Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation and Other Compensation Matters (Tables)

v3.22.0.1
Share-Based Compensation and Other Compensation Matters (Tables)
12 Months Ended
Dec. 31, 2021
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,
2021 2020 2019
General, administrative and leasing expenses $ 6,881  $ 5,385  $ 5,748 
Property operating expenses 1,098  1,119  966 
Capitalized to development activities 719  556  742 
Share-based compensation cost $ 8,698  $ 7,060  $ 7,456 
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 2019, 2020 and 2021:
 Shares Weighted Average Grant Date Fair Value
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 
Granted 177,995  $ 26.17 
Forfeited (39,664) $ 26.62 
Vested (164,575) $ 25.95 
Unvested as of December 31, 2021
334,573  $ 26.22 
Unvested shares as of December 31, 2021 that are expected to vest
306,658  $ 26.22 
(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, 2020 and 2021:
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 
Granted 93,983  $ 26.16 
Vested (45,244) $ 25.28 
Unvested as of December 31, 2021
163,073  $ 25.99 
Unvested TB-PIUs as of December 31, 2021 that are expected to vest
162,472  $ 25.99 
(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, 2020 and 2021 (dollars in thousands, except per share data):
Grant Date Number of PB-PIUs Granted Grant Date Fair Value
Number of PB-PIUs Outstanding as of December 31, 2021 (1)
1/1/2019 193,682  $ 2,415  156,104 
1/1/2020 176,758  $ 2,891  141,152 
1/1/2021 227,544  $ 3,417  227,544 
(1)Excludes 73,184 PB-PIUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.
As of December 31, 2021, we had no PSU grants outstanding. Below is information for executive grants of PSUs with performance periods included in these consolidated financial statements (dollars in thousands):
Grant Date Number of PSUs Granted Grant Date Fair Value
1/1/2017 39,351  $ 1,415 
1/1/2018 59,110  $ 1,890 
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, 2020 and 2021 are set forth below:
Grant Date  Grant Date Fair Value Per PB-PIU at Target-Level Award Baseline Common Share Value Expected Volatility of Common Shares Risk-free Interest Rate
1/1/2019 $ 24.94  $ 21.03  21.0  % 2.51  %
1/1/2020 $ 32.71  $ 29.38  18.0  % 1.65  %
1/1/2021 $ 30.03  $ 26.08  34.7  % 0.18  %
Deferred Shares Granted
We made the following grants of deferred share awards to non-employee Trustees in 2019, 2020 and 2021 (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 Award
2019 3,432  $ 95  $ 27.60 
2020 10,679  $ 253  $ 23.68 
2021 3,416  $ 93  $ 27.12