Stock-based Payments

6 Months Ended

Jun. 30, 2017

8. Stock-based Payments

On May 18, 2017, the Company’s shareholders approved the First Amended and Restated 2014 Long-Term Incentive Plan (“2014 Plan”), which provides for an aggregate of 6.4 million shares of our common stock that may be issued to employees and non-employee directors. Awards under the 2014 Plan may be in the form of stock options (including incentive stock options that meet the requirements of Section 422 of the Internal Revenue Code and non-statutory stock options), restricted stock, restricted stock units, stock appreciation rights and performance units.

The fair value of the restricted shares granted is determined based on the most recent trading price of the stock as of the grant date. The fair value of each stock option grant is established on the grant date using the Black-Scholes option pricing model.

A summary of the Company’s restricted shares and stock options activity is shown below:


		Weighted-Average			Weighted-Average
	Restricted	Grant Date Fair Value		Stock	Grant Date Fair Value
June 30, 2017	Shares	per Restricted Share		Options	per Stock Option

Nonvested at January 1, 2017	278,050	$	11.52	1,502,963	$	2.73
Granted	249,121		14.36	—		—
Vested	(37,305)		11.37	(1,119,629)		3.00
Nonvested at June 30, 2017	489,866		12.98	383,334		1.93


		Weighted-Average			Weighted-Average
	Restricted	Grant Date Fair Value		Stock	Grant Date Fair Value
June 30, 2016	Shares	per Restricted Share		Options	per Stock Option

Nonvested at January 1, 2016	144,362	$	10.05	1,855,918	$	3.22
Granted	211,383		12.00	575,000		1.93
Vested	(11,028)		10.88	(927,955)		3.22
Nonvested at June 30, 2016	344,717		11.22	1,502,963		2.73

Compensation expense for all share-based compensation was $1.3 million for the three months ended June 30, 2017 and $1.0 million for the three months ended June 30, 2016. Compensation expense for all share-based compensation was $2.4 million for the six months ended June 30, 2017 and $1.9 million for the six months ended June 30, 2016.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

State National Companies, Inc. 10-Q