Compensation Plans

12 Months Ended

Dec. 31, 2020

The Company and its subsidiaries have profit sharing plans in which substantially all employees participate. The plans provide for minimum annual contributions of 5% of eligible compensation; contributions above the minimum are discretionary and vary with each participating operating unit's profitability. Employees become eligible to participate in the plan on the first day of the calendar quarter following the first full calendar quarter after the employee's date of hire provided the employee has completed 250 hours of service during the calendar quarter. The plans provide that 40% of the contributions vest immediately and that the remaining 60% vest at varying percentages based upon years of service. Profit sharing expense was $48 million, $47 million and $42 million in 2020, 2019 and 2018, respectively.

The Company has a long-term incentive compensation plan ("LTIP") that provides for compensation to key executives based on the growth in the Company's book value per share over a five year period.

The following table summarizes the outstanding LTIP awards as of December 31, 2020:


	Units Outstanding	Maximum Value	Inception to date earned through December 31, 2020 on outstanding units
2016 grant	190,000	19,000,000	17,732,700
2017 grant	202,750	20,275,000	13,509,233
2018 grant	208,750	20,875,000	10,007,475
2019 grant	224,250	22,425,000	5,497,623
2020 grant	225,500	22,550,000	2,271,701

The following table summarizes the LTIP expense for each of the three years ended December 31, 2020:


(In thousands)	2020		2019		2018

2013 grant	$	—	$	—	$	(1,124)
2014 grant	—		(558)		3,227
2015 grant	(168)		3,319		5,170
2016 grant	3,176		3,548		5,148
2017 grant	2,914		3,432		4,700
2018 grant	2,776		3,310		4,317
2019 grant	2,490		3,068		—
2020 grant	2,276		—		—
Total	$	13,464	$	16,119	$	21,438