Employee Stock Plans

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Employee Stock Plans

EMPLOYEE STOCK PLANS

The 2019 Stock Omnibus Incentive Plan (the “2019 Plan”), which expires in 2029, permits the grant of various forms of stock-based awards. The terms and vesting schedules for the stock-based awards vary by type and date of grant. A maximum of 3.1 million stock options, restricted stock or other stock-based compensation awards may be granted. Shares subject to award under the 2019 Plan may be either authorized but unissued shares of our common stock or treasury shares. Refer to the Annual Report on Form 10-K for the year ended December 31, 2020 for further discussion on the 2019 Plan.

Compensation expense for stock-based awards recognized during the three months ended March 31, 2021 and 2020 was as follows (in thousands):

	Three Months Ended March 31,
	2021		2020
Stock options	$	301	$	421
Restricted stock units and awards	1,381		1,171
Performance share units	1,173		431
Total stock-based compensation expense	$	2,855	$	2,023

Stock Options and Restricted Stock Units and Awards – The following table presents our stock options and restricted stock units and awards activity during the three months ended March 31, 2021 (in thousands, except per share data):

	Stock Options			Restricted Stock Units and 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	1,820	$	15.02	461	$	21.03
Granted	—	$	—	140	$	27.56
Exercised or released	(397)	$	11.10	(99)	$	22.38
Expired or canceled	—	$	—	—	$	—
Outstanding at March 31, 2021	1,423	$	16.12	502	$	22.58
Exercisable at March 31, 2021	978	$	15.19

(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 an earnings per share target (weighted 70%) and 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, 2021 (in thousands, except per share data):

	Performance Share Units	Weighted Average Grant-Date Fair Value Per Unit
Outstanding at beginning of year	307	$	22.18
Granted	140	$	27.56
Vested	—	$	—
Adjustments for performance results	—	$	—
Canceled	—	$	—
Outstanding at March 31, 2021	447	$	23.86