Stock Based Compensation

12 Months Ended

Dec. 31, 2013

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

Stock-Based Compensation

Stock Based Compensation

The LTIP was adopted in July 2013 and provides for the grant of equity-based awards, including options to purchase shares of Class A common stock, Class A stock appreciation rights, Class A restricted stock, Class A restricted stock units and performance awards. The LTIP will automatically expire on the tenth anniversary of its effective date. The Company’s board of directors may terminate or amend the LTIP at any time, subject to any stockholder approval required by applicable law, rule or regulation.

The number of shares of the Company’s Class A common stock that may be issued under the LTIP is 1,834,300 shares. To the extent that shares of the Company’s Class A common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the LTIP are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of the Company’s Class A common stock generally shall again be available under the LTIP, subject to certain exceptions.

On July 23, 2013, the Company granted an aggregate of 430,333 RSUs under the LTIP to certain of its employees and members of its board of directors. The RSUs granted to the Company’s employees are subject to the following vesting schedule: a) one-third vested on December 31, 2013, b) one-third will vest on the first anniversary of the grant date and c) one-third will vest on the second anniversary of the grant date. The RSUs granted to certain members of the Company’s board of directors will vest on the first anniversary of the grant date. 140,778 RSUs vested during the year ended December 31, 2013. No RSUs were forfeited during the year ended December 31, 2013. The grant-date fair value of the equity based incentive units granted during the period ended December 31, 2013 was $6.5 million.

During the year ended December 31, 2013, the Company recognized $2.2 million as stock based compensation expense, which is included in general and administrative expense. No stock based compensation awards were outstanding during 2012 and 2011, accordingly, no stock based compensation expense was recognized during 2012 and 2011.

A summary of RSU activity is as follows:

	RSU
Outstanding and unvested at January 1, 2013	—
Granted	430,333
Vested	(140,778	)
Outstanding and unvested at December 31, 2013	289,555