Stock Based Compensation
|9 Months Ended|
Sep. 30, 2018
|Share-based Compensation [Abstract]|
|Stock Based Compensation||
STOCK BASED COMPENSATION
Washington REIT maintains short-term (“STIP”) and long-term (“LTIP”) incentive plans that allow for stock based awards to officers and non-officer employees. Stock based awards are provided to officers and non-officer employees, as well as trustees, under the Washington Real Estate Investment Trust 2016 Omnibus Incentive Plan which allows for awards in the form of restricted shares, restricted share units, options and other awards up to an aggregate of 2,400,000 shares over the ten-year period in which the plan will be in effect. Restricted share units are converted into shares of our stock upon full vesting through the issuance of new shares.
During the first quarter of 2018, we amended the LTIP for executive officers to eliminate the absolute total shareholder return (“TSR”) component and only utilize relative TSR in the measurement of market condition performance. Under the amended LTIP, relative TSR will be evaluated 50% relative to a defined population of peer companies and 50% relative to the FTSE NAREIT Diversified Index. Prior to this amendment, the LTIP utilized both absolute TSR and relative TSR, with each component having a 50% weighting, and relative TSR was evaluated relative only to a defined population of peer companies. The amendment is effective for three-year performance periods commencing on or after January 1, 2018.
Total Compensation Expense
Total compensation expense recognized in the consolidated financial statements for all outstanding share based awards was $1.7 million and $1.2 million for the 2018 Quarter and 2017 Quarter, respectively, and $5.1 million and $3.6 million for the 2018 Period and 2017 Period, respectively.
Restricted Share Awards
The total fair values of restricted share awards vested was $1.1 million and $2.0 million for the 2018 Period and 2017 Period, respectively.
The total unvested restricted share awards at September 30, 2018 was 479,262 shares, which had a weighted average grant date fair value of $28.58 per share. As of September 30, 2018, the total compensation cost related to unvested restricted share awards was $9.1 million, which we expect to recognize over a weighted average period of 28 months.
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.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef