Marcus & Millichap, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation Plans (Tables)

Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Outstanding Awards Under 2013 Omnibus Equity Incentive Plan

Activity under the 2013 Plan consisted of the following (dollars in thousands, except per share data):


	RSA Grants to Non-employee Directors		RSU Grants to Employees			RSU Grants to Independent Contractors			Total			Weighted- Average Grant Date Fair Value Per Share
Nonvested shares at December 31, 2017		30,732		500,859			450,264			981,855		$	23.90

Granted
February 2018		—		106,419			20,293			126,712
March 2018		—		15,000			—			15,000

Total Granted		—		121,419			20,293			141,712			32.43
Vested		—		(132,325	)		(126,605	)		(258,930	)		20.59
Transferred		—		—			—			—			—
Forfeited/canceled		—		(1,960	)		(4,598	)		(6,558	)		29.21

Nonvested shares at March 31, 2018 ⁽¹⁾		30,732		487,993			339,354			858,079		$	26.27

Unrecognized stock-based compensation expense as of March 31, 2018 ⁽²⁾	$	423	$	12,669		$	10,154		$	23,246

Weighted average remaining vesting period (years) as of March 31, 2018		1.60		3.54			2.69			3.14

⁽¹⁾	Nonvested RSU’s will be settled through the issuance of new shares of common stock.

⁽²⁾	The total unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately 3.14 years.

Schedule of Future Share Settlements

Future share settlements of DSUs by year consisted of the following:


	March 31, 2018
2018		237,052
2021		60,373
2022		281,193

		578,618

Stock-Based Compensation Expense

Components of stock-based compensation are included in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income consisted of the following (in thousands, except common stock price):


	Three Months Ended March 31,
	2018		2017
Employee stock purchase plan	$	39	$	46
RSAs – non-employee directors		111		89
RSUs – employees		953		914
RSUs – independent contractors ⁽¹⁾		1,510		817

	$	2,613	$	1,866

Common stock price at beginning of period	$	32.61	$	26.72
Common stock price at end of period	$	36.06	$	24.58
Increase (decrease) in stock price	$	3.45	$	(2.14	)

⁽¹⁾

The Company grants RSUs to independent contractors (i.e. investment sales and financing professionals), who are considered non-employees under the accounting standards. Accordingly, such awards are required to be measured at fair value at the end of each reporting period until settlement. Stock-based compensation expense is therefore impacted by the changes in the Company’s common stock price during each reporting period.