Stock-Based Compensation and Similar Arrangements

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation and Similar Arrangements

Stock-Based Compensation and Similar Arrangements

The Company provides stock-based compensation to employees, non-employee directors, consultants and advisors under the Company’s 2006 Long-Term Incentive Plan (“2006 Plan”). The 2006 Plan allows the flexibility to grant or award stock options, stock appreciation rights, restricted stock, unrestricted stock, stock units including restricted stock units and performance awards to eligible persons.

Stock options. The Company recognized stock-based compensation expense for non-qualified stock options (“NQs”) of $0.2 million and $0.6 million for the three months ended March 31, 2023 and 2022, respectively, in general and administrative expense. At March 31, 2023, the Company had 108,280 stock options outstanding with a weighted-average exercise price of $115.55.

Restricted stock awards and restricted stock units. The Company recognized stock-based compensation expense for restricted stock awards ("RSAs") and restricted stock units ("RSUs") of $0.9 million and $1.1 million for the three months ended March 31, 2023 and 2022, respectively, in general and administrative expense. The Company had 11,518 unvested RSAs and 66,383 unvested RSUs outstanding at March 31, 2023 with a weighted-average grant date fair value of $97.61 and $107.56, respectively.

Performance-based share awards. The Company grants performance-based restricted stock units (PRSUs) to align management’s compensation with the Company's financial performance and other operational objectives and to retain key employees. Awards granted under this category are based on the achievement of various targeted metrics as defined by the Plan. Stock-based compensation expense for PRSUs is recognized over the 3-year vesting period under the straight-line attribution method. The Company recorded an immaterial amount of stock-based compensation expense for the three months ended March 31, 2023 and recorded $0.3 million of stock-based compensation expense for the three months ended March 31, 2022, with the remaining portion expected to be recognized over the remainder of the 3-year requisite service period. The Company had 36,601 unvested PRSUs outstanding at March 31, 2023 with a weighted-average grant date fair value of $112.82.

Employee Stock Purchase Plan

During the fourth quarter of 2022, the Company began offering an Employee Stock Purchase Plan ("ESPP") with 1,000,000 shares of Common Stock reserved for purchase pursuant to the Plan for eligible employees. The shares of Common Stock may be newly issued shares, treasury shares or shares acquired on the open market. Under the terms of the plan, eligible employees may designate a dollar value or percentage of their compensation to be withheld through payroll deductions, up to a maximum of $25,000 in each plan year, for the purchase of common stock at a discounted rate of 85% of the lower of the market price on the first or last trading day of the offering period. As of March 31, 2023, 997,060 shares remain available for future issuance under this plan.