Subsequent Events |
12 Months Ended | ||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||
Subsequent Events | SUBSEQUENT EVENTS Stock-Based Compensation On February 25, 2016, the Compensation Committee of the Board of Directors approved long-term incentive awards to be granted on March 4, 2016. On March 4, 2016, 121,868 RSUs, 86,829 NQOs and TSR awards at a target value of $1.5 million were granted to employees of Vectrus. The RSUs vest in one-third annual installments on the first, second and third anniversaries of the grant date. The fair value of the RSUs is determined based on the closing price of Vectrus common stock on the date of grant, which was $20.06 per share. The NQOs vest in one-third cumulative annual installments on the first, second and third anniversaries of the grant date and expire 10 years from the grant date. The option exercise price is $20.06, the closing price of Vectrus common shares on the grant date. The fair value of each NQO grant was estimated at $7.06, determined on the date of grant using the Black-Scholes valuation model. Stock-based compensation expense will be recognized ratably over the vesting period of the awards. The TSR awards are subject to four separate performance periods during the overall three-year performance period of January 1, 2016 to December 31, 2018 as follows:
Payment, if any, is based on the Company's TSR performance relative to that of the Aerospace and Defense Companies in the S&P 1500 Index following the end of the three-year performance period. Depending on the Company's performance during the three-year performance period, payment can range from 0% to 200% of the target value. At the end of the three-year performance period, any payment earned with respect to the TSR awards will be settled in cash. |