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Share-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Under various share-based compensation plans and under terms established or modified by our Board or a committee thereof, we grant non-qualified options to purchase the Company’s common shares, as well as RSUs, to trustees, officers, and key employees.
On April 26, 2021, the Company’s Shareholders approved the 2021 Equity and Performance-Based Incentive Compensation Plan ("2021 Plan"), which authorizes an additional three million shares available for future issuance of equity-based awards. As of December 31, 2021, there were a total of 2,252,321 shares reserved for granting of future options and stock awards under the 2021 plan.
We recorded share-based compensation expense associated with stock options and RSUs in the various expense categories in the Consolidated Statements of Income as set forth in the following table. In addition, $3.9 million share-based compensation cost was capitalized as real estate facilities for the year ended December 31, 2021.
 For Years Ended December 31,
 202120202019
 (Amounts in thousands)
Self-storage cost of operations$20,544 $14,904 $12,090 
Ancillary cost of operations1,561 — — 
General and administrative37,760 18,586 13,871 
Total$59,865 $33,490 $25,961 

Stock Options
Stock options vest over 3 to 5 years, expire 10 years after the grant date, and have an exercise price equal to the closing trading price of our common shares on the grant date. New shares are issued for options exercised. Employees cannot require the Company to settle their award in cash.
For the years ended December 31, 2021, 2020, and 2019, we incurred share-based compensation cost for outstanding stock options of $25.1 million, $7.6 million and $5.0 million, respectively. The amounts for the years ended December 31, 2021 and 2020 include $4.5 million and $0.3 million, respectively, in connection with the Retirement Acceleration as discussed in Note 2 (none for 2019).
During 2021, we incurred share-based compensation cost of $1.5 million in connection with the initial 15,000 stock option awards issued to each of the five trustees who joined our Board in January 2021.
During 2021, 245,000 stock options were awarded where vesting is dependent upon meeting certain performance targets with respect to 2021, 2022, and 2023 and continued service through 2025. These awards contain a relative Total Shareholder Return modifier that will adjust the payout based on relative performance as compared to the market. As of December 31, 2021, these targets are expected to be met at 100% achievement. These options resulted in $8.1 million in related compensation cost during 2021.
During 2020, 770,000 stock options were awarded where vesting is dependent upon meeting certain performance targets with respect to 2020, 2021, and 2022 and continued service through 2024. As of December 31, 2021, these targets are expected to be met at 125% achievement, an increase from 100% as of December 31, 2020. $10.9 million and $3.0 million in related compensation cost was recorded during 2021 and 2020, respectively.
The stock options outstanding at December 31, 2021 have an aggregate intrinsic value (the excess, if any, of each option’s market value over the exercise price) of approximately $481.9 million and remaining average contractual lives of approximately six years. Total compensation cost related to nonvested stock options that has not yet been recognized is $23.3 million and is expected to be recognized as compensation cost over approximately three years on average. Exercisable stock options have an aggregate intrinsic value of approximately $251.3 million at December 31, 2021 and remaining average contractual lives of approximately four years.
Additional information with respect to stock options during 2021, 2020, and 2019 is as follows:
Service-BasedPerformance-BasedTotal
Number
of
Options		Weighted
Average
Exercise
Price
per Share		Number
of
Options		Weighted
Average
Exercise
Price
per Share		Number
of
Options		Weighted
Average
Exercise
Price
per Share
Options outstanding January 1, 2019
2,420,922 $201.31 — $— 2,420,922 $201.31 
Granted120,000 — 120,000 
Exercised(191,255)— (191,255)
Cancelled(10,000)— (10,000)
Options outstanding December 31, 2019
2,339,667 $204.53 — $— 2,339,667 $204.53 
Granted70,000 770,000 840,000 
Exercised(71,500)— (71,500)
Cancelled(107,000)(40,000)(147,000)
Options outstanding December 31, 2020
2,231,167 $204.60 730,000 $228.94 2,961,167 $210.59 
Granted (a)140,000 420,000 560,000 
Exercised(471,216)— (471,216)
Cancelled— (10,000)(10,000)
Options outstanding December 31, 2021
1,899,951 $208.16 1,140,000 $229.16 3,039,951 $216.04 
Options exercisable at December 31, 2021
1,464,411 $202.97 — $— 1,464,411 $202.97 
202120202019
Aggregate exercise date intrinsic value of options exercised during the year (in 000's)$44,613$3,433$11,848
Average assumptions used in valuing options with the Black-Scholes method:
Expected life of options in years, based upon historical experience555
Risk-free interest rate0.8%0.4%2.3%
Expected volatility, based upon historical volatility24.1%21.6%8.9%
Expected dividend yield2.9%3.8%3.6%
Average assumptions used in valuing options with market conditions with the Monte-Carlo simulation method:
Expected life of options in years, based upon historical experience5
Risk-free interest rate0.9%
Expected volatility, based upon historical volatility26.5%
Expected dividend yield2.9%
Average estimated value of options granted during the year$62.66$17.79$9.61
(a) Amount granted for performance-based stock options includes performance adjustments above target for options granted in 2020.
Restricted Share Units
RSUs generally vest over 5 to 8 years from the grant date. The grantee receives dividends for each outstanding RSU equal to the per-share dividends received by our common shareholders. We expense any dividends previously paid upon forfeiture of the related RSU. Upon vesting, the grantee receives new common shares equal to the number of vested RSUs, less common shares withheld in exchange for tax deposits made by the Company to satisfy the grantee’s statutory tax liabilities arising from the vesting.
The fair value of our RSUs is determined based upon the applicable closing trading price of our common shares.
For the years ended December 31, 2021, 2020, and 2019, we incurred share-based compensation cost for RSUs of $38.7 million, $25.9 million and $21.0 million, respectively. The amounts for the years ended December 31, 2021 and 2020 include $11.4 million and $5.4 million, respectively, in connection with the Retirement Acceleration as discussed in Note 2 (none for 2019).
During 2021, 37,000 RSUs were awarded where vesting is dependent upon meeting certain performance targets for 2021. As of December 31, 2021, these targets were met at 125% achievement. These RSUs resulted in $6.4 million in related compensation cost during 2021.
Remaining compensation cost related to RSUs outstanding at December 31, 2021 totals approximately $94.1 million and is expected to be recognized over the next 3 years on average. The following tables set forth relevant information with respect to restricted shares (dollar amounts in thousands):
202120202019
Number of
Restricted
Share Units		Weighted-Average Grant-Date
Fair Value		Number of
Restricted
Share Units		Weighted-Average Grant-Date
Fair Value		Number of
Restricted
Share Units		Weighted-Average Grant-Date
Fair Value
Restricted share units outstanding January 1,552,788 $218.11 619,150 $213.29 717,696 $210.69 
Granted (a)189,318 $321.17 110,755 $222.27 97,140 $217.35 
Vested(138,420)$(216.63)(140,089)$(200.88)(160,329)$(204.04)
Forfeited(32,864)$(221.32)(37,028)$(215.08)(35,357)$(213.62)
Restricted share units outstanding December 31,570,822 $251.95 552,788 $218.11 619,150 $213.29 

202120202019
Amounts for the year (in 000's, except number of shares):
Fair value of vested shares on vesting date$37,430 $31,076 $33,769 
Cash paid for taxes upon vesting in lieu of issuing common shares$13,069 $10,518 $12,162 
Common shares issued upon vesting81,325 91,627 96,479 
(a)Amount includes adjustments above target for performance-based RSUs granted in fiscal year 2021 based on achievement of performance criteria.