Annual report pursuant to Section 13 and 15(d)

NOTE 12: - STOCK-BASED COMPENSATION

v3.6.0.2
NOTE 12: - STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]  
Shareholders' Equity and Share-based Payments [Text Block]
NOTE 12:–                      STOCK-BASED COMPENSATION

a.           Stockholders’ rights:

The Company’s shares confer upon the holders the right to receive notice to participate and vote in the general meetings of the Company and right to receive dividends, if and when declared.

b.           The Company has adopted the following stock award plans, whereby options may be granted for purchase of shares of the Company’s common stock and where restricted shares and restricted stock units may be granted if approved by the Board of Directors. Each restricted stock unit is equal to one share of Company stock and is redeemable only for stock. Under the terms of the award plans, the Board of Directors or the designated committee grants options, restricted stock and restricted stock units. The Board of Directors or the designated committee also determines the vesting period and the exercise terms.

1.           2007 Non-Employee Director Equity Compensation Plan – 750,000 shares reserved for issuance, of which 162,987 were available for future grants to outside directors as of December 31, 2016.

2.           2009 Equity Incentive Plan – 5,000,000 shares reserved for issuance, of which 2,589,269 were available for future grants to employees and consultants as of December 31, 2016.

3.           Under these plans, restricted shares and restricted stock units generally vest after one to three years or pursuant to defined performance criteria; in the event that employment is terminated within that period, unvested restricted shares and restricted stock units generally revert back to the Company.

4.           Stock compensation expense is recorded ratably over the vesting period of the option or the restriction period of the restricted shares and restricted stock units. The stock compensation expense that has been charged in the consolidated statements of comprehensive income in respect of restricted shares and restricted stock units to employees and directors in 2016, 2015, and 2014 was $878,000, $622,000, and $1,412,000, respectively. 

5.           A summary of the status of the Company’s restricted shares and restricted stock units granted as of December 31, 2016 and 2015, and changes during the years ended on those dates, is presented below:

 Restricted Shares and Restricted Stock Units:

 
 
2016
   
2015
   
2014
 
 
 
Shares
   
Weighted
average fair value at grant date
   
Shares
   
Weighted
average fair value at grant date
   
Shares
   
Weighted
average fair value at grant date
 
Non-vested at the beginning of the year
   
516,952
   
$
2.94
     
920,678
   
$
2.99
     
584,746
   
$
2.52
 
Changes during year:
                                               
Restricted stock granted
   
310,735
   
$
2.39
     
57,028
   
$
2.89
     
341,861
   
$
2.60
 
Restricted units granted
   
150,500
   
$
2.31
     
   
$
     
163,175
   
$
2.48
 
Vested
   
(220,630
)
 
$
2.86
     
(451,122
)
 
$
3.15
     
(166,110
)
 
$
2.23
 
Forfeited
   
(275,259
)
 
$
2.96
     
(9,632
)
 
$
2.38
     
(2,994
)
 
$
3.65
 
Non-vested at the end of the year
   
482,298
   
$
2.41
     
516,952
   
$
2.94
     
920,678
   
$
2.99
 
Restricted shares vested at end of year
   
3,626,580
   
$
1.86
     
3,405,960
   
$
2.22
     
2,954,838
   
$
2.07
 

6.           The remaining total compensation cost related to non-vested restricted share and restricted stock unit awards not yet recognized (before applying a forfeiture rate) in the income statement as of December 31, 2016 was $188,000. The weighted average period over which this compensation cost is expected to be recognized is approximately one and a half years.