Global Medical REIT Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of time-based vesting LTIP unit activity

The time-based vesting LTIP Unit activity under the Plan during the year ended December 31, 2019 was as follows:


LTIP Units outstanding as of December 31, 2018		588
LTIP Units earned and granted via the 2018 performance program – Annual Awards (1)		108
LTIP Units granted on a discretionary basis related to the Annual Awards (2)		28
LTIP Units granted as 2019 long-term time based awards (3)		54
LTIP Units granted to independent directors of the Board (4)		22
LTIP Units – other grant and forfeitures, net (5)		(42)
LTIP Units outstanding as of December 31, 2019		758

⁽¹⁾

The 108 LTIP Units represents earned and granted units from the previously disclosed 2018 annual awards (the “Annual Awards”). On March 5, 2019 the Compensation Committee of the Board (the “Compensation Committee”) determined the extent to which the Company achieved the performance goals related to the 2018 Annual Awards and determined the number of LTIP Units that each grantee was entitled to receive. These grants vested 50% on March 5, 2019, the determination date, and 50% vest on March 5, 2020.

⁽²⁾

The 28 LTIP Units represents a discretionary grant by the Board. These grants vested 50% on March 5, 2019, the grant date, and 50% vest on March 5, 2020.

⁽³⁾

The 54 LTIP Units represent grants approved by the Board on March 5, 2019 pursuant to the Company’ 2019 Long-Term Incentive Plan. These grants are valued based on the Company’s common stock price on the date of grant of $10.07 and vest in equal one-third increments on each of March 5, 2020, March 5, 2021, and March 5, 2022.

⁽⁴⁾

The 22 LTIP Units represent a grant to the independent directors of the Board made on May 29, 2019, which vest on May 29, 2020.

⁽⁵⁾

The net decrease of 42 LTIP Units net represents 45 LTIP Units redeemed for the Company’s common stock and one LTIP Unit that was forfeited, partially offset by three LTIP Units that were granted on March 15, 2019 and one LTIP Unit granted on December 9, 2019, both related to new hires. The LTIP Units granted to the new hires vest in equal one-third increments from the date of grant.

A detail of the vested and unvested LTIP Units outstanding as of December 31, 2019 is as follows:


Total vested units		516
Unvested units:
Granted to employees of the Advisor		220
Granted to the Company’s independent directors		22
Total unvested units		242
LTIP Units outstanding as of December 31, 2019		758

Schedule of of the Annual Awards and Long-Term Awards

A detail of the Annual Awards and Long-Term Awards under the 2017, 2018, and 2019 programs as of December 31, 2019 is as follows:


	2017 Program	2018 Program		2019 Program
	Long-Term	Annual	Long-Term	Annual	Long-Term	Total

Net annual and long-term LTIP awards as of December 31, 2018 (at target)	96	161	110	—	—	367
LTIP Unit target grants via the 2019 Performance Program – Annual Awards and Long-Term Awards (1)	—	—	—	133	82	215
LTIP Units earned and granted via the 2018 Performance Program – Annual Awards (2)	—	(108)	—	—	—	(108)
LTIP Units granted on a discretionary basis via the 2018 Performance Program – Annual Awards (2)	—	(28)	—	—	—	(28)
LTIP Units not earned under the 2018 Performance Program – Annual Awards (3)	—	(25)	—	—	—	(25)
Net annual and long-term LTIP awards as of December 31, 2019 (at target)	96	—	110	133	82	421

⁽¹⁾

These target Annual Awards and Long-Term Awards were approved by the Board on March 5, 2019.

⁽²⁾

These amounts represent grants from the 2018 program Annual Awards. Refer to the “Time-Based Grants” table above which presents these grants as earned and time-based.

⁽³⁾

On March 5, 2019 the Compensation Committee determined the extent to which the Company achieved the performance goals and concluded that these target awards were not achieved.

Schedule of of the assumptions for the Long-Term Awards using Monte Carlo simulations

Below are details regarding certain of the assumptions for the Long-Term Awards using Monte Carlo simulations:


	2019 Long-Term			2018 Long-Term			2017 Long-Term
	Awards			Awards			Awards
Fair value	$	10.07		$	8.86		$	8.86
Target awards		82			110			96
Volatility		31.7	%		33.8	%		33.8% - 35.4	%
Risk-free rate		2.5	%		2.6	%		2.4% - 2.6	%
Dividend assumption		reinvested			reinvested			reinvested
Expected term in years		3			2.7			1.7 - 2.7