSUs, respectively, outstanding of which 1,318,200 and 1,286,063, respectively, had vested. During the six months ended June 30, 2020, there were 449,092 DSUs granted, 392,858 DSUs distributed, and 291,253 DSUs forfeited. Unvested DSUs at June 30, 2020 vest through 2024.

Performance Stock Units (“PSUs”)

At June 30, 2020 and December 31, 2019, the target number of PSUs that were unvested was 739,895 and 839,070, respectively. During the six months ended June 30, 2020, 99,175 PSUs were forfeited. Vesting for all PSUs will generally occur at the end of three years from their grant date based on various TSR performance calculations, as discussed in our Annual Report on Form 10-K for the year ended December 31, 2019. During the first quarter of 2020, for PSUs granted in 2018 and 2019, we adjusted our vesting estimate to assume that none of these awards will meet the minimum performance thresholds for vesting. This adjustment resulted in a reversal of $1 million of stock-based compensation expense recorded in the first quarter of 2020.

Employee Stock Purchase Plan ("ESPP")

The ESPP allows a maximum of 600,000 shares of common stock to be purchased in aggregate for all employees. As of June 30, 2020 and December 31, 2019, 463,582 and 430,772 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at June 30, 2020