Share-Based Payments

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Payments

At December 31, 2022, the Company had one equity compensation plan (the “Plan”), which is shareholder approved, that provides for the granting of share options, share units and shares to eligible employees and directors up to 3,050,000 shares.

Share Units: Restricted share units provide for an interest in Company common stock to the recipient, with such units held in escrow until certain conditions are met. Share units provide for vesting requirements that include time-based, performance-based, or market-based conditions. Recipients of restricted units do not pay any cash consideration to the Company for the units and the holders of the restricted units do not have voting rights. For share units issued under the equity incentive plan approved in 2018, the holder accrues dividends, which are paid out when the units vest and the shares are issued. The fair value of time-based and performance-based units is equal to the fair market value of the Company’s common stock on the grant date. The fair value of market-based units is estimated on the grant date using the Monte Carlo simulation model.

A summary of changes in the Company’s nonvested RSUs and related information for the year ended December 31, 2022 is presented below:


	Units	Weighted Average Grant-Date Fair Value




Nonvested at December 31, 2020	111,901	$	32.85
Granted	86,713	$	47.11
Vested	(12,994)	$	33.48
Forfeited	(3,050)	$	33.71
Nonvested at December 31, 2021	182,570	$	40.05
Granted	136,928	$	35.80
Vested	(22,566)	$	39.04

Nonvested at December 31, 2022	296,932	$	38.16

Share Awards: Restricted share awards provide for the immediate issuance of shares of Company common stock to the recipient, with such shares held in escrow until certain conditions are met. Share awards provide for vesting requirements that include time-based, performance-based, or market-based conditions. Recipients of restricted shares do not pay any cash consideration to the Company for the shares and the holders of the restricted shares have voting rights. For share awards issued under the equity incentive plan approved in 2018, the holder accrues dividends, which are paid out when the shares vest. The fair value of time-based and performance-based share awards is equal to the fair market value of the Company’s common stock on the grant date. The fair value of market-based share awards is estimated on the grant date using the Monte Carlo simulation model.

A summary of changes in the Company’s nonvested RSAs and related information for the years ended December 31, 2022, 2021 and 2020 is presented below:


	Shares	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2020	889,017	$	36.96
Granted	299,007	$	33.64
Vested	(231,805)	$	35.01
Forfeited	(90,588)	$	36.50
Nonvested at December 31, 2020	865,631	$	36.38
Granted	257,298	$	44.83
Vested	(324,222)	$	37.57
Forfeited	(75,696)	$	36.76
Nonvested at December 31, 2021	723,011	$	38.57
Granted	262,571	$	35.32
Vested	(335,115)	$	38.58
Forfeited	(109,104)	$	33.39
Nonvested at December 31, 2022	541,363	$	37.89

As of December 31, 2022, there was $14.5 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.7 years. The total fair value, as measured on the date of vesting, of shares vested during the years ended December 31, 2022, 2021, and 2020 was $13.8 million, $12.6 million, and $8.1 million, respectively.

The Company expenses awards of shares on a straight-line basis over the related vesting term of the award. For the years ended December 31, 2022, 2021 and 2020, the Company recognized pre-tax share-based compensation expense of $16.2 million, $14.9 million and $10.7 million, respectively.