Executive Stock Plans And Stock-Based Compensation

12 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Executive Stock Plans And Stock-Based Compensation

EXECUTIVE STOCK PLANS AND STOCK-BASED COMPENSATION

Executive Stock Plans

The Company’s shareholders have approved executive stock plans under which officers, directors, and employees of the Company may receive grants and awards of common stock, restricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”), stock appreciation rights (“SARs”), incentive stock options, and non-qualified stock options. Currently, grants are outstanding under the 1997 Executive Stock Plan, the 2002 Executive Stock Plan, the 2007 Stock Incentive Plan, and the 2017 Stock Incentive Plan. Together, these plans are referred to in this disclosure as the “Plans.” Up to 1,000,000 shares may be issued

under the 2017 Stock Incentive Plan, with no specific share limit for any of the award types. New awards may no longer be issued under the 1997, 2002, and 2007 Plans.

The Company’s practice is to award grants of stock-based compensation to officers at the first regularly-scheduled meeting of the Compensation Committee of the Board of Directors (the “Compensation Committee”) in the fiscal year following the public release of the Company’s financial results for the prior year. In recent years, the Compensation Committee has awarded only grants of RSUs and PSUs. Outside directors automatically receive restricted stock units following each annual meeting of shareholders.

RSUs awarded prior to fiscal year 2022 vest 5 years after the grant date and those awarded after fiscal year 2022 vest 3 years after the grant date. After vesting RSUs are paid out in shares of common stock. Under the terms of the RSU awards, grantees receive dividend equivalents in the form of additional RSUs that vest and are paid out on the same date as the original RSU grant. The PSUs vest 3 years from the grant date, are paid out in shares of common stock at the vesting date, and do not carry rights to dividends or dividend equivalents prior to vesting. Shares ultimately paid out under PSU grants are dependent on the achievement of predetermined performance measures established by the Compensation Committee and can range from zero to 150% of the stated award. RSUs awarded to outside directors prior to fiscal year 2020 vest 3 years after the grant date and those granted after fiscal year 2020 vest 1 year after the grant date. Additionally, restricted stock vests upon the individual’s retirement from service as a director.

RSUs, Restricted Stock, and PSUs

The following table summarizes the Company’s RSU, restricted stock, and PSU activity for fiscal years 2021 through 2023:

	RSUs			Restricted Stock			PSUs
	Shares	Weighted-Average Grant Date Fair Value		Shares	Weighted-Average Grant Date Fair Value		Shares	Weighted-Average Grant Date Fair Value
Fiscal Year Ended March 31, 2021:
Unvested at beginning of year	335,936	$	57.89	21,250	$	41.58	140,200	$	55.73
Granted	103,829	46.27		—	—		65,135	34.33
Vested	(97,297)	54.11		(9,650)	41.24		(40,410)	60.37
Forfeited	—	—		—	—		(3,778)	57.83
Unvested at end of year	342,468	55.44		11,600	41.86		161,147	46.20
Fiscal Year Ended March 31, 2022:
Granted	93,564	56.18		—	—		48,650	47.95
Vested	(86,488)	54.33		—	—		(50,242)	57.12
Forfeited	—	—		—	—		(1,555)	57.12
Unvested at end of year	349,544	55.86		11,600	41.86		158,000	43.16
Fiscal Year Ended March 31, 2023:
Granted	100,105	60.89		—	—		48,315	54.46
Vested	(67,239)	62.39		—	—		(37,040)	50.16
Forfeited	—	—		—	—		(9,260)	50.16
Unvested at end of year	382,410	$	56.03	11,600	$	41.86	160,015	$	44.55

Shares granted and vested in the above table include dividend equivalents on RSUs and any shares awarded above the base grant under the performance provisions of PSUs. Shares forfeited or canceled include any reductions from the base PSU grant under those same performance provisions. The fair values of RSUs, restricted stock, and PSUs are based on the market price of the common stock on the grant date.

Stock-Based Compensation Expense

Fair value expense for stock-based compensation is recognized ratably over the period from grant date to the earlier of (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For employees who are already eligible to retire at the date an award is granted, the total fair value of the award is recognized as expense at the date of grant. For the fiscal years ended March 31, 2023, 2022, and 2021, total stock-based compensation expense and the related income tax benefit recognized were as follows:

	Fiscal Year Ended March 31,
	2023		2022		2021
Total stock-based compensation expense	$	8,419	$	6,186	$	6,106
Income tax benefit recorded on stock-based compensation expense	$	1,899	$	1,389	$	1,282

At March 31, 2023, the Company had $4.9 million of unrecognized compensation expense related to stock-based awards, which will be recognized over a weighted-average period of approximately 0.9 years.