Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation and Other Compensation Matters (Tables)

v3.20.4
Share-Based Compensation and Other Compensation Matters (Tables)
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Reporting for share-based compensation expense
The table below sets forth our reporting for share based compensation cost (in thousands):
 For the Years Ended December 31,
2020 2019 2018
General, administrative and leasing expenses $ 5,385  $ 5,748  $ 5,415 
Property operating expenses 1,119  966  961 
Capitalized to development activities 556  742  587 
Share-based compensation cost $ 7,060  $ 7,456  $ 6,963 
Summary of restricted share and TB-PIU transactions under the entity's share-based compensation plans
The following table summarizes restricted shares under the share-based compensation plans for 2018, 2019 and 2020:
 Shares Weighted Average Grant Date Fair Value
Unvested as of December 31, 2017
 425,626  $ 30.37 
Granted 219,716  25.62 
Forfeited (25,419) 30.02 
Vested (181,238) 29.49 
Unvested as of December 31, 2018
 438,685  28.38 
Granted 195,520  26.56 
Forfeited (56,341) 29.44 
Vested (185,001) 28.01 
Unvested as of December 31, 2019
 392,863  27.49 
Granted 166,918  25.22 
Forfeited (25,773) (1) 27.12 
Vested (173,191) 28.14 
Unvested as of December 31, 2020
 360,817  $ 26.16 
Unvested shares as of December 31, 2020 that are expected to vest
 330,605  $ 26.14 
(1)Includes 9,064 restricted shares previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.
The following table summarizes TB-PIUs under the share-based compensation plan for 2019 and 2020:
Number of TB-PIUs Weighted Average Grant Date Fair Value
Unvested as of December 31, 2018
 —  N/A
Granted 61,820  $ 26.01 
Unvested as of December 31, 2019
 61,820  26.01 
Granted 98,318  25.47 
Forfeited (20,622) (1) 25.50 
Vested (25,182) 26.30 
Unvested as of December 31, 2020
 114,334  $ 25.57 
Unvested TB-PIUs as of December 31, 2020 that are expected to vest
 114,334  $ 25.57 
(1)Represents TB-PIUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.
Schedule of PB-PIU/PSUs Granted
We made the following grants of PB-PIUs to executives in 2019 and 2020: (dollars in thousands, except per share data):
Grant Date Number of PB-PIUs Granted Performance Period Commencement Date Performance Period End Date Grant Date Fair Value
Number of PB-PIUs Outstanding as of December 31, 2020 (1)
1/1/2019 193,682  1/1/2019 12/31/2021 $ 2,415  156,104 
1/1/2020 176,758  1/1/2020 12/31/2022 $ 2,891  141,152 
(1)Excludes 73,184 PB-PIUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.
We made the following grants of PSUs to executives from 2016 through 2018 (dollars in thousands):
Grant Date Number of PSUs Granted Performance Period Commencement Date Performance Period End Date Grant Date Fair Value
Number of PSUs Outstanding as of December 31, 2020
3/1/2016 26,299  1/1/2016 12/31/2018 $ 1,005  — 
1/1/2017 39,351  1/1/2017 12/31/2019 $ 1,415  — 
1/1/2018 59,110  1/1/2018 12/31/2020 $ 1,890  46,912  (1)
(1)Excludes 12,198 PSUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.
Schedule of payouts for defined performance under PB-PIU/PSUs The number of earned awards at the end of the
performance period will be determined based on the percentile rank of COPT’s total shareholder return (“TSR”) relative to a peer group of companies, as set forth in the following schedule:
Percentile Rank   Earned Awards Payout %
75th or greater  
100% of PB-PIUs granted
50th (target)  
50% of PB-PIUs granted
25th  
25% of PB-PIUs granted
Below 25th  
0% of PB-PIUs granted
The number of PSUs earned (“earned PSUs”) at the end of the performance period were determined based on the percentile rank of COPT’s TSR relative to a peer group of companies, as set forth in the following schedule:
Percentile Rank   Earned PSUs Payout %
75th or greater  
200% of PSUs granted
50th (target)  
100% of PSUs granted
25th  
50% of PSUs granted
Below 25th  
0% of PSUs granted
Schedule of assumptions used in Monte Carlo models for PB-PIUs The grant date fair value and certain of the assumptions used in the Monte Carlo models for the PB-PIUs granted in 2019 and 2020 are set forth below:
Grant Date Grant Date Fair Value Per PB-PIU Baseline Common Share Value Expected Volatility of Common Shares Risk-free Interest Rate
1/1/2019 $ 12.47  $ 21.03  21.0  % 2.51  %
1/1/2020 $ 16.36  $ 29.38  18.0  % 1.65  %
Deferred Shares Granted
We made the following grants of deferred share awards to nonemployee members of our Board of Trustees in 2018, 2019 and 2020 (dollars in thousands, except per share data):
Year of Grant Number of Deferred Share Awards Granted Aggregate Grant Date Fair Value Grant Date Fair Value Per Share
2018 13,832  $ 388  $ 28.08 
2019 3,432  $ 95  $ 27.60 
2020 10,679  $ 253  $ 23.68 
Share-based compensation, common shares issued in settlement of vested deferred share awards We issued the following common shares in settlement of deferred shares in 2018, 2019 and 2020 (dollars in thousands, except per share data):
Year of Settlement Number of Common Shares Issued Grant Date Fair Value Per Share Aggregate Intrinsic Value
2018 5,515  $ 29.32  $ 154 
2019 3,097  $ 26.77  $ 86 
2020 —  N/A N/A