Tecumseh Products 2014 Annual Report Download - page 57

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55
During 2014, we have granted Restricted Stock Units ("RSUs") as well as non-qualified stock options. See Note 10, "Share-
based Compensation" for additional detail regarding the RSUs and stock options.
NOTE 10. Share-Based Compensation Arrangements
Prior to 2011, we granted Stock Appreciation Rights ("SARs") and phantom shares to certain key employees under our Long-
Term Incentive Cash Award Plan. As both the SARs and the phantom shares under this plan are settled in cash rather than by
issuing equity instruments, we record an expense with a corresponding liability on our Consolidated Balance Sheets. The
expense is based on the fair value of the awards on the last day of the reporting period and represents an amortization of that
fair value over the vesting period of the awards.
From 2011 to 2013, we awarded performance-based phantom shares to certain key employees to make our equity incentives
reflect our performance during the respective calendar year. These performance phantom shares vest one-third each year over a
three year period. In 2013, 2012 and 2011, 23,642, 435,866 and zero, respectively, performance-based phantom shares were
issued based on our calendar year financial results.
In the first quarter of 2014, our Board of Directors adopted the 2014 Omnibus Incentive Plan, which was approved by our
shareholders at our Annual Shareholders Meeting. Under this plan, we may award share-based compensation that does not have
to be settled in cash to key employees, directors and third-party service providers. In 2014, we awarded restricted stock units
("RSUs") and non-qualified stock options under our 2014 Omnibus Incentive Plan.
Our liability with regard to our outstanding, cash settled, share-based awards is re-measured in each quarterly reporting period.
The fair value of the phantom shares is based on the closing stock price of our Common Shares, or Class A Common Stock
prior to May 2, 2014 (see Note 9, "Stockholders' Equity", for further discussion), on the last day of the period. At
December 31, 2014 and December 31, 2013, the applicable closing stock price was $3.09 and $9.05, respectively.
A summary of activity under the plans during 2014 is as follows:
SARs: Number of awards
Weighted average exercise
price per share
Outstanding at January 1, 2014 52,079 $ 11.81
Granted —$ —
Exercised —$ —
Forfeited (45,028) $ 14.45
Outstanding at December 31, 2014 7,051 $ 13.03
Phantom Shares: * Number of awards
Weighted average grant date
value per share
Outstanding at January 1, 2014 235,942 $ 5.98
Granted —$ —
Vested (125,244) $ 5.05
Forfeited (50,990) $ 5.30
Outstanding at December 31, 2014 59,708 $ 5.61
* Includes both non-performance and performance based shares.
Restricted Stock Units: Number of awards
Weighted average grant date
value per share
Outstanding at January 1, 2014 — $ —
Granted 111,168 $ 4.74
Vested —$ —
Forfeited —$ —
Outstanding at December 31, 2014 111,168 $ 4.74