EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2023

11. EARNINGS PER SHARE

The Company has Class A and non-voting common stock outstanding. The non-voting common stock has the same economic rights as the Class A common stock; therefore, earnings per share is presented on a combined basis. Income of the Company has been allocated on a proportionate basis to the two common stock classes.

Basic earnings per share of Class A and non-voting common stock is computed by using the two-class method. Diluted earnings per share of Class A and non-voting common stock is computed using the more dilutive method of either the two-class method or the treasury stock method.

For the years ended December 31, 2023 and 2021, the treasury stock method was the more dilutive method. For the year ended December 31, 2022, the two-class method was the more dilutive method.

The computation of diluted earnings per share excludes the following restricted units and AOG Units as their effect would have been anti-dilutive:


	Year ended December 31,
		2023	2022	2021

Restricted units		2,071	—	132
AOG Units		118,804,252	—	116,226,798

The following table presents the computation of basic and diluted earnings per common share:


	Year ended December 31,
		2023		2022		2021
Basic earnings per share of Class A and non-voting common stock:
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders		$	474,326	$	167,541	$	386,748
Dividends declared and paid on Class A and non-voting common stock		(571,923)		(429,104)		(309,835)
Distributions on unvested restricted units		(21,303)		(14,096)		(10,986)
Undistributed earnings allocable to participating unvested restricted units		—		—		(7,138)
Undistributed net income (dividends in excess of earnings) available to Class A and non-voting common stockholders		$	(118,900)	$	(275,659)	$	58,789
Basic weighted-average shares of Class A and non-voting common stock		184,523,524		175,510,798		163,703,626
Undistributed basic earnings (dividends in excess of earnings) per share of Class A and non-voting common stock		$	(0.64)	$	(1.57)	$	0.36
Dividend declared and paid per Class A and non-voting common stock		3.08		2.44		1.88
Basic earnings per share of Class A and non-voting common stock		$	2.44	$	0.87	$	2.24

Diluted earnings per share of Class A and non-voting common stock:
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders		$	474,326	$	167,541	$	386,748
Distributions on unvested restricted units		—		(14,096)		—
Net income available to Class A and non-voting common stockholders		$	474,326	$	153,445	$	386,748
Effect of dilutive shares:
Restricted units		9,347,318		—		11,209,144
Options		1,902,584		—		5,199,501

Diluted weighted-average shares of Class A and non-voting common stock		195,773,426		175,510,798		180,112,271
Diluted earnings per share of Class A and non-voting common stock		$	2.42	$	0.87	$	2.15