Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Share-based Compensation [Abstract]

Stock-Based Compensation

6. Stock-Based Compensation

2005 Incentive Compensation Plan

On October 16, 2013 our stockholders approved the Second Amended and Restated Saga Communications, Inc. 2005 Incentive Compensation Plan (the “Second Restated 2005 Plan”). The 2005 Incentive Compensation Plan was first approved by stockholders in 2005 and replaced our 2003 Stock Option Plan (the “2003 Plan”). The 2005 Incentive Compensation Plan was re-approved by stockholders in 2010 (the “Amended and Restated Saga Communications, Inc. 2005 Incentive Compensation Plan”). The changes in the Second Restated 2005 Plan (i) increases the number of authorized shares by 233,334 shares of Common Stock, (ii) extends the date for making awards to September 6, 2018, (iii) includes directors as participants, (iv) targets awards according to groupings of participants based on ranges of base salary of employees and/or retainers of directors, (v) requires participants to retain 50% of their net annual restricted stock awards during their employment or service as a director, and (vi) includes a clawback provision. The Second Restated 2005 plan allows for the granting of restricted stock, restricted stock units, incentive stock options, nonqualified stock options, and performance awards to eligible employees and non-employee directors.

Stock-Based Compensation

For the nine months ended September 30, 2012, we had $22,000 of total compensation expense related to stock options. This expense is included in corporate general and administrative expenses in our results of operations. The associated future income tax benefit recognized for the nine months ended September 30, 2012 was $9,000. The stock options were fully expensed at March 31, 2012, therefore there was no compensation expense related to stock options for the three months ended September 30, 2012 or the three and nine months ended September 30, 2013.

The following summarizes the stock option transactions for the 2005 and 2003 Plans for the nine months ended September 30, 2013:

					Weighted Average
					Remaining		Aggregate
	Number of		Weighted Average		Contractual Term		Intrinsic
	Options		Exercise Price		(Years)		Value
Outstanding at January 1, 2013		260,660	$	34.69		3.0	$	1,253,039
Exercised		(7,778)		29.55
Expired		(15,299)		57.66
Outstanding at September 30, 2013		237,583	$	33.38		2.3	$	2,798,915
Exercisable at September 30, 2013		237,583	$	33.38		2.3	$	2,798,915

All stock options were fully vested at December 31, 2012. 

The following summarizes the restricted stock transactions for the nine months ended September 30, 2013:

		Weighted Average
		Grant Date Fair
	Shares	Value
Outstanding at January 1, 2013	5,531	$	17.97
Vested	(5,531)		17.97
Non-vested and outstanding at September 30, 2013	—	$	—

For the nine months ended September 30, 2013 and the three and nine months ended September 30, 2012, we had $16,000, $25,000 and $85,000, respectively, of total compensation expense related to restricted stock-based compensation arrangements. This expense is included in corporate general and administrative expenses in our results of operations. The associated tax benefit recognized for the nine months ended September 30, 2013 and the three and nine months ended September 30, 2012, was $7,000, $10,000 and $35,000, respectively. The restricted stock was fully expensed at March 31, 2013, therefore there was no compensation expense related to restricted stock for the three months ended September 30, 2013.