The Company offers long-term incentive plans that provide for the granting of stock awards (both time-vested and performance-based) and stock options, as well as phantom stock units. The Company has established these plans to attract and retain qualified personnel in key positions, provide officers, employees, and non-employee directors with a proprietary interest in the Company as an incentive to contribute to the success of the Company, align the interests of management with those of other stockholders and reward employees for outstanding performance. All officers, other employees, and non-employee directors of the Company and its affiliates are eligible to receive awards under the plans.

The OceanFirst Financial Corp. 2011 Stock Incentive Plan, which authorized the granting of stock options or awards of common stock, was approved by stockholders in 2011. This plan was subsequently amended in 2017 to increase the number of authorized shares available for grant and to update the performance goals under which performance-based awards may be granted.

The OceanFirst Financial Corp. 2020 Stock Incentive Plan, which also authorized the granting of stock options or awards of common stock, was approved by stockholders in 2020. This plan was subsequently amended in 2021 to increase the number of shares authorized for issuance through equity awards.

The following table presents the amount of the plans’ authorized shares and those that remain available for issuance as of December 31, 2023. Both plans allowed the Company to authorize shares subject to options or, in lieu of options, shares in the form of stock awards.


	Authorized Awards			Authorized but Not Issued
	Stock Options	or	Stock Awards	Stock Options	or	Stock Awards
2020 Plan	6,950,000		2,780,000	3,822,733		1,529,093
2011 Plan (1)	4,000,000		1,600,000	248,013		99,205
Total	10,950,000		4,380,000	4,070,746		1,628,298

The Company grants time-based and performance-based restricted stock awards. Time-based awards vest ratably, and generally have a three- to five- year vesting period. Performance-based stock awards, which are granted to certain senior executives, vest based on the estimated probability of achievement of defined tiered performance goals or include market-based conditions. Tiered performance goals for each metric are aligned with corresponding tiered vesting values and have been set using financial data from the applicable strategic plan as approved by the Board.

The Company granted performance-based stock awards in 2023, 2022 and 2021. The 2023 and 2022 performance-based stock awards were issued with a three year cliff vesting schedule and the 2021 performance-based stock awards vest in equal amounts over a four year period.

The 2023 and 2022 performance-based stock awards include a market-based condition. The fair value of these awards were estimated through the use of the Monte Carlo valuation model at the time of grant, applying the following assumptions:

The risk-free interest rate is based on the U.S Treasury rate, with a term equal to the expected performance period. The expected performance period reflects the remaining term of the awards’ performance period. Expected volatility is based on actual historical results.

A summary of the granted but unvested stock award activity, which included both time- and performance-based stock awards, for the years ended December 31, 2023, 2022 and 2021 is as follows:


	2023			2022			2021
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at beginning of year:	835,340	$	21.84	778,971	$	22.30	575,996	$	23.42
Granted	322,425	22.14		279,750	21.47		388,392	21.53
Vested	(228,370)	22.55		(190,094)	23.14		(126,292)	24.04
Forfeited	(114,906)	22.07		(33,287)	22.17		(59,125)	24.39
Outstanding at end of year	814,489	$	21.73	835,340	$	21.84	778,971	$	22.30

The Company’s stock options expire 10 years from the date of grant and generally vest at a rate of 20% per year. The exercise price of each option equals the closing market price of the Company’s stock on the grant date. The Company typically issues treasury shares or authorized but unissued shares to satisfy stock option exercises.

A summary of option activity for the years ended December 31, 2023, 2022 and 2021 is as follows:


	2023			2022			2021
	Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price
Outstanding at beginning of year	2,210,684	$	21.66	2,458,255	$	21.02	2,838,867	$	20.67


Exercised	(195,684)	14.59		(217,038)	14.17		(264,717)	14.80
Forfeited	(15,358)	20.44		—	—		(1,828)	23.78
Expired	(30,203)	18.32		(30,533)	23.68		(114,067)	26.62
Outstanding at end of year	1,969,439	$	22.42	2,210,684	$	21.66	2,458,255	$	21.02
Options exercisable	1,663,506			1,645,901			1,583,521


	Options Outstanding				Options Exercisable
Exercise Prices	Number of Options	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number of Options	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$12.72 to $16.79	12,500	1.2 years	$	14.10	12,500	1.2 years	$	14.10
16.80 to 20.86	1,108,815	3.9	19.27		875,029	3.3	18.95
20.87 to 24.93	30,005	2.2	22.69		30,005	2.2	22.69
24.94 to 29.01	818,119	4.0	26.82		745,972	3.9	26.98


	1,969,439	3.9 years	$	22.42	1,663,506	3.5 years	$	22.58

In 2022, the Company also established the OceanFirst Bank Phantom Equity Plan to issue phantom stock units to select senior management employees. The phantom stock units are liability-classified time-based awards, which vest ratably over a three- to five- year period. The fair value is determined based on the Company’s stock price at the grant date and remeasured monthly. The phantom stock units are settled in cash when they vest.


	For the Year Ended December 31,
	2023		2022		2021
Stock awards	$	5,154	$	5,698	$	4,161
Stock options	700		940		1,244
Phantom stock units	1,092		554		—
Total	$	6,946	$	7,192	$	5,405