Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 99

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 1
Chunk 99
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 30, 2025, there was $3.6 million of unrecognized compensation costs related to awards expected to be recognized over a weighted-average period of 1.4 years.
    
   Executive Compensation Program
    
   The Company operates a compensation program for key employees.  The plan contains both an annual component as well as a long-term component.  Under the annual component, participants  may elect to defer up to 50% of their annual incentive compensation in restricted stock which is purchased at a 25% discount to the market.  Additionally, non-employee directors of the Company  may defer a portion of their director’s fees in restricted stock units which is purchased at a 25% discount to the market.  During the restriction period, recipients of the shares are entitled to dividend equivalents on such units, providing that such shares are not forfeited. 
    
   Dividend equivalents are accumulated and paid out at the end of the restriction period.  The restrictions on the units expire after three years.  Restrictions on non-vested annual component  awards generally lapse between fiscal year 2025 and fiscal year 2027.  The compensation expense associated with this incentive program is charged to income over the restriction period.  The Company recorded compensation expense related to this program of $1.6 million, $0.9 million, and $0.2 million for the years ended  June 30, 2025, 2024 and 2023, respectively.
    
   As of  June 30, 2025, there was $0.4 million of unrecognized compensation costs related to awards expected to be recognized over a weighted-average period of 0.8 years.
    
   The fair value of the awards under the annual component of this incentive program is measured using the Black-Scholes option-pricing model.  Key assumptions used to apply this pricing model are as follows:

       2025    2024    2023  
 Risk-free interest rates   3.69%  4.52%  4.52%
 Expected life of option grants (in years)   3   3   3 
 Expected volatility of underlying stock   34.1%  29.5%  29.5%
 Expected quarterly dividends (per share)  $0.32  $0.28  $0.28 

   Under the long-term component, grants of performance