Compensation
12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Compensation
Compensation
Certain of our employees participated in stock-based compensation plans administered by Ventas. In connection with the spin-off, outstanding Ventas equity awards held by our employees were converted into awards in respect of our common stock. As a result of the conversion mechanics, the fair value of the converted awards exceeded the fair value of the Ventas awards from which they were converted by $1.0 million, of which $0.5 million related to vested, unexercised options. For the year ended December 31, 2015, we recognized $1.4 million of expense associated with these converted awards, including the $0.5 million expense associated with vested, unexercised options recognized on August 17, 2015. The remaining $2.2 million of expense associated with the converted awards will be amortized as stock-based compensation over the respective vesting terms of the converted awards. The fair value of the converted stock option awards was determined using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 0.21% - 1.31%, dividend yield of 6.3%, volatility factors of the expected market price for our common stock of 25% - 27%, and a weighted average expected life of options of 0.4 years - 3.82 years.
In August 2015, we adopted the Care Capital Properties, Inc. 2015 Incentive Plan (the “Plan”), pursuant to which options to purchase common stock, shares of restricted stock or restricted stock units and other equity awards may be granted to our employees, directors and consultants. A total of 7,000,000 shares of our common stock was reserved initially for issuance under the Plan. During the year ended December 31, 2015, we granted 190,471 shares of restricted stock to employees and directors under the Plan having a value of $6.5 million. The value of these shares is the closing price of our common stock on the date of grant. These shares generally vest on the third anniversary of the date of grant or in three equal annual installments beginning on the first anniversary of the date of grant. For shares with a graded vesting schedule that only require service, we recognize stock-based compensation expense on a straight-line basis over the requisite service period of the last separately vesting portion of the award.
For the year ended December 31, 2015, we recognized $3.2 million of stock-based compensation expense included in general, administrative and professional fees.
    
Stock Options
The following is a summary of stock option activity in 2015:
 
Shares
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Life (years)
 
Intrinsic Value ($000s)
Outstanding as of December 31, 2014


 


 
 
 
 
Converted options
1,047,501

 
$
32.01

 
 
 
 
Options exercised

 

 
 
 
 
Options forfeited

 

 
 
 
 
Options expired

 

 
 
 
 
Outstanding as of December 31, 2015
1,047,501


32.01


7.8

$
835,098

Exercisable as of December 31, 2015
646,158

 
$
30.82

 
7.3
 
$
732,994


As of December 31, 2015, we had $0.7 million of total unrecognized compensation cost related to nonvested stock options. We expect to recognize that cost over a weighted average period of 1.45 years.
Restricted Stock
A summary of the status of our nonvested restricted stock as of December 31, 2015, and changes during the year ended December 31, 2015 follows:
 
 
Shares
 
Weighted Average Grant Date Fair Value
Nonvested at beginning of year
 

 
$

Converted
 
125,183

 
16.98

Granted
 
190,471

 
34.01

Vested
 

 

Forfeited
 

 

Nonvested at end of year
 
315,654

 
$
27.26


As of December 31, 2015, we had $7.0 million of total unrecognized compensation cost related to nonvested restricted stock. We expect to recognize that cost over a weighted average period of 2.3 years.
Employee Benefit Plan
We maintain a 401(k) plan that allows eligible employees to defer compensation subject to certain limitations imposed by the Code. In 2015, we made contributions for each qualifying employee of 100% of the first 1% and 50% of the next 1% to 5% of eligible compensation contributed, subject to certain limitations. During 2015, our aggregate contributions were less than $0.1 million.