Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Employee Stock-Based Compensation Expense

Employee equity-based compensation expense under the RE/MAX Holdings, Inc. 2013 Omnibus Incentive Plan (the “Incentive Plan”), net of the amount capitalized in internally developed software, is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Expense from time-based awards (a)(b)	$	3,756	$	3,040	$	17,321	$	7,535
Expense from performance-based awards (a)(c)		3,188		374		4,855		844
Expense from bonus to be settled in shares (d)		2,064		—		5,139		—
Equity-based compensation capitalized		—		—		—		(32)
Equity-based compensation expense	$	9,008	$	3,414	$	27,315	$	8,347

(a) Includes awards granted to booj, First, wemlo and Gadberry employees and former owners at the time of acquisition.

(b) During the nine months ended September 30, 2021, the Company recognized $5.5 million of expense as a result of the acceleration of significant grants that were issued to two employees of an acquired company who departed during the first quarter of 2021.

(c) Expense recognized for performance-based awards is re-assessed each quarter based on expectations of achievement against the performance conditions. The acquisition of INTEGRA significantly increased the expected performance against the revenue performance condition resulting in an increase in expense for those awards.

(d) A portion of the annual corporate bonus earned is to be settled in shares. These amounts are recognized as “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets and are not included in “Additional paid-in capital” until the shares are issued.

Time-based awards

Restricted Stock Units

	Shares	Weighted average grant date fair value per share
Balance, January 1, 2021	1,018,008	$	36.74
Granted	268,858	$	39.16
Shares vested (including tax withholding) (a)	(498,446)	$	37.78
Forfeited	(20,545)	$	38.05
Balance, September 30, 2021	767,875	$	36.88

(a) Pursuant to the terms of the Incentive Plan, shares withheld by the Company for the payment of the employee's tax withholding related to shares vesting are added back to the pool of shares available for future awards.

Performance-based awards

Restricted Stock Units

The following table summarizes equity-based compensation activity related to performance-based restricted stock units:

	Shares	Weighted average grant date fair value per share
Balance, January 1, 2021	281,735	$	32.34
Granted (a)	56,716	$	40.07
Forfeited	(2,843)	$	28.77
Balance, September 30, 2021	335,608	$	33.68

(a) Represents the total participant target award.