What was the number of Benihana stock options that vested during 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| Shares | Weighted average exercise price | Weighted average remaining contractual life | Intrinsic value (thousands) | ||
|---|---|---|---|---|---|
| Outstanding at January 1, 2021 | 1,707,008 | $ 3.37 | |||
| Vested | 594,402 | 3.09 | |||
| Exercised | (1,039,058) | 3.23 | |||
| Cancelled, expired or forfeited | (10,000) | 2.13 | |||
| Outstanding at December | 1,252,352 | 3.36 | 3.92 years | $ | 11,581 |
| 31, | |||||
| 2021 | |||||
| Exercisable at December | 1,126,685 | 3.48 | 3.72 years | $ | 10,283 |
| 31, | |||||
| 2021 | |||||
| Vested | - | - | |||
| Exercised | (65,000) | 2.13 | |||
| Cancelled, expired or forfeited | - | - | |||
| Outstanding at December | 1,187,352 | 3.43 | 2.84 years | $ | 3,811 |
| 31, | |||||
| 2022 | |||||
| Exercisable at December | 1,187,352 | $ 3.43 | 2.84 years | $ | 3,811 |
| 31, | |||||
| 2022 |
There were no stock options granted in 2022 or 2021.
A summary of the status of the Company's non-vested stock options as of December 31, 2022 and 2021 and c
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, 125,667 stock options vested during 2022. The document provides a summary of the status of the company's non-vested stock options as of December 31, 2022, and changes during the year. The table indicates that at January 1, 2022, there were 125,667 non-vested stock options. During 2022, 125,667 options vested, leaving zero non-vested stock options at the end of the year. The weighted average grant date fair value of these vested options was $1.00.
This information is relevant to prospective franchisees as it provides insight into Benihana's stock option activity and how it incentivizes its employees or executives. While franchisees typically do not participate directly in these stock option plans, understanding the company's overall compensation structure can offer a glimpse into its financial management and employee motivation strategies. The fact that no new stock options were granted in 2022, and that the existing non-vested options from the beginning of the year fully vested, suggests a specific phase in the company's equity compensation strategy.
It's important to note that the FDD also mentions that there were no stock options granted in 2023 or 2022, indicating a pause or change in the company's stock option granting practices during those years. Additionally, the 2013 Equity Plan was set to terminate automatically in October 2023, unless terminated earlier by the Board, which could influence future stock option grants. For a prospective franchisee, this data point contributes to a broader understanding of Benihana's financial and compensation strategies, which can be useful in assessing the stability and management practices of the company.