Share-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

The Company’s outstanding stock incentive awards have been granted under two incentive plans – the 2012 Stock Incentive Plan and the 2019 Stock Incentive Plan, which was amended and restated in May 2023 (collectively, the “2019 Plan”). During the nine months ended September 30, 2023, we granted options to purchase 385,500 shares of common stock under the 2019 Plan.

The amendment and restatement of the 2019 Plan, which was approved by stockholders in May 2023, increased the number of shares of common stock authorized for issuance under the 2019 Plan from 3,000,000 to 6,000,000 and added the ability of the Company to award shares of restricted stock and restricted stock units subject to such conditions and restrictions as the Company may determine. In May 2023, 21,000 shares of restricted stock were issued to executive officers with a grant date fair value of $49.30 per share based on the market value of our common stock on the date of grant. The restricted stock will vest over five years, with 20% vesting on each anniversary of the date of grant. The restricted stock awards contain non-forfeitable rights to dividends or dividend equivalents during the vesting periods.

The weighted average fair value of options granted during the nine months ended September 30, 2023 and 2022 was $10.56 and $11.92 per option, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


	2023	2022
Dividend yield	6.9%	7.0%
Expected volatility	39.0%	49.3%
Expected lives	2.9 years	2.9 years
Risk-free interest rate	4.56%	1.75%

The following table summarizes our outstanding stock options:


			Weighted Average
	Number	Weighted Average	Remaining
	of Shares	Exercise Price	Contractual Life (Years)
Options outstanding, January 1, 2022	1,652,505	$78.10
Options granted	718,000	$53.62
Options exercised	(56,832)	$53.41
Options forfeited	(23,000)	$62.33
Options expired	(74,498)	$77.93
Options outstanding, September 30, 2022	2,216,175	$70.97

Exercisable at September 30, 2022	1,695,155	$74.73

Options outstanding, January 1, 2023	2,216,175	$70.97
Options granted	385,500	$54.73
Options exercised	(5,166)	$53.41
Options forfeited	(61,168)	$66.44
Options expired	(88,170)	$64.33
Options outstanding, September 30, 2023	2,447,171	$68.80	2.51

Exercisable at September 30, 2023	2,078,827	$71.40	2.25

At September 30, 2023, there was no intrinsic value of stock options outstanding and exercisable. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2023 and 2022 was $1.23 per share or less than $0.1 million and $4.94 per share or $0.1 million, respectively.

The following is a summary of share-based compensation expense, net of any forfeitures, included in “General and administrative expenses” in the Condensed Consolidated Statements of Income ($ in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Share-based compensation components:
Restricted stock expense	$	119	$	—	$	191	$	—
Stock option expense	747		1,065		3,549		7,576
Total share-based compensation expense	$	866	$	1,065	$	3,740	$	7,576

As of September 30, 2023, unrecognized compensation expense totaling $2.7 million associated with stock-based awards is expected to be recognized over the following periods: remainder of 2023 - $0.9 million, 2024 - $1.3 million, 2025 - $0.3 million, 2026 - $0.1 million, and thereafter - $0.1 million.