Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2016

5. Stock-Based Compensation Plans

Our 2007 Stock Incentive Plan (the 2007 Plan) was adopted on May 24, 2007. Under this 2007 Plan, a total of 2,000,000 shares are authorized for stock based compensation available in the form of either restricted stock or stock options. On May 28, 2015, the Company’s shareholders authorized an increase in the number of shares of Common Stock available for grant by 800,000 shares bringing the total to 2,800,000 shares authorized. 2,371,962 shares of restricted stock were granted under the 2007 Stock Incentive Plan by March 31, 2016. Of this amount, 152,534 shares of restricted stock were cancelled and returned to the pool of shares which could be granted under the 2007 Stock Incentive Plan resulting in a net number of 580,572 shares which were available as of March 31, 2016 for future issuance under the 2007 Incentive Plan. The fair value of the restricted stock awards equaled the stock price at the date of grants. The following table summarizes restricted stock activity during the year ended December 31, 2015 and the three months ended March 31, 2016.


		Shares
Restricted stock at December 31, 2014		525,356
Granted in 2015 (vesting over 3 years)		125,000
Granted in 2015 (vesting over 4 years)		5,000
Granted in 2015 (vesting on first anniversary from date of issuance)		16,440
Vested in 2015		(275,201)
Restricted stock at December 31, 2015		396,595
Granted in 2016 (vesting over 2 years)		20,000
Granted in 2016 (vesting over 3 years)		75,000
Granted in 2016 (vesting over 4 years)		13,250
Vested in 2016		(61,083)
Cancelled in 2016		(17,166)
Restricted stock at March 31, 2016		426,596

All cancelled shares have reverted to the share reserve and are available for issuance at a later date, in accordance with the 2007 Plan.

Our accounting policy is to recognize the associated expense of such awards on a straight-line basis over the vesting period. At March 31, 2016, the stock compensation expense related to the restricted stock awards that will be recognized over the average remaining vesting period of 2.0 years totals $5.9 million. At March 31, 2016, the intrinsic value of unvested restricted stock awards is $9.2 million. The 2007 Plan terminates on May 24, 2017.