Share-Based Compensation

3 Months Ended

Nov. 28, 2015

NOTE 3 – SHARE-BASED COMPENSATION

The cost of our share-based compensation plans is included in selling, general, and administrative expenses in the accompanying condensed consolidated income statements. The total cost of our share-based compensation plans was as follows for the periods presented (in thousands):



		Quarter Ended
		November 28,		November 29,
		2015		2014
Performance awards	$	625	$	298
Unvested share awards		112		75
Employee stock purchase plan		26		29
	$	763	$	402

During the quarter November 28, 2015, we issued approximately 18,000 shares of our common stock to employees for various share-based compensation awards. The following is a description of developments in our share-based compensation plans during the quarter ended November 28, 2015.

Performance Awards

On November 12, 2015, the Organization and Compensation Committee of the Board of Directors granted new performance-based equity awards for our executive officers and members of senior management. A total of 231,276 shares may be awarded to the participants based on six individual vesting conditions that are divided into two performance measures, trailing four-quarter adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) and increased sales of Organizational Development Suite (OD Suite) offerings as shown below. The OD Suite is defined as Leadership, Productivity, and Trust practice sales.



	Adjusted EBITDA				OD Suite Sales
	Award				Award
	Goal	Number of	Tranche		Goal	Number of	Tranche
	(thousands)	Shares	Status		(thousands)	Shares	Status
$	36,000	53,964	not vested	$	107,000	23,128	not vested
$	40,000	53,964	not vested	$	116,000	23,128	not vested
$	44,000	53,964	not vested	$	125,000	23,128	not vested
		161,892				69,384

These performance awards have a maximum life of six years and compensation expense is recognized as we determine it is probable that the shares will vest. Adjustments to compensation expense to reflect the timing of and the number of shares expected to be awarded will be made on a cumulative basis at the date of the adjustment.

Compensation expense recognized during the quarter ended November 28, 2015 for performance awards includes expense related to awards granted in previous periods for which the performance targets are probable of being achieved.

Employee Stock Purchase Plan

We have an employee stock purchase plan (ESPP) that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of the calendar month in each fiscal quarter. During the quarter ended November 28, 2015, we issued 11,025 shares of our common stock to participants in the ESPP.