FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 73
Table of Contents
Note 18 - Equity-Based Compensation
We have equity-based compensation plans that authorize the issuance of equity-based awards for shares of Class A
and Class B common stock to directors, officers and key employees. Equity-based compensation grants are designed
to reward long-term contributions to Moog and provide incentives for recipients to remain with Moog.
We have an Employee Stock Purchase Plan ("ESPP") that allows for qualified employees (as defined in the plan) to
purchase our common stock at a price equal to 85% of the fair market value at the lower of the beginning or the end
of the semi-annual offering period.
The 2014 Long Term Incentive Plan ("2014 Plan") authorizes the issuance of a total of 2,000,000 shares of either
Class A or Class B common stock. The 2014 Plan is intended to provide a flexible framework that permits the
development and implementation of a variety of equity-based programs that base awards on key performance metrics
as well as align our long term incentive compensation with our peers and shareholder interests.
During 2021, we granted awards in the form of stock appreciations rights ("SARs"), performance-based restricted
stock units ("PSUs"), time vested restricted stock units ("TVAs") and restricted stock awards ("RSAs"). The
compensation cost for employee and non-employee director equity-based compensation programs for all current and
prior year awards granted are as follows:
Stock appreciation rights
Performance-based restricted stock units
Time vested restricted stock units
Restricted stock awards
Employee stock purchase plan
Total compensation cost before income taxes
Income tax benefit
$
$
$
2021
2,345
1,151
602
730
2,633
7,461
893
$
$
$
2020
2,643
221
—
680
2,117
5,661
677
$
$
$
2019
2,594
2,048
—
480
1,342
6,464
1,024
Stock Appreciation Rights
The fair value of SARs granted was estimated on the date of grant using the Black-Scholes option-pricing model. The
following table provides the range of assumptions used to value awards and the weighted-average fair value of the
awards granted.
Expected volatility
Risk-free rate
Expected dividends
Expected term
Weighted-average fair value of awards granted
$
2021
38% - 41%
0.4% - 0.5%
1.4 %
5-6 years
23.11
$
2020
27% - 28%
1.7% - 1.8%
1.2 %
5-6 years
21.45
2019
$
26%
3.0%
1.2 %
5-6 years
20.79
To determine expected volatility, we generally use historical volatility based on daily closing prices of our Class A and
Class B common stock over periods that correlate with the expected terms of the awards granted. The risk-free rate is
based on the United States Treasury yield curve at the time of grant for the appropriate expected term of the awards
granted. Expected dividends are based on our history and expectation of dividend payouts. The expected term of
equity-based awards is based on vesting schedules, expected exercise patterns and contractual terms.
The number of shares received upon the exercise of a SAR is equal in value to the difference between the fair market
value of the common stock on the exercise date and the exercise price of the SAR. The term of a SAR may not
exceed ten years from the grant date. The exercise price of SARs and options, determined by a committee of the
Board of Directors, may not be less than the fair value of the common stock on the grant date.
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