Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation

Note 5. Stock-Based Compensation

Stock-based compensation granted under the Company’s stock plans is expensed in tranches over the vesting period. Options and non-performance based grants generally vest equally over a three or four year period and the options have a maximum term of ten years. Certain non-performance based grants vest over five years with one-third vesting in each of the third, fourth and fifth years. The Company’s performance based share grants generally consist of two types of awards. The restricted stock units issued in 2011 and after will cliff vest over a three year period, with 50% vesting in full, and 50% dependent on the rate of compound annual growth in book value per share for the three years immediately prior to the vesting date, with actual shares that vest ranging between 150% to 0% of that portion of the original award. Those performance based restricted stock units issued prior to 2011 generally vest over five years with one-third vesting in each of the third, fourth and fifth years, dependent on the rolling three-year average return on equity based on the three years prior to the year in which the vesting occurs, with actual shares that vest ranging between 150% to 0% of the original award.

The amounts charged to expense for stock-based compensation for the three and nine months ended September 30, 2012 and 2011 are presented in the following table:

	Three Months Ended September 30,					Nine Months Ended September 30,
In thousands	2012		2011			2012		2011
Restricted stock units	$	1,818	$	775		$	5,004	$	2,254
Directors restricted stock grants(1)		170		64			290		184
Employee stock purchase plan		27		1			42		124
Stock appreciation rights(2)		—		(47	)		—		(100	)
Stock options		—		—			—		—
Total stock-based compensation	$	2,015	$	793		$	5,336	$	2,462

(1)    -	Relates to non-employee directors serving on the Parent Company’s Board of Directors, all of whom have been elected by the Company’s stockholders, as well as non-employee directors serving on NUAL’s Board of Directors.
(2)    -	All outstanding stock appreciation rights were exercised during 2011. The Company has no current plans to issue stock appreciation rights under the 2005 Amended and Restated Stock Incentive Plan.