As of December 31, 2022, the Company has an Omnibus Incentive Plan under which 1,000,000 shares are reserved for restricted stock, performance shares and stock options grants for employees, as well as stock grants for directors. The plan was approved in 2021 and replaced all prior stock-based plans except for shares and options previously issued under those plans. As of December 31, 2022 and 2021 there were 938,147 and 994,119 shares, respectively, of the Company’s Common Stock available for grant under the 2021 Omnibus Incentive Plan. The Company recognizes the cost of stock-based awards in net earnings for all of its stock-based compensation plans on a straight-line basis over the service period of the awards. The following sections describe the four types of grants in more detail.

The Company estimates the fair value of its option awards using the Black-Scholes option-pricing formula, and records compensation expense for stock options ratably over the stock option grant’s vesting period. Stock option compensation expense recognized by the Company for the years ended December 31, 2022, 2021 and 2020 was $0.3 million, $0.4 million and $0.4 million, respectively. No new stock options were granted in 2022 and 2021.

The following table summarizes the transactions of the Company’s stock option plans for the three-year period ended December 31, 2022:


	Number of shares			Weighted- average exercise price
Options outstanding - December 31, 2019		337,332		$	31.82
Options granted		41,807			62.76
Options exercised		(55,716	)		18.99
Options forfeited		(7,229	)		50.19
Options outstanding - December 31, 2020		316,194		$	37.75
Options exercised		(88,932	)		22.89
Options outstanding - December 31, 2021		227,262		$	43.56
Options exercised		(25,986	)		27.04
Options forfeited		(4,529	)		60.82
Options outstanding - December 31, 2022		196,747		$	45.35
Exercisable options —
December 31, 2020		235,829		$	30.82
December 31, 2021		170,484			38.31
December 31, 2022		163,316			42.23

The following assumptions were used for valuing options granted in the year ended December 31, 2020:


Per share fair value of options granted during the period	$	17.49
Risk-free interest rate		0.64	%
Dividend yield		1.05	%
Volatility factor		30.0	%
Weighted-average expected life in years		7.0

The expected life was based on historical exercise behavior and the projected exercise of unexercised stock options. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected dividend yield was based on the expected annual dividends divided by the grant date market

value of the Company’s Common Stock. The expected volatility was based on the historical volatility of the Company’s Common Stock.

The weighted-average contractual life remaining for options outstanding as of December 31, 2022 was 4.3 years.

The following table summarizes the aggregate intrinsic value related to options exercised, outstanding and exercisable as of and for the years ended December 31:


	2022		2021		2020
	(In thousands)
Exercised	$	2,175	$	7,085	$	3,054
Outstanding		12,529		14,316		17,805
Exercisable		10,910		11,635		14,913

As of December 31, 2022, the unrecognized compensation cost related to stock options was approximately $0.4 million, which will be recognized over a weighted average period of 1.8 years.

Non-employee directors receive an annual stock award of the Company’s Common Stock under the 2021 Omnibus Incentive Plan. The annual stock award for 2022 was $64,000. The Company values stock grants for directors at the closing price of the Company’s stock on the day the grant was awarded. The Company records compensation expense for this plan ratably over the annual service period beginning May 1. Director stock compensation expense recognized by the Company for the years ended December 31, 2022 was $0.5 million compared to $0.3 million in 2021 and $0.4 million in 2020. As of December 31, 2022, the unrecognized compensation cost related to the director stock award that is expected to be recognized over the remaining four months is estimated to be approximately $0.2 million.

The Company periodically issues nonvested shares of the Company's Common Stock to certain eligible employees. The Company values restricted stock on the closing price of the Company's stock on the day the grant was awarded. The Company records compensation expense for this plan ratably over the vesting periods. Restricted stock compensation expense recognized by the Company for the year ended December 31, 2022 was $1.6 million compared to $1.4 million in 2021 and $1.0 million in 2020.

The fair value of nonvested shares is determined based on the market price of the shares on the grant date.


	Shares			Fair value per share
Nonvested at December 31, 2019		64,480		$	48.21
Granted		20,758			64.19
Vested		(25,044	)		39.87
Forfeited		(2,645	)		54.35
Nonvested at December 31, 2020		57,549		$	57.33
Granted		17,430			99.90
Vested		(16,528	)		49.31
Forfeited		(1,384	)		58.68
Nonvested at December 31, 2021		57,067		$	72.62
Granted		21,637			97.41
Vested		(23,302	)		66.87
Forfeited		(4,327	)		86.53
Nonvested at December 31, 2022		51,075		$	84.85

As of December 31, 2022, there was $2.2 million of unrecognized compensation cost related to nonvested restricted stock that is expected to be recognized over a weighted average period of 1.8 years.

Beginning in 2021, the Company periodically issues performance share units to certain eligible employees. Recipients of performance share grants are eligible to receive shares of our common stock depending upon the level of our total adjusted return on invested capital (ROIC) and adjusted free cash flow conversion as measured over a three-year performance period. The number of shares earned for awards granted in 2021 and 2022 will range from 50% to 200% of the granted number of performance shares for the three-year performance period ending December 31, 2023 and December 31, 2024, respectively, and will vest, to the extent earned, in the fiscal quarter following the end of the applicable three-year performance period. Performance share compensation expense recognized by the Company for the year ended December 31, 2022 was $1.2 million compared to $0.6 million in 2021.

A summary of performance share activity for the two years ended December 31 is as follows:


	Performance Shares			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2020		—		$	—
Granted		14,748			100.37
Adjustment for expected performance results		7,374			100.37
Nonvested at December 31, 2021		22,122		$	100.37
Granted		16,870			97.62
Adjustment for expected performance results		6,746			97.62
Forfeited		(2,892	)		99.43
Nonvested at December 31, 2022		42,846		$	98.92

As of December 31, 2022, there was $2.4 million of unrecognized compensation cost related to nonvested performance share units that is expected to be realized over a weighted average period of 1.8 years.