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Stock Based Compensation
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation Stock Based Compensation
The Compensation Committee of Piedmont's Board of Directors has granted deferred stock award units to eligible employees at its discretion based upon the previous year's financial results measured against various board approved performance metrics. Most employee awards vest ratably over three years. In addition, Piedmont's independent directors receive an annual grant of deferred stock award units for services rendered and such awards vest over a one year service period.

Certain management employees' long-term equity incentive program is split equally between the deferred stock award units described above and a multi-year performance share program whereby actual awards are contingent upon Piedmont's total stockholder return ("TSR") performance relative to the TSR of a peer group of office REITs. The target incentives for these certain employees, as well as the peer group to be used for comparative purposes, are predetermined by the board of directors, advised by an outside compensation consultant. None of the shares potentially earned are awarded until the end of the multi-year performance period (or upon termination) and vest upon award and are pro-rated if certain terminations occur before the end of the multi-year period. The grant date fair value of the multi-year performance share awards is estimated using the Monte Carlo valuation method.
A rollforward of Piedmont's equity based award activity for the three months ended March 31, 2022 is as follows:
SharesWeighted-Average Grant Date Fair Value
Unvested and Potential Stock Awards as of December 31, 2021
1,099,181 $23.97 
Deferred Stock Awards Granted
258,288 $16.85 
Decrease in Estimated Potential Share Awards based on TSR Performance
(224,220)$24.59 
Performance Stock Awards Vested
(267,744)$29.43 
Deferred Stock Awards Vested
(176,196)$18.84 
Deferred Stock Awards Forfeited
(2,144)$18.20 
Unvested and Potential Stock Awards as of March 31, 2022
687,165 $20.30 

The following table provides additional information regarding stock award activity during the three months ended March 31, 2022 and 2021, respectively (in thousands, except per share amounts):

Three Months Ended
March 31,
2022		March 31,
2021
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period
$16.85 $17.15 
Total Grant Date Fair Value of Deferred Stock Vested During the Period
$3,319 $2,452 
Share-based Liability Awards Paid During the Period (1)
$5,481 $3,610 

(1)Reflects the value of stock earned pursuant to the 2019-21 and 2018-20 Performance Share Plans during the three months ended March 31, 2022 and 2021, respectively.
A detail of Piedmont’s outstanding stock awards and programs as of March 31, 2022 is as follows:
Date of grantType of Award
Net Shares
Granted (1)
Grant
Date Fair
Value		Vesting ScheduleUnvested Shares
May 3, 2019Deferred Stock Award250,556 $21.04 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively.
71,693 
February 19, 2020Deferred Stock Award142,185 $24.41 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively.
42,513 
March 19, 2020Fiscal Year 2020-2022 Performance Share Program— $25.83 Shares awarded, if any, will vest immediately upon determination of award in 2023.124,759 
(2)
February 17, 2021Deferred Stock Award239,795 $17.15 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 17, 2022, 2023, and 2024, respectively.
131,465 
February 18, 2021Fiscal Year 2021-2023 Performance Share Program— $23.04 Shares awarded, if any, will vest immediately upon determination of award in 2024.88,405 
(2)
May 11, 2021Deferred Stock Award-Board of Directors35,077 $17.96 
Of the shares granted, 100% will vest on May 11, 2022.
35,077 
February 10, 2022Deferred Stock Award232,407 $16.85 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 10, 2023, 2024, and 2025, respectively.
193,253 
February 17, 2022Fiscal Year 2022-2024 Performance Share Program— $17.77 Shares awarded, if any, will vest immediately upon determination of award in 2025.— 
(2)
Total687,165 

(1)Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through March 31, 2022.
(2)Estimated based on Piedmont's cumulative TSR for the respective performance period through March 31, 2022. Share estimates are subject to change in future periods based upon Piedmont's relative TSR performance compared to its peer group of office REITs.

During the three months ended March 31, 2022 and 2021, Piedmont recognized approximately $2.8 million and $3.3 million, respectively, of compensation expense related to stock awards, of which $1.7 million and $2.0 million is related to the amortization of unvested and potential stock awards and fair value adjustment for liability awards. During the three months ended March 31, 2022, 254,167 shares (net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations) were issued to employees and independent directors. As of March 31, 2022, approximately $11.6 million of unrecognized compensation cost related to unvested and potential stock awards remained, which Piedmont will record in its consolidated statements of income of operations over a weighted-average vesting period of approximately one year.