XML 37 R17.htm IDEA: XBRL DOCUMENT v3.24.0.1
Stock Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Based Compensation Stock Based Compensation
Annually, the Compensation Committee of Piedmont's Board of Directors has granted deferred stock award units to certain employees at its discretion. Employee awards typically vest ratably over three or four 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 between these 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 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. The number of shares earned, if any, are determined at the end of the multi-year performance period (or upon termination) and vest immediately. In the event that a participant's employment is terminated prior to the end of the multi-year period, in certain circumstances the participant may be entitled to a pro-rated award based on Piedmont's TSR relative performance as of the termination date. The grant date fair value of the multi-year performance share awards is estimated using the Monte Carlo valuation method and is recognized ratably over the performance period.
A rollforward of Piedmont's equity based award activity for the year ended December 31, 2023 is as follows:

SharesWeighted-Average Grant Date Fair Value
Unvested and Potential Stock Awards as of December 31, 2022
729,424 $19.21 
Deferred Stock Awards Granted
987,094 $9.60 
Performance Stock Awards Granted424,922 $12.37 
Change in Estimated Potential Share Awards based on TSR Performance
(573,729)$14.48 
Performance Stock Awards Vested
(90,064)$25.83 
Deferred Stock Awards Vested
(366,466)$14.87 
Deferred Stock Awards Forfeited
(16,884)$11.26 
Unvested and Potential Stock Awards as of December 31, 2023
1,094,297 $11.35 

The following table provides additional information regarding stock award activity during the years ended 2023, 2022, and 2021 (in thousands except for per share amounts):

202320222021
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period
$9.60 $16.30 $17.24 
Total Grant Date Fair Value of Deferred Stock Vested
During the Period
$5,448 $6,414 $5,242 
Share-based Liability Awards Paid During the Period (1)
$— $5,481 $3,610 

(1)Amounts reflect the issuance of performance share awards related to the 2019-21 and 2018-20 Performance Share Plans during the years ended December 31, 2022, and 2021, respectively.
A detail of Piedmont’s outstanding stock awards and programs as of December 31, 2023 is as follows:

Date of grantType of Award
Net  Shares
Granted (1)
Grant
Date Fair
Value		Vesting Schedule
Unvested and Potential Shares as of December 31, 2023
May 3, 2019Deferred Stock Award26,385 
(2)
$21.04 
Of the shares granted, 20% vested or will vest on July 1, 2020, 2021, 2022, 2023 and 2024, respectively.
9,505 
February 17, 2021Deferred Stock Award211,595 $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.
54,088 
February 18, 2021Fiscal Year 2021-2023 Performance Share Program— $23.04 Shares awarded, if any, will vest immediately upon determination of award in 2024.— 
(3)
February 10, 2022Deferred Stock Award170,369 $16.85 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 10, 2023, 2023, and 2025, respectively.
106,472 
February 17, 2022Fiscal Year 2022-2024 Performance Share Program— $17.77 Shares awarded, if any, will vest immediately upon determination of award in 2025.91,136 
(3)
February 13, 2023Deferred Stock Award392,991 $10.55 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 13, 2024, 2025, 2026, respectively.
314,629 
February 23, 2023Fiscal Year 2023-2025 Performance Share Program— $12.37 Shares awarded, if any, will vest immediately upon determination of award in 2026.— 
(3)
February 23, 2023Deferred Stock Award413,433 $9.47 
Of the shares granted, 25% vested or will vest on February 23, 2024, 2025, 2026, and 2027 respectively.
396,707 
May 10, 2023Deferred Stock Award-Board of Directors121,760 $6.57 
Of the shares granted, 100% will vest on the earlier of the 2024 Annual Meeting or May 10, 2024.
121,760 
Total1,094,297 
(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 December 31, 2023.
(2)Includes a special, one-time deferred stock award to Piedmont's Chief Executive Officer effective July 1, 2019, the date of his promotion to the position, which vests in ratable installments over a five year period beginning July 1, 2020.
(3)Estimated based on Piedmont's cumulative TSR for the respective performance period through December 31, 2023. 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 years ended December 31, 2023, 2022, and 2021, Piedmont recognized approximately $8.1 million, $8.8 million and $11.0 million of compensation expense related to stock awards, of which approximately $8.1 million, $7.7 million and $9.7 million related to the amortization of unvested shares and potential stock awards and the fair value adjustment for liability awards, respectively. During the year ended December 31, 2023, a total of 275,740 shares (net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations) were issued to employees and independent directors. As of December 31, 2023, approximately $11.4 million of unrecognized compensation cost related to unvested and potential stock awards remained, which Piedmont will record in its consolidated statements of operations over a weighted-average vesting period of approximately one year.