Quarterly report pursuant to Section 13 or 15(d)

Share-based Compensation of the Company (Notes)

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Share-based Compensation of the Company (Notes) (Tanger Factory Outlet Centers, Inc)
3 Months Ended
Mar. 31, 2012
Tanger Factory Outlet Centers, Inc
 
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Share-Based Compensation of the Company
We have a shareholder approved share-based compensation plan, the Amended and Restated Incentive Award Plan of Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership (the "Plan"), which covers our independent directors, officers and our employees. During the first three months of 2012, the Company's Board of Directors approved grants of 571,000 restricted common shares to the Company's independent directors and the Company's senior executive officers. The weighted average fair value of the awards granted was $27.90 per share. The independent directors' restricted common shares vest ratably over a three year period and the majority of the senior executive officers' restricted shares vest ratably over a five year period. Compensation expense related to the amortization of the deferred compensation amount is being recognized in accordance with the vesting schedule of the restricted shares.
Included in the 571,000 restricted common shares above were 225,000 restricted common shares granted to Steven B. Tanger, our President and Chief Executive Officer, under the terms of his amended and restated Employment Agreement (the "Employment Agreement") signed on February 28, 2012. Under the terms of the Employment Agreement, the Company granted Mr. Tanger the following: 45,000 fully-vested common shares; 90,000 restricted common shares that vest ratably over five years based on Mr. Tanger's continued employment with the Company and 90,000 restricted common shares that vest ratably over five years based on Mr. Tanger's continued employment with the Company and the Company achieving certain minimum total returns to shareholders.
We recorded share-based compensation expense in general and administrative expenses in our consolidated statements of operations for the three months ended March 31, 2012 and 2011 as follows (in thousands):
 
 
Three Months Ended
March 31,
 
 
2012
 
2011
Restricted shares (1)
 
$
2,850

 
$
1,266

Notional unit performance awards
 
489

 
507

Options
 
52

 
25

Total share-based compensation
 
$
3,391

 
$
1,798

(1) Includes approximately $1.3 million of compensation expense related to 45,000 shares that vested immediately upon grant related to the Employment Agreement described above.

The following table summarizes information related to unvested restricted shares outstanding as of March 31, 2012:
Unvested Restricted Shares
 
Number of shares
 
Weighted-average grant date fair value
Unvested at December 31, 2011
 
791,337

 
$
20.93

Granted
 
571,000

 
27.90

Vested
 
(273,800
)
 
21.44

Forfeited
 
(5,000
)
 
29.50

Unvested at March 31, 2012
 
1,083,537

 
$
24.43



The total value of restricted shares vested during the three months ended March 31, 2012 and March 31, 2011 was $8.2 million and $5.4 million, respectively.
As of March 31, 2012, there was $31.8 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 3.8 years