Stock Based Compensation And Employee Benefits

12 Months Ended

Dec. 31, 2011

Stock Based Compensation And Employee Benefits [Abstract]

Stock Based Compensation And Employee Benefits

NOTE 11: STOCK BASED COMPENSATION AND EMPLOYEE BENEFITS

We maintain the RAIT Financial Trust 2008 Incentive Award Plan (the "Incentive Award Plan"). The maximum aggregate number of common shares that may be issued pursuant to the Incentive Award Plan is 1,500,000. As of December 31, 2011, 246,549 common shares are available for issuance under this plan.

On January 24, 2009, 19,020 phantom unit awards were redeemed for common shares. These phantom units were fully vested at the time of redemption.

On March 5, 2009, the compensation committee awarded 161,333 phantom units, valued at $242 using our closing stock price of $1.50 on that date, to various non-executive employees. The awards generally vest over three-year periods.

On June 25, 2009, the compensation committee awarded 66,667 phantom units, valued at $238 using our closing stock price of $3.57 on that date, to two non-executive employees. The awards generally vest over four-year periods.

On January 26, 2010, the compensation committee awarded 500,000 phantom units, valued at $1,905 using our closing stock price of $3.81 on that date, to our executive officers. Half of these awards vested immediately and the remainder vested on January 26, 2011. On January 26, 2010, the compensation committee awarded 166,667 phantom units, valued at $635 using our closing stock price of $3.81 on that date, to our non-executive officer employees. These awards generally vest over three-year periods.

During the years ended December 31, 2011, 2010 and 2009, there were 340,649, 24,475, and 7,268, respectively, phantom units redeemed for common shares and 72,029, and 12,333 phantom units forfeited during the years ended December 31, 2010 and 2009, respectively. There were no phantom units forfeited during the year ended December 31, 2011. At December 31, 2011 and 2010, there were 416,767 and 930,457, respectively, phantom units outstanding.

As of December 31, 2011 and 2010, the deferred compensation cost relating to unvested awards was $181 and $723, respectively, relating to phantom units and restricted stock that had a weighted average remaining vesting period of 1.1 and 1.5 years, respectively.

On January 24, 2012, the compensation committee awarded 2,172,000 stock appreciation rights, or SARs, valued at $6,091 based on a Black-Scholes option pricing model at the date of grant, to our executive officers and non-executive officer employees. The SARs vest over a three-year period and may be exercised between the date of vesting and January 24, 2017, the expiration date of the SARs.

Stock Options

We have granted to our officers, trustees and employees options to acquire common shares. The vesting period is determined by the compensation committee and the option term is generally ten years after the date of grant. As of December 31, 2011 and 2010, there were 116,800 and 168,800 options outstanding.

A summary of the options activity of the Incentive Award Plan is presented below.

	2011				2010				2009
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding, January 1,		168,800	$	22.50		168,800	$	22.50		178,800		$	21.84
Expired		52,000		21.87		0		0.00		(10,000	)		10.75
Exercised		0		0		0		0.00		0			0.00
Outstanding, December 31,		116,800	$	22.78		168,800	$	22.50		168,800		$	22.50
Options exercisable at December 31,		116,800				168,800				168,800

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding at December 31, 2011		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Outstanding at December 31, 2010		Weighted Average Exercise Price
$13.65		0		0 years	$	0.00		7,000	$	13.65
$19.21 – 19.85		20,000		0.4 years		19.50		20,000		19.50
$21.81 – 26.40		96,800		1.7 years		23.46		141,800		23.36
		116,800		1.5 years	$	22.78		168,800	$	22.50

We did not grant options during the three years ended December 31, 2011.

During the years ended December 31, 2011, 2010 and 2009, we recorded compensation expense of $541, $2,949, and $3,830, respectively, associated with our stock based compensation.

Employee Benefits

401(k) Profit Sharing Plan

We maintain a 401(k) profit sharing plan (the RAIT 401(k) Plan) for the benefit of our eligible employees. The RAIT 401(k) Plan offers eligible employees the opportunity to make long-term investments on a regular basis through salary contributions, which are supplemented by our matching cash contributions and potential profit sharing payments. We provide a 4% cash match of the employee contributions and may pay an additional 2% of eligible compensation as discretionary cash profit sharing payments. Any matching contribution made by RAIT pursuant to the RAIT 401(k) Plan vests 33% per year of service.

During the years ended December 31, 2011, 2010 and 2009, we recorded $482, $424, and $296 of contributions which is included in compensation expense on the accompanying statement of operations.