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STOCK-BASED PLANS
9 Months Ended
Sep. 30, 2014
STOCK-BASED PLANS  
STOCK-BASED PLANS

NOTE 12                  STOCK-BASED PLANS

Our stock based plans are described, and informational disclosures are provided, in the Notes to the Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2013.

Stock Options

The following table summarizes our stock option plan:

 

Stock Options

 

Weighted
Average Exercise
Price

 

Stock Options outstanding at January 1, 2014

965,440

$

64.57

Granted

105,000

146.00

Forfeited

(32,700

)

85.27

Stock Options outstanding at September 30, 2014

1,037,740

$

72.16

 

In February 2014, certain employees were granted stock options, half of which cliff vest on December 31, 2018. The remaining options also cliff vest on December 31, 2018, however, the amount of options are diminished if certain prescribed shareholder return hurdles are not met. Option grantees must be employed by the Company on the vesting date to be eligible to receive the award.

Restricted Stock

Restricted stock awards issued under The Howard Hughes Corporation 2010 Incentive Plan provide that shares awarded may not be sold or otherwise transferred until restrictions have lapsed as established by the Compensation Committee of our Board of Directors. For the three and nine months ended September 30, 2014, compensation expense of $1.1 million and $2.9 million, respectively, is included in general and administrative expense on our Condensed Consolidated Statements of Operations related to restricted stock awards. The balance of unamortized restricted stock awards as of September 30, 2014 was $11.4 million, which is expected to be expensed over a weighted-average period of 3.5 years.

The following table summarizes restricted stock activity:

 

Restricted
Stock

 

Weighted
Average Grant
Date Fair Value

 

Restricted stock outstanding at January 1, 2014

122,332

$

75.21

Granted

61,750

126.38

Vested

(11,394

)

97.72

Restricted Stock outstanding at September 30, 2014

172,688

$

92.02

 

In addition to the granting of restricted stock to certain members of management, we award restricted stock to our non-employee directors as part of their annual retainer. The restriction on the non-employee director shares lapse in May of each year. In February 2014, certain employees were granted restricted stock, half of which cliff vest on December 31, 2018. The remaining restricted stock awards also cliff vest on December 31, 2018, however, the amount of restricted stock awards are diminished if certain prescribed shareholder return hurdles are not met. Generally, upon termination of employment, the restricted shares that have not vested are forfeited.