STOCK-BASED COMPENSATION
On May 14, 2025, the shareholders of the Company approved the 2025 Omnibus Incentive Plan (the “2025 Incentive Plan”) which authorizes 2,190,570 shares for issuance under the plan. Awards granted under the 2025 Incentive Plan may be in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, other share-based awards, and cash awards to directors, officers, and other eligible employees of the Company.
The Company recognizes all share-based awards to eligible employees based upon their grant date fair value. The Company’s policy is to recognize expense for awards that have service conditions only subject to graded vesting using the straight-line attribution method. In addition, the Company’s policy is to estimate expected forfeitures on share-based awards. Total stock-based compensation expense was $11.5 million, $11.3 million, and $11.8 million in the years ended December 31, 2025, 2024 and 2023, respectively, and is included in Cost of sales, General and administrative expenses, and Selling expenses within the Consolidated Statements of Operations. The amount of compensation cost related to non-vested restricted stock not yet recognized was approximately $10.9 million at December 31, 2025, for which the weighted average remaining life was approximately 1.9 years. There were no non-vested stock options at December 31, 2025.
Restricted Stock
Restricted stock awards vest over a period of one to three years and may be based on the achievement of specific financial performance metrics and market conditions. Awards based strictly on time-based vesting and those awards with performance metrics are valued at the market price on the date of grant. The fair values of the awards that contain market conditions are estimated using a Monte Carlo simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility, risk-free rates of return, and correlation matrix. Restricted stock awards are generally forfeitable in the event of terminated employment prior to vesting.
A summary of all restricted stock activity during 2025 is as follows:
| | | | | | | | | | | |
| Number of
Shares | | Weighted
Average
Grant Date
Fair Value |
| Restricted Stock Outstanding at December 31, 2024 | 1,176,312 | | | $ | 25.60 | |
| Granted | 1,186,372 | | | 11.77 | |
| Vested | (593,506) | | | 19.85 | |
| Forfeited | (101,817) | | | 24.68 | |
| Restricted Stock Outstanding at December 31, 2025 | 1,667,361 | | | $ | 17.57 | |
During 2025, 2024, and 2023, the Company granted 1,186,372, 650,221, and 630,445 shares of restricted stock, respectively, with aggregate fair values on the date of grant of approximately $14.0 million, $17.0 million, and $16.1 million, respectively. The total fair value of restricted stock that vested during 2025, 2024, and 2023 was approximately $7.1 million, $16.5 million, and $25.1 million, respectively.
Stock Options
Stock options are awarded with an exercise price equal to the market price of the underlying stock on the date of grant, become fully exercisable three years after the date of grant, and expire ten years after the date of grant. No stock options have been granted by the Company since February 2015.
A summary of all stock option activity during 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | |
| Number of Options | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Life | | Aggregate
Intrinsic Value
($ in millions) |
| Options Outstanding at December 31, 2024 | 2,083 | | | $ | 14.16 | | | 1.1 | | $ | — | |
| Exercised | (750) | | | $ | 14.78 | | | | | $ | — | |
| Forfeited | (1,333) | | | $ | 14.16 | | | | | $ | — | |
| | | | | | | |
| Options Outstanding at December 31, 2025 | — | | | $ | — | | | — | | | $ | — | |
| | | | | | | |
| Options Exercisable at December 31, 2025 | — | | | $ | — | | | — | | | $ | — | |
The total intrinsic value of stock options exercised during 2025, 2024, and 2023 was approximately less than $0.1 million, less than $0.1 million, and $0.2 million, respectively.