Stock Based Compensation | STOCK BASED COMPENSATION Under the 2012 Omnibus Equity Award Plan, the Company has granted stock options, restricted stock and Performance-Based Restricted Stock Units (“PSUs”) to certain employees and directors. On January 1, 2017, as a result of ASU No. 2016-09 as discussed in Note 2, the Company recorded expense based upon the number of awards outstanding with no estimate for forfeitures. Previously, the Company estimated forfeitures that it expected would occur and recorded expense based upon the number of awards expected to vest. The Company recorded total stock based compensation expense of $2.5 million during the three month period ended March 31, 2017 and $3.6 million of compensation expense, which included $0.9 million of accelerated compensation due to Slashdot Media as shown in Note 9, during the three month period ended March 31, 2016 . At March 31, 2017 , there was $18.7 million of unrecognized compensation expense related to unvested awards, which is expected to be recognized over a weighted-average period of approximately 1.8 years. Restricted Stock— Restricted stock is granted to employees of the Company and its subsidiaries, and to non-employee members of the Company’s Board. These shares are part of the compensation plan for services provided by the employees or Board members. The closing price of the Company’s stock on the date of grant is used to determine the fair value of the grants. The expense related to the restricted stock grants is recorded over the vesting period. There was no cash flow impact resulting from the grants. The restricted stock vests in various increments on the anniversaries of each grant, subject to the recipient’s continued employment or service through each applicable vesting date. Vesting occurs over one year for Board members and over four years for employees. A summary of the status of restricted stock awards as of March 31, 2017 and 2016 and the changes during the periods then ended is presented below: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Shares Weighted- Average Fair Value at Grant Date Shares Weighted- Average Fair Value at Grant Date Non-vested at beginning of the period 2,226,375 $ 7.87 2,122,225 $ 8.54 Granted 986,000 $ 5.00 1,033,500 $ 7.56 Forfeited (41,125 ) $ 7.89 (119,875 ) $ 8.36 Vested (622,625 ) $ 8.20 (655,875 ) $ 8.53 Non-vested at end of period 2,548,625 $ 6.68 2,379,975 $ 8.13 PSUs— PSUs are granted to employees of the Company and its subsidiaries. These shares are part of the compensation plan for services provided by the employees. The expense related to the PSUs is recorded over the vesting period. These shares will vest on the dates the Compensation Committee certifies the Company’s achievement of stock price performance relative to the Russell 2000 Index, provided that the recipient remains employed through such date. Performance will be measured over three separate measurement periods: a one-year measurement period, a two-year measurement period and a three-year measurement period. For performance periods one and two, vesting is not to exceed total grant divided by three. For performance period three, vesting is no less than zero and no greater than 150% of initial grant less shares vested in performance periods one and two. There was no cash flow impact resulting from the grants. The fair value of PSUs is measured using the Monte Carlo pricing model using the following assumptions: Three Months Ended March 31, 2017 2016 Weighted average fair value of PSUs granted $ 5.38 $ 7.24 Dividend yield of DHI Group, Inc. stock — % — % Dividend yield of Russell 2000 Index 1.4 % 1.7 % Risk free interest rate 1.5 % 0.9 % Volatility of DHI Group, Inc. stock 41.0 % 33.5 % Volatility of Russell 2000 Index 16.7 % 16.7 % A summary of the status of PSUs as of March 31, 2017 and 2016 and the changes during the periods then ended is presented below: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Shares Weighted- Average Fair Value at Grant Date Shares Weighted- Average Fair Value at Grant Date Non-vested at beginning of the period 580,004 $ 8.02 415,000 $ 9.25 Granted 397,500 $ 5.38 417,500 $ 7.24 Forfeited — $ — (26,667 ) $ 8.50 Vested — $ — (134,995 ) $ 9.25 Non-vested at end of period 977,504 $ 6.95 670,838 $ 8.03 Stock Options— The fair value of each option grant is estimated using the Black-Scholes option-pricing model using the weighted-average assumptions in the table below. This valuation model requires the Company to make assumptions and judgments about the variables used in the calculation, including the fair value of the Company’s common stock, the expected life (the period of time that the options granted are expected to be outstanding), the volatility of the Company’s common stock, a risk-free interest rate and expected dividends. The expected life of options granted is derived from historical exercise behavior. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury rates in effect at the time of grant. The stock options vest 25% after one year, beginning on the first anniversary date of the grant, and 6.25% each quarter following the first anniversary. There was no cash flow impact resulting from the grants. No stock options were granted during the three months ended March 31, 2017 and March 31, 2016 . A summary of the status of options previously granted as of March 31, 2017 , and 2016 , and the changes during the periods then ended is presented below: Three Months Ended March 31, 2017 Options Weighted-Average Exercise Price Aggregate Intrinsic Value Options outstanding at beginning of the period 1,779,613 $ 8.46 $ 50,869 Exercised (66,188 ) $ 6.08 $ 12,821 Forfeited (363,243 ) $ 6.24 $ — Options outstanding at end of period 1,350,182 $ 9.18 $ — Exercisable at end of period 1,192,587 $ 9.36 $ — Three Months Ended March 31, 2016 Options Weighted-Average Exercise Price Aggregate Intrinsic Value Options outstanding at beginning of the period 2,673,512 $ 7.46 $ 5,485,248 Exercised (281,750 ) $ 3.65 $ 1,343,872 Forfeited (28,063 ) $ 7.79 $ — Options outstanding at end of period 2,363,699 $ 7.91 $ 2,326,963 Exercisable at end of period 1,870,852 $ 7.81 $ 2,116,465 In connection with the Company’s sale of Slashdot Media, the Company accelerated the vesting of 130,375 shares of restricted stock and 24,001 stock options to certain former employees during the three month period ended March 31, 2016 , the expense of which is recorded in Disposition Related and Other Costs in the Condensed Consolidated Statements of Operations. The weighted-average remaining contractual term of options exercisable at March 31, 2017 is 2.8 years. The following table summarizes information about options outstanding as of March 31, 2017 : Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted- Average Remaining Contractual Life Number Exercisable (in years) $ 7.00 - $ 7.99 418,844 3.5 311,468 $ 8.00 - $ 8.99 214,500 2.3 202,406 $ 9.00 - $ 9.99 480,000 3.1 450,625 $ 10.00 - $ 14.50 236,838 2.1 228,088 1,350,182 1,192,587 |