Equity

3 Months Ended

Mar. 31, 2012

Equity [Abstract]

Equity

H. Stockholders' Equity

Shares outstanding were 26.6 million on March 31, 2012, 26.8 million on December 31, 2011, and 27.1 million on March 31, 2011.

Dividends

	Payment	Record
	Date	Date	Amount
Three months ended March 31, 2012	March 27, 2012	March 13, 2012	$    0.04
Three months ended March 31, 2011	March 29, 2011	March 15, 2011	$    0.03

Voting Rights

The holders of Class A Common stock ("Class A Shares") and Class B Common stock ("Class B Stock") have identical rights except that (i) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share on all matters to be voted on by shareholders in general, and (ii) holders of Class A Stock are not eligible to vote on matters relating exclusively to Class B Stock and vice versa.

Stock Award and Incentive Plan

The Company maintains two Plans approved by the shareholders, which are designed to provide incentives which will attract and retain individuals key to the success of GAMCO through direct or indirect ownership of our common stock.  Benefits under the Plans may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents and other stock or cash based awards.  A maximum of 1.5 million shares of Class A Stock have been reserved for issuance under each of the Plans by a committee of the Board of Directors responsible for administering the Plans ("Compensation Committee").  Under the Plans, the committee may grant RSAs and either incentive or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price that the committee may determine.  Options granted under the Plans vest 75% after three years and 100% after four years from the date of grant and expire after ten years.  Restricted stock award ("RSA") shares granted under the Plans vest 30% after three years and 100% after five years.

On January 3, 2012, the Company approved the granting of 105,300 RSA shares at a grant date fair value of $43.49 per share.  On January 15, 2011, and February 9, 2011, the Company approved the granting of 193,900 RSA shares and 3,300 RSA shares, respectively, at a grant date fair value of $48.85 per share and $45.77 per share, respectively.  As of March 31, 2012, December 31, 2011 and March 31, 2011, there were 375,000 RSA shares, 275,600 RSA shares and 293,800 RSA shares, respectively, outstanding that were previously issued at an average weighted grant price of $45.14, $45.56 and $45.54, respectively.  All grants of the RSA shares were recommended by the Company's Chairman, who did not receive a RSA, and approved by the Compensation Committee.  This expense, net of forfeitures, is recognized over the vesting period for these awards which is 30% over three years from the date of grant and 70% over five years from the date of grant.  During the vesting period, dividends to RSA holders are held for them until the RSA vesting dates and are forfeited if the grantee is no longer employed by the Company on the vesting dates.  Dividends declared on these RSAs, less estimated forfeitures, are charged to retained earnings on the declaration date.

For the three months ended March 31, 2012 and March 31, 2011, we recognized stock-based compensation expense of $0.9 million and $0.6 million, respectively.  Actual and projected stock-based compensation expense for RSA shares and options for the years ended December 31, 2011 through December 31, 2016 (based on awards currently issued or granted) is as follows ($ in thousands):

		2011		2012		2013		2014		2015		2016
	Q1	$	577	$	871	$	870	$	625	$	494	$	175
	Q2		686		870		848		588		462		128
	Q3		655		870		805		588		399		128
	Q4		670		870		805		588		399		128
Full Year		$	2,588	$	3,481	$	3,328	$	2,389	$	1,754	$	559

The total compensation costs related to non-vested RSAs and options not yet recognized is approximately $10.6 million as of March 31, 2012.  There were no options exercised in either the three month period ended March 31, 2012 or March 31, 2011.

Stock Repurchase Program

In March 1999, GAMCO's Board of Directors established the Stock Repurchase Program to grant management the authority to repurchase shares of our Class A Common Stock.  On May 6, 2011, our Board of Directors authorized an incremental 500,000 shares to be added to the current buyback authorization.  For the three months ended March 31, 2012 and March 31, 2011, the Company repurchased 224,733 shares and 161,588 shares, respectively, at an average price per share of $44.35 and $43.91, respectively.  From the inception of the program through March 31, 2012, 7,568,785 shares have been repurchased at an average price of $40.74 per share.  At March 31, 2012, the total shares available under the program to be repurchased in the future were 348,634.