Stock Based Compensation

3 Months Ended

Dec. 31, 2012

Stock Based Compensation

Stock Based Compensation

Note 7 – Stock Based Compensation

The board of directors’ quarterly compensation was adjusted to 375 restricted shares in April 2011 due to the one for two stock dividend distributed by the Company (see Note 13 for further information). The shares awarded become unrestricted upon a director leaving the board.  Directors who also serve as officers of Corning are not compensated for their service as directors.  Since these shares are restricted, in recording compensation expense, the expense accrued is 25% less than the closing price of the stock on the day the stock was awarded. Management of the Company believes this discount is reasonable for thinly traded stock such as that of the Company. The Company did not discount the value of the stock paid to the directors who resigned from the board since those shares became unrestricted when held by a non-affiliate for at least six months. On November 9, 2010, directors were issued compensatory shares for service from July 2010 through September 30, 2010. On April 29, 2011, shares were issued for service for the quarters ended December 31, 2010 and March 31, 2011. Joseph Mirabito, William Mirabito and John Williamson III were each paid 247 shares of common stock for the quarter ended December 31, 2010 because they served for a portion of that quarter. On February 22, 2012, shares were issued for service for the quarters ended June 30, 2011, September 30, 2011 and December 31, 2011. On October 10, 2012, shares were issued for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012. Information regarding shares of stock awarded to directors in fiscal 2013 is summarized below.

	Fees Earned or Paid	10/10/2012
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $11.70/Share)	($)	($)
6 Directors	-	6,750	78,975	78,975

At its regularly scheduled meeting on December 11, 2012, the Compensation Committee of the Board of Directors of the Company made restricted stock awards of 600 shares each to the five officers of the Company in lieu of salary increases. Each restricted stock award vested 300 shares immediately and 300 shares on December 12, 2013 if the officer is still employed by the Company or one of its subsidiaries or affiliates on that date. Each award is subject to the terms and conditions of a restricted stock award agreement and the Company’s Amended and Restated 2007 Stock Plan. Information regarding the shares of stock issued is summarized below.

	Fees Earned or Paid	12/17/12
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $16.00/Share)	($)	($)
5 Officers	-	3,000	48,000	48,000

In addition, the Board of Directors authorized the sale of 600 shares of the Company’s common stock to Leatherstocking Gas Company, LLC. Leatherstocking Gas Company, LLC has assigned these shares to Carl T. Hayden in compensation for past service as a director of the Company’s joint venture affiliate, Leatherstocking Gas Company, LLC. These shares were issued in January 2013 and will be recognized next quarter.