Employee Share Plans

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Share Plans

Note 12. Employee Share Plans

The CBIZ, Inc. 2014 Stock Incentive Plan (the “2014 Plan”), which expires in 2024, provides for the grant of restricted stock awards, stock options and performance awards. The terms and vesting schedules for the share-based awards vary by type and date of grant. A maximum of 9.6 million stock-based compensation awards may be granted. Shares subject to award under the 2014 Plan may be either authorized but unissued shares of our common stock or treasury shares. Compensation expense for stock-based awards recognized during the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Stock options	$	519	$	518
Restricted stock awards		929		919
Performance share units		34		—
Total stock-based compensation expense	$	1,482	$	1,437

Stock Options and Restricted Stock Awards – The following table presents our stock options and restricted stock award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	Stock Options					Restricted Stock Awards
	Number of Options			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value (1)
Outstanding at beginning of year		3,622		$	11.97		632		$	15.35
Granted		—		$	—		173		$	19.82
Exercised / Vested		(189	)	$	7.40		(63	)	$	14.31
Expired or cancelled		—		$	—		—		$	—
Outstanding at March 31, 2019		3,433		$	12.22		742		$	16.48
Exercisable at March 31, 2019		1,882		$	9.40

(1) Represents weighted average market value of the shares; awards are granted at no cost to the recipients.

Performance Share Units (“PSUs”) – PSUs are earned based on our financial performance over a contractual term of three years and the associated expense is recognized over that period based on the fair value of the award. A three-year cliff vesting schedule of the PSUs is dependent upon the Company’s performance relative to pre-established goals based on achievement of an earnings per share target (weighted 70%) and achievement of total growth in revenue (weighted 30%). The fair value of PSUs is calculated using the market value of a share of our common stock on the date of grant. For performance achieved above specified levels, the recipient may earn additional shares of stock, not to exceed 200% of the number of PSUs initially granted.

The following table presents our PSU award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	PSUs		Fair Value
Outstanding at beginning of year	$	—	$	—
Granted		173	$	19.82
Vested		—	$	—
Expired or cancelled		—	$	—
Outstanding at March 31, 2019	$	173	$	19.82