Incentive Compensation Plan
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Dec. 31, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Compensation Plan | Incentive Compensation Plan On January 20, 2009, the Board of Directors of the Company adopted with shareholder approval, the First Commonwealth Financial Corporation Incentive Compensation Plan. This plan allows for shares of common stock to be issued to employees, directors, and consultants of the Company and its subsidiaries as an incentive to aid in the financial success of the Company. The shares can be issued as options, stock appreciation rights, performance share or unit awards, dividend or dividend equivalent rights, stock awards, restricted stock awards, or other annual incentive awards. Up to 5,000,000 shares of stock can be awarded under this plan, of which, 4,330,038 shares are still eligible for awards. Restricted Stock The following provides detail on the restricted stock awards which were issued and outstanding in 2013, 2012 and 2011 in order to retain and attract key employees. The grant date fair value of the restricted stock awards is equal to the price of the Corporation’s common stock on grant date.
Compensation expense related to restricted stock was $509 thousand, $395 thousand and $249 thousand in 2013, 2012 and 2011, respectively. As of December 31, 2013, there was $2.2 million of unrecognized compensation cost related to unvested restricted stock awards granted. A summary of the status of First Commonwealth’s estimated unvested service-based restricted stock awards as of December 31 and changes for the years ended on those dates is presented below:
The following provides detail on restricted stock awards estimated to be granted on a performance award basis during 2013, 2012 and 2011. These plans were previously approved by the Board of Directors.
The following table summarizes the estimated unvested target share awards for the Plans as of December 31:
The estimated unvested target awards for the Plans have an estimated fair value of $8.82 per share for each year based on the closing price of Company stock as of December 31, 2013. Stock Option Plan First Commonwealth’s stock based compensation plan expired on October 15, 2005, and is described below. All of the exercise prices and related number of shares have been adjusted to reflect historical stock splits. The plan permitted the Executive Compensation Committee to grant options for up to 4.5 million shares of First Commonwealth’s common stock through October 15, 2005. The vesting requirements and terms of options granted were at the discretion of the Executive Compensation Committee. Options granted in 2005 vested in the year granted. All options expire ten years from the grant date. All equity compensation plans were approved by security holders. A summary of the status of First Commonwealth’s outstanding stock options as of December 31 and changes for the years ended on those dates is presented below:
The intrinsic value of stock options exercised during the years ended December 31, 2012 and 2011 was $1.41 and $1.17 per share. There were no options exercised during the year ended December 31, 2013. The following table summarizes information about the stock options outstanding at December 31, 2013:
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