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Stock Incentive Plans
9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock Incentive Plans Stock Incentive Plans
On April 23, 2019, the Kforce shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”). The 2019 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2019 Plan is approximately 2.8 million shares. The 2019 Plan terminates on April 23, 2029. Prior to the effective date of the 2019 Plan, the Company granted stock awards to eligible participants under our 2017 Stock Incentive Plan, 2016 Stock Incentive Plan and 2013 Stock Incentive Plan (collectively the “Prior Plans”). As of the effective date of the 2019 Plan, no additional awards may be granted pursuant to the Prior Plans; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the Prior Plans.
During the three and nine months ended September 30, 2019, stock-based compensation expense from continuing operations was $2.4 million and $7.4 million, respectively. During the three and nine months ended September 30, 2018, stock-based compensation expense from continuing operations was $1.9 million and $6.3 million, respectively.
Restricted Stock
Restricted stock (including RSAs and RSUs) are granted to executives and management either: for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program or as part of a compensation package in order to retain directors, executives and management. The LTI award amounts are generally based on total shareholder return performance goals. Restricted stock granted during the nine months ended September 30, 2019 will vest over a period of one to ten years, with equal vesting annually.
RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU, pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan, can be deferred to a date later than the vesting date if an appropriate election is made. In the event of such deferral, vested RSUs have the right to dividend equivalents.
The following table presents the restricted stock activity for the nine months ended September 30, 2019 (in thousands, except per share amounts):
Number of Restricted StockWeighted-Average
Grant Date
Fair Value
Total Intrinsic
Value of Restricted
Stock Vested
Outstanding at December 31, 2018 (1)1,320  $24.94  
Granted69  $33.08  
Forfeited(51) $24.23  
Vested (2)(129) $23.75  $4,602  
Outstanding at September 30, 20191,209  $25.55  
(1) The weighted-average grant date fair value at December 31, 2018 has been updated to correct an immaterial reporting error in our 2018 Annual Report on Form 10-K.
(2) The increase in shares vested during the nine months ended September 30, 2019 was due to the acceleration of stock-based compensation expense triggered by a change in control of KGS.
As of September 30, 2019, total unrecognized stock-based compensation expense related to restricted stock was $21.6 million, which will be recognized over a weighted-average remaining period of 3.6 years.