Stock-Based Compensation

The following table summarizes nonvested common share and nonvested common share unit activity for the three months ended March 31, 2019:



	Time and Performance- Based Share Awards				Time-Based Share Awards				Share Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Share Units		Weighted Average Grant Date Fair Value
Outstanding at beginning of year	482		$	29.49	207		$	32.82	449		$	34.35
Granted	141		45.32		90		40.98		115		40.98
Vested	(209	)	17.01		(123	)	27.48		(184	)	30.71
Forfeited	—		N/A		—		N/A		(6	)	35.98
Outstanding at March 31, 2019	414		$	41.18	174		$	40.83	374		$	38.14

In February 2019, certain members of senior management were granted nonvested common shares under the Essent Group Ltd. 2013 Long-Term Incentive Plan ("2013 Plan") that were subject to time-based vesting. These awards vest in three equal installments on March 1, 2020, 2021 and 2022. In March 2019, certain members of senior management were granted nonvested common shares under the 2013 Plan that were subject to performance-based vesting. The performance-based share awards vest based upon our compounded annual book value per share growth percentage during a three-year performance period that commenced on January 1, 2019 and vest on March 1, 2022. The portion of these nonvested performance-based share awards that will be earned based upon the achievement of compounded annual book value per share growth is as follows:



Performance level	Compounded Annual Book Value Per Share Growth		Nonvested Common Shares Earned
	<14	%	0	%
Threshold	14	%	10	%
	15	%	35	%
	16	%	60	%
	17	%	85	%
Maximum	≥18	%	100	%

In the event that the compounded annual book value per share growth falls between the performance levels shown above, the nonvested common shares earned will be determined on a straight-line basis between the respective levels shown.

In connection with our incentive program covering bonus awards for performance year 2018, in February 2019, time-based share units were issued to certain employees that vest in three equal installments on March 1, 2020, 2021 and 2022. In May 2019, 17,024 time-based share units were granted to non-employee directors that vest one year from the date of grant.

The total fair value on the vesting date of nonvested shares or share units that vested was $22.0 million and $74.0 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $28.7 million of total unrecognized compensation expense related to nonvested shares or share units outstanding at March 31, 2019 and we expect to recognize the expense over a weighted average period of 2.3 years.

Employees have the option to tender shares to Essent Group to pay the minimum employee statutory withholding taxes associated with shares upon vesting. Common shares tendered by employees to pay employee withholding taxes totaled 189,965 in the three months ended March 31, 2019. The tendered shares were recorded at cost and included in treasury stock. All treasury stock has been cancelled as of March 31, 2019.

Compensation expense, net of forfeitures, and related tax effects recognized in connection with nonvested shares was as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Compensation expense	$	4,100	$	3,605
Income tax benefit	765		672