Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

On May 17, 2019, the shareholders approved the Hanger, Inc. 2019 Omnibus Incentive Plan (the “2019 Plan”). The 2019 Plan authorizes the issuance of (a) up to 2,025,000 shares of Common Stock, plus (b) 243,611 shares available for issuance under the Hanger, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”). Upon approval of the 2019 Plan, the 2016 Plan was no longer available for future awards.

As of March 31, 2022, there were 1,609,030 unvested restricted stock awards outstanding. This was comprised of 1,166,910 employee service-based awards with a weighted average grant date fair value of $20.65 per share, 392,764 employee performance-based awards with a weighted average grant date fair value of $20.57 per share, and 49,356 director service-based awards with a weighted average grant date value of $25.53 per share. As of March 31, 2022, there were 275,783 outstanding options exercisable with a weighted average exercise price of $12.77 and average remaining contractual term of 4.8 years.

We recognized approximately $2.9 million and $3.2 million of share-based compensation expense for the three months ended March 31, 2022 and 2021, respectively. Share-based compensation expense, net of forfeitures, relates to restricted stock units, performance-based restricted stock units, and stock options.