Share-Based and Other Deferred Compensation

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based and Other Deferred Compensation

Share-Based and Other Deferred Compensation

During the nine months endedSeptember 30, 2013, the Company granted employees 2,237 Service-based Awards. These awards had grant date fair values ranging from $26.60 to $50.33 per share. During the nine months endedSeptember 30, 2013, 2,083 Service-based Awards vested and 58 Service-based Awards were forfeited.

During the first quarter of 2011, the Company launched a deferred compensation program providing participants the ability to elect to receive a portion of their deferred compensation in deferred cash, which is indexed to a notional investment portfolio and vests ratably over four years and requires payment upon vesting. Compensation expense related to this deferred compensation program was $949 and $2,778for the three and nine months ended September 30, 2013, respectively, and $1,053 and $3,318for the three and nine months ended September 30, 2012, respectively.

Compensation expense related to Service-based Awards, excluding compensation costs related to the amortization of the LP Units, was $19,496 and $60,723for the three and nine months ended September 30, 2013, respectively, and $15,654 and $46,353for the three and nine months ended September 30, 2012, respectively. Compensation expense related to amortization of the LP Units was $4,820 and $15,243for the three and nine months ended September 30, 2013, respectively, and $5,464 and $15,293for the three and nine months ended September 30, 2012, respectively. Compensation expense related to acquisition-related awards and deferred cash consideration was $1,867 and $1,095, respectively, for the three months ended September 30, 2013, and $9,093 and $3,359, respectively, for the nine months endedSeptember 30, 2013. Compensation expense related to acquisition-related awards and deferred cash consideration was $4,457 and $2,036, respectively, for the three months ended September 30, 2012, and $15,089 and $6,657, respectively, for the nine months endedSeptember 30, 2012.

During the second quarter of 2013, the Company's stockholders approved the amended and restated 2006 Evercore Partners Inc. Stock Incentive Plan. The amended and restated plan, among other things, authorizes an additional 5,000 shares of the Company's Class A Shares.

On July 23, 2013, the Board of Directors of the Company approved the Long-term Incentive Plan, which provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over a four-year performance period beginning January 1, 2013. These awards will be paid, in cash or Class A shares, at the Company's discretion, in the two years following the performance period, to Senior Managing Directors employed by the Company at the time of payment (subject to retirement eligibility requirements). The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award. The compensation expense related to these awards was $630 for the three and nine months ended September 30, 2013.

Periodically, the Company provides compensation to new and existing employees in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements ranging from one to five years. Generally, the terms of these awards include a requirement of either full or partial repayment of these awards based on the terms of their employment agreements with the Company. The Company amortizes these awards to compensation expense over the relevant service period which is generally the period they are subject to forfeiture. Compensation expense related to these awards was $1,558 and $4,442 for the three and nine months ended September 30, 2013, respectively. The remaining unamortized amount of these awards was $10,723 as of September 30, 2013.

On October 23, 2013, the Board of Directors of the Company agreed to release the transfer restrictions associated with 1,267 LP Units and 610 Restricted Class A Shares held by certain employees of the Company.