Note 15 - Stock-based Compensation

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

15. Stock-based compensation

Company stock option plan

The Company has a stock option plan for certain officers and key full-time employees of the Company and its subsidiaries, other than its CEO. Options are granted at the market price for the underlying shares on the date of grant. Each option vests over a

four

-year term, expires

five

years from the date granted and allows for the purchase of

one

Subordinate Voting Share. All Subordinate Voting Shares issued are new shares. As at

December

31,

2016,

there were

980,750

options available for future grants.

Grants under the Company’s stock option plan are equity-classified awards. Stock option activity for the years ended

December

31,

2016,

2015

and

2014

was as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual life (years)		Aggregate intrinsic value
Shares issuable under options - December 31, 2013		1,687,050		$	26.25
Granted		343,000			49.57
Exercised		(558,150	)		19.26
Forfeited		(8,000	)		31.28
Shares issuable under options - December 31, 2014		1,463,900		$	34.35
Granted		698,500			36.61
Exercised		(699,400	)		20.09
Forfeited		(22,500	)		38.71
Shares issuable under options - December 31, 2015		1,440,500		$	28.65
Granted		395,000			32.94
Exercised		(144,150	)		19.83
Forfeited		(88,500	)		32.14
Shares issuable under options - December 31, 2016		1,602,850		$	30.31		2.8	$	11,305
Options exercisable - End of year		510,975		$	25.88		1.9	$	5,777

The Company incurred stock-based compensation expense related to these awards of

$3,279

during the year ended

December

31,

2016

(2015

-

$4,253;

2014

-

$4,077).

As at

December

31,

2016,

the range of option exercise prices was

$15.57

to

$43.57

per share. Also as at

December

31,

2016,

the aggregate intrinsic value and weighted average remaining contractual life for in-the-money options vested and expected to vest were

$11,305

and

2.6

years, respectively.

The following table summarizes information about option exercises during the years ended

December

31,

2016,

2015

and

2014:

	2016		2015		2014
Number of options exercised		144,150		699,400		558,150
Aggregate fair value	$	5,222	$	35,516	$	27,973
Intrinsic value		2,364		21,463		17,223
Amount of cash received		2,858		14,053		10,750
Tax benefit recognized	$	-	$	91	$	5,856

As at

December

31,

2016,

there was

$3,845

of unrecognized compensation cost related to non-vested awards which is expected to be recognized over the next

four

years. During the year ended

December

31,

2016,

the fair value of options vested was

$2,998

(2015

-

$2,589;

2014

-

$3,750).

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model, utilizing the following weighted average assumptions:

	2016			2015			2014
Risk-free rate		1.1	%		1.0	%		0.9	%
Expected life in years		4.75			4.75			4.75
Expected volatility		33.0	%		28.6	%		25.5	%
Dividend yield		0.3	%		0.2	%		0.8	%
Weighted average fair value per option granted	$	9.64		$	11.91		$	10.52

The risk-free interest rate is based on the implied yield of a

zero

-coupon US Treasury bond with a term equal to the option’s expected term. The expected life in years represents the estimated period of time until exercise and is based on historical experience. The expected volatility is based on the historical prices of the Company’s shares over the previous

four

years.

Subsidiary stock option plan

Prior to

June

1,

2015,

Old FSV had a stock option plan at its Commercial Real Estate Services subsidiary. In conjunction with the Spin-off, the Company exchanged the redeemable non-controlling interests and stock options at this subsidiary for

1,997,956

Subordinate Voting Shares of the Company. Upon the exchange, the Company reclassified

$16,622

of stock-based compensation liability and

$14,670

of redeemable non-controlling interests to shareholders’ equity and also recognized

$35,400

of stock-based compensation expense. Of the

1,997,956

Subordinate Voting Shares issued,

1,187,697

remain subject to contractual retention and escrow periods extending to

June

1,

2018.