NOTE 13 – STOCK-BASED COMPENSATION PLANS
The Company grants stock options and stock equivalent units
(“SEUs”) from time to time as a long-term performance
incentive. In certain cases the grants are subject to performance
conditions such as the Company’s stock price. Where
performance conditions apply the Monte Carlo simulation model is
used to determine the fair values. Otherwise the Black-Scholes
model is used to determine the fair values.
Stock option plans
The following table summarizes the transactions of the
Company’s stock option plans for the six months ended
June 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Options |
|
|
Weighted
Average
Exercise
Price |
|
|
Weighted
Average
Grant-Date
Fair Value |
|
Outstanding at December 31, 2016
|
|
|
570,994 |
|
|
$ |
20.38 |
|
|
$ |
21.68 |
|
Granted - at discount
|
|
|
79,664 |
|
|
$ |
0.00 |
|
|
$ |
61.39 |
|
- at market value
|
|
|
18,843 |
|
|
$ |
70.60 |
|
|
$ |
16.84 |
|
Exercised
|
|
|
(82,323 |
) |
|
$ |
12.36 |
|
|
$ |
24.01 |
|
Forfeited
|
|
|
(3,427 |
) |
|
$ |
14.91 |
|
|
$ |
22.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at June 30, 2017
|
|
|
583,751 |
|
|
$ |
20.65 |
|
|
$ |
26.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2017, there were 44,543 stock options that were
exercisable, of which 9,421 had performance conditions
attached.
The stock option compensation cost for the first six months of 2017
was $2.2 million (2016 – $1.9 million). The total
intrinsic value of options exercised in the first six months of
2017 was $2.0 million (2016 – $1.6 million).
The total compensation cost related to non-vested stock options not yet
recognized at June 30, 2017 was $7.9 million and this
cost is expected to be recognized over the weighted-average period
of 2.21 years.
Stock equivalent units
The following table summarizes the transactions of the
Company’s SEUs for the six months ended June 30,
2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of SEUs |
|
|
Weighted
Average
Exercise
Price |
|
|
Weighted
Average
Grant-Date
Fair Value |
|
Outstanding at December 31, 2016
|
|
|
279,815 |
|
|
$ |
3.77 |
|
|
$ |
33.40 |
|
Granted - at discount
|
|
|
180,249 |
|
|
$ |
0.00 |
|
|
$ |
62.76 |
|
- at market value
|
|
|
5,530 |
|
|
$ |
70.60 |
|
|
$ |
16.84 |
|
Exercised
|
|
|
(33,104 |
) |
|
$ |
5.63 |
|
|
$ |
26.94 |
|
Forfeited
|
|
|
(12,775 |
) |
|
$ |
0.00 |
|
|
$ |
32.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at June 30, 2017
|
|
|
419,715 |
|
|
$ |
3.00 |
|
|
$ |
46.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2017 there were 54,509 SEUs that are exercisable,
of which 49,141 had performance conditions attached.
The charges for SEUs are spread over the life of the award subject
to a revaluation to fair value each quarter. The revaluation may
result in a charge or a credit to the income statement in the
quarter dependent upon our share price and other performance
criteria.
The SEU compensation cost for the first six months of 2017 was
$2.5 million (2016 – $0.0 million). The total intrinsic
value of SEUs exercised in the first six months of 2017 was
$1.1 million (2016 - $1.2 million).
The weighted-average remaining vesting period of non-vested SEUs is 2.14 years.