STOCK INCENTIVE PLAN

3 Months Ended

Mar. 31, 2024

STOCK INCENTIVE PLAN

STOCK INCENTIVE PLAN

9.          STOCK INCENTIVE PLAN

Effective August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (the “2016 Plan”). Pursuant to the 2016 Plan, the Board of Directors may grant up to 800,000 shares under share-based awards to officers, directors, and employees. The 2016 Plan provides for the issuance of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, performance shares, performance units and other stock-based awards or any combination thereof. The 2016 Plan was approved by the shareholders of the Company at its Annual Meeting on May 26, 2017. The 2016 Plan will terminate on August 1, 2026.

Restricted Stock Units

Restricted stock units, once granted, are subject only to service conditions. Executive Officer awards vest ratably over three to five years (depending on award granted) and non-employee director awards cliff-vest after one year.

The following table summarizes all transactions related to restricted stock units under the 2016 Plan:

	Restricted Stock Units	Weighted Average Grant Date Fair Value
Nonvested at December 31, 2023	146,832	$	33.98
Granted	108,490		45.07
Vested (1)	(32,000)		29.95
Forfeited	—		—
Nonvested at March 31, 2024	223,322	$	36.33

(1) Vested shares include 7,680 shares vested and withheld for employee taxes.

The following table provides additional data related to restricted share unit activity:

(in thousands, except weighted average period in years)		2024
Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax	$	7,248
Weighted average period in years over which restricted share and share unit cost is expected to be recognized (in years)		2.1
Total fair value of shares vested during the year	$	958

Stock-based compensation expense is included as a component of selling, general and administrative expenses in the condensed consolidated statement of income.