Quarterly report pursuant to Section 13 or 15(d)

Equity Incentive Plan (Notes)

v3.5.0.2
Equity Incentive Plan (Notes)
 6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Equity Incentive Plan
On May 14, 2015, the Company’s stockholders approved the Company’s Second Restated 2009 Equity Incentive Plan, which replaced the previous Restated 2009 Equity Incentive Plan, both of which are referred to collectively as the Plan. This stockholder approval effectuated, among other changes, an increase in the number of shares of common stock available for issuance under the Plan by 10,000,000 shares, to a total of 13,000,000 shares.
During the three months ended June 30, 2016 and 2015, the Company granted 68,612 and 45,109 shares of common stock, respectively, to its independent directors pursuant to the Plan. The estimated fair value of these awards was $8.43 and $10.53 per share on grant date, based on the closing price of the Company’s common stock on the NYSE on such date. The grants vested immediately.
Additionally, during the six months ended June 30, 2016 and 2015, the Company granted 1,677,998 and 1,115,574 shares of restricted common stock, respectively, to key employees of PRCM Advisers pursuant to the terms of the Plan and the associated award agreements. The estimated fair value of these awards was $7.33 and $10.49 per share on grant date, based on the closing market price of the Company’s common stock on the NYSE on such date. However, as the cost of these awards is measured at fair value at each reporting date based on the price of the Company’s stock as of period end in accordance with ASC 505, Equity, or ASC 505, the fair value of these awards as of June 30, 2016 was $8.56 per share based on the closing market price of the Company’s common stock on the NYSE on such date. The shares underlying the grants vest in three equal annual installments commencing on the first anniversary of the grant date, as long as such grantee complies with the terms and conditions of his or her applicable restricted stock award agreement.
The following table summarizes the activity related to restricted common stock for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30,
 
2016
 
2015
(in thousands)
Shares
 
Weighted Average Grant Date Fair Market Value
 
Shares
 
Weighted Average Grant Date Fair Market Value
Outstanding at Beginning of Period
2,290,609

 
$
10.36

 
2,002,406

 
$
10.32

Granted
1,746,610

 
7.37

 
1,160,683

 
10.49

Vested
(1,095,888
)
 
(10.35
)
 
(720,712
)
 
(10.46
)
Forfeited
(41,175
)
 
(8.77
)
 
(55,474
)
 
(10.19
)
Outstanding at End of Period
2,900,156

 
$
8.59

 
2,386,903

 
$
10.36



For the three and six months ended June 30, 2016, the Company recognized compensation costs related to restricted common stock of $4.9 million and $7.8 million, respectively. For the three and six months ended June 30, 2015, the Company recognized compensation costs related to restricted common stock of $2.9 million and $5.6 million, respectively.