Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Plans

5. Stock-Based Compensation Plans

Employee Stock-Based Incentive Plan

The Company has issued stock options (“Stock Option Awards”) and restricted stock units (“Restricted Stock Units”) to employees and directors under its Amended and Restated First Acceptance Corporation 2002 Long Term Incentive Plan (the “Plan”) and accounts for such issuances in accordance with FASB ASC 718, Compensation – Stock Compensation. At December 31, 2016, there were 7,332,533 shares remaining available for issuance under the Plan.

Stock Option Awards were all granted with an exercise price equal to or greater than the market price of the Company’s stock at the date of grant. Stock Option Awards expire over five or ten years from the date of grant and were all fully vested as of January 2016. Compensation expense related to Stock Option Awards was calculated under the fair value method and recorded on a straight-line basis over the vesting period. No Stock Option Awards have been granted since January 2012, and of those outstanding, 750,000 expired unexercised at January 31, 2017 and 220,000 having a $3.04 exercise price expire on March 17, 2018.

A summary of the activity for the Company’s Stock Option Awards is presented below (in thousands, except per share data).

	Options			Exercise Price		Weighted Average Exercise Price		Aggregated Intrinsic Value
Options outstanding at December 31, 2013		1,237		$1.45-$8.13		$	2.19
Forfeited		(117	)	$	5.22	$	5.22
Options outstanding at December 31, 2014		1,120		$1.45-$3.04		$	1.87
Forfeited		(35	)	$	3.04	$	3.04
Options outstanding at December 31, 2015		1,085		$1.45-$3.04		$	1.83
Forfeited		(115	)	$1.45-$3.04		$	2.00
Options outstanding at December 31, 2016		970		$1.45-$3.04		$	1.81	$	-
Options exercisable/vested at December 31, 2016		970				$	1.81	$	-

On March 15, 2016 and March 10, 2015 respectively, the Compensation Committee of the Board of Directors of the Company awarded 146 thousand and 141 thousand Restricted Stock Units to executive officers. Such Restricted Stock Units will vest, and an equal number of shares of common stock will be deliverable upon the third anniversary of the dates of grants. Compensation expense related to the units was calculated based upon the closing market prices of the common stock on the dates of grants ($2.30 and $2.44) and is recorded on a straight-line basis over the vesting period.

Employee Stock Purchase Plan

The Company’s Board of Directors adopted the First Acceptance Corporation Employee Stock Purchase Plan (“ESPP”) whereby eligible employees may purchase shares of the Company’s common stock at a price equal to the lower of the closing market price on the first or last trading day of a six-month period. ESPP participants can authorize payroll deductions, administered through an independent plan custodian, of up to 15% of their salary to purchase semi-annually (June 30 and December 31) up to $25,000 of the Company’s common stock during each calendar year. The Company has reserved 600,000 shares of common stock for issuance under the ESPP. Employees purchased approximately 64,000, 37,000, and 31,000 shares during the years ended December 31, 2016, 2015 and 2014, respectively. Compensation expense attributable to subscriptions to purchase shares under the ESPP was $19 thousand, $12 thousand and $11 thousand for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016, 186,174 shares remain available for issuance under the ESPP.