Stock-Based Compensation Expense |
9 Months Ended |
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Dec. 31, 2019 | |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Stock-Based Compensation Expense | Stock-Based Compensation Expense
Our board of directors has adopted and the shareholders have approved two stock option award plans. The 2010 Thermon Group Holdings, Inc. Restricted Stock and Stock Option Plan (“2010 Plan”) was approved on July 28, 2010. The 2010 Plan authorized the issuance of 2,767,171 stock options or restricted shares (on a post-stock split basis). On April 8, 2011, the board of directors approved the Thermon Group Holdings, Inc. 2011 Long-Term Incentive Plan (“2011 LTIP”). The 2011 LTIP made available 2,893,341 shares of the Company’s common stock that may be awarded to employees, directors or non-employee contractors as compensation in the form of stock options, restricted stock awards or restricted stock units.
At December 31, 2019, there were 200,107 options outstanding. Stock compensation expense for the three months ended December 31, 2019 and 2018, was $1,328 and $1,041, respectively, and $3,670 and $3,130 for the nine months ended December 31, 2019 and 2018, respectively.
During the nine months ended December 31, 2019, 119,509 restricted stock units were issued to our employees with an aggregate grant date fair value as determined by the closing price of our stock on the respective grant dates of $2,641. The awards will be expensed on a straight-line basis over the three-year service period. At each anniversary of the applicable grant dates for the restricted stock units, a proportionate number of stock units will become vested for the employees and the shares will become issued and outstanding.
We maintain a plan to issue our directors awards of fully vested common stock every three months for a total award over a 12 month period of approximately $759. The number of shares issued each period is subject to the fair market value of the stock price at the time of the award. During the three and nine months ended December 31, 2019, 8,560, and 19,520 fully vested common shares were granted in the aggregate to our directors, respectively, of which 9,477 and 19,520 common shares were issued to our directors during the three and nine months ended December 31, 2019, respectively. The aggregate grant date fair value as determined by the closing price of our common stock on the grant date was $190 and $470 for the three and nine months ended December 31, 2019, respectively. The fair value of the awards is expensed on each grant date.
During the nine months ended December 31, 2019, a target amount of 30,075 performance stock units were issued to certain members of our senior management that had a total grant date fair value of $915. The performance indicator for these performance stock units is based on the market performance of our stock price, from the date of grant through March 31, 2022, relative to the market price performance of a pre-determined peer group of companies. Since the performance indicator is market-based, we used a Monte-Carlo valuation model to calculate the probable outcome of the performance measure to arrive at the fair value. The requisite service period required to earn the awards is through March 31, 2022. We will expense the fair value of the performance stock units over the service period on a straight-line basis whether or not the stock price performance condition is met. At the end of the performance period, the performance stock units will be evaluated with the requisite number of shares being issued. The possible number of shares that could be issued ranges from zero to 60,150 in the aggregate. Shares that are not awarded at the measurement date will be forfeited.
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