Employee Stock Plans (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Awards

Compensation expense for stock-based awards recognized during the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Stock options	$	581	$	615	$	1,114	$	1,403
Restricted stock units and awards	1,388		1,266		4,214		3,761
Performance share units	936		604		3,031		1,601
Total stock-based compensation expense	$	2,905	$	2,485	$	8,359	$	6,765

Schedule of Stock Options, Restricted Stock Units and Awards, and Performance Share Units Award Activity

The following table presents our stock options and restricted stock units and awards activity during the nine months ended September 30, 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	50	$	32.64	174	$	28.62
Exercised or released	(635)	$	11.25	(246)	$	20.00
Expired or canceled	—	$	—	—	$	—
Outstanding at September 30, 2021	1,235	$	17.68	389	$	25.07
Exercisable at September 30, 2021	1,087	$	17.43

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

The following table presents our PSU award activity during the nine months ended September 30, 2021 (in thousands, except per share data):

	Performance Share Units	Weighted Average Grant-Date Fair Value Per Unit (1)
Outstanding at beginning of year	307	$	22.18
Granted	140	$	27.56
Vested	—	$	—
Adjustments for performance results	—	$	—
Canceled	—	$	—
Outstanding at September 30, 2021	447	$	23.86

(1)Represents weighted average market value of the performance share units; PSUs are granted at no cost to the recipients.

Schedule of Fair Value Option Award Weighted Average Assumptions Used

The following weighted average assumptions were utilized:

	Nine Months Ended September 30, 2021
Expected volatility (1)	27.49%
Expected option life (years) (2)	4.71
Risk-free interest rate (3)	0.74%
Expected dividend yield (4)	—%

(1) The expected volatility assumption was determined based upon the historical volatility of CBIZ's stock price using daily price intervals.

(2) The expected option life was determined based upon CBIZ's historical data using a midpoint scenario, which assumes all options are exercised halfway between the expiration date and the weighted average time it takes the option to vest.

(3) The risk-free interest rate assumption was based upon zero-coupon U.S. treasury bonds with a term approximating the expected life of the respective options.

(4) The expected dividend yield assumption was determined in view of CBIZ's historical and estimated dividend payouts. CBIZ does not expect to change its dividend payout policy in the foreseeable future.