STOCK-BASED COMPENSATION |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In October 2020, the Company’s stockholders approved the 2020 Plan, which is administered by the Compensation Committee of the Board of Directors. The 2020 Plan reserves for issuance a total of 5.5 million shares of Class A common stock to the Company's officers, directors, employees or consultants eligible to receive awards under the 2020 Plan. As of December 31, 2024, there were approximately 2.5 million shares of Class A common stock remaining available to be granted under the 2020 Plan. As of December 31, 2024, only RSUs were outstanding under the 2020 Plan.
The 2020 Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock-based awards, cash awards or a
combination of the foregoing, to employees, directors or consultants, provided that only employees may be granted incentive stock options. The 2020 Plan will terminate ten years after its adoption, unless terminated earlier by the Company’s Board of Directors.
Restricted Stock Units
The Company issues RSUs under the 2020 Plan, which represent the right to receive, upon vesting, one share of the Company’s Class A common stock. RSUs granted to employees in connection with the Company's IPO vest 25% on the second and third anniversary of the grant and 50% on the fourth anniversary. Subsequent RSUs granted to employees vest over to three years. RSUs granted to non-employee directors generally vest on the on the next annual meeting of stockholders of the Company following the grant date. RSUs are authorized to settle in shares of the Company's Class A common stock.
The following table shows a summary of the unvested RSUs under the 2020 Plan as of December 31, 2024 as well as activity during the year:
(1)Includes shares accrued for DEUs on outstanding RSUs. There is no weighted average fair value associated with DEUs.
Compensation costs recognized for these restricted stock grants were approximately $9.7 million and $8.7 million for the years ended December 31, 2024 and 2023, respectively. The income tax benefit recognized related to this expense was approximately $0.1 million and $0.9 million for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, there was approximately $8.5 million of unrecognized compensation costs related to these unvested RSUs which is expected to be recognized over a weighted average period of 1.5 years. The total fair value of RSUs, including DEUs, that vested during the years ended December 31, 2024 and 2023 was $17.5 million and $7.5 million, respectively. EMPLOYEE BENEFIT PLANSDefined Contribution Plan
The Company has a 401(k) profit sharing plan covering substantially all employees. Employees may contribute amounts subject to certain Internal Revenue Service and plan limitations. The Company may make discretionary matching and nonelective contributions. Employee contributions are matched by the Company equal to 40% of the first 6% of compensation contributed. For the years ended December 31, 2024 and 2023, the Company contributed $8.3 million and $7.1 million, respectively, for 401(k) contributions and related administrative expenses.
Deferred Compensation Plans The Company has a deferred compensation plan for executives which was frozen effective December 31, 2007. Distribution of a participant’s vested balance is payable in a single lump sum upon death or disability, termination of employment, retirement after attaining age 65 (55 for participants who had an account balance in the plan as of May 1, 2001), or upon termination of the plan. In 2017, the Company commenced a Non-Qualified Deferred Compensation Plan for certain highly compensated executives and employees that allows the participants to defer a portion of their earnings. Distribution of a participant’s vested balance is payable in a single lump sum upon death or disability, termination of employment, retirement, or upon termination of the plan. During the years ended December 31, 2024 and 2023, the Company distributed cash payments of $26.5 million and $5.8 million, respectively, under these plans resulting in a deferred compensation plan liability of $81.8 million and $99.2 million as of December 31, 2024 and 2023, respectively
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