Schedule of Employee Stock-Based Compensation Expense

Employee stock-based compensation expense under the Company’s Incentive Plan, net of the amount capitalized in internally developed software, is as follows (in thousands):


	Year Ended
	December 31,
	2023		2022		2021
Expense from time-based awards^(a)	$	12,305	$	16,103	$	21,042
Expense from performance-based awards^(a)(b)		3,718		2,175		6,073
Expense from bonus to be settled in shares^(c)		3,513		3,766		7,183
Equity-based compensation expense	$	19,536	$	22,044	$	34,298
Tax benefit from equity-based compensation		(2,834)		(3,238)		(5,052)
Deficit / (excess) tax benefit from equity-based compensation		965		536		(121)
Net compensation cost	$	17,667	$	19,342	$	29,125

(a)

During 2022, the Company recognized $2.2 million of expense upon the acceleration of certain grants issued in connection with the restructuring, as further discussed in Note 2, Summary of Significant Accounting Policies. In addition, during the third quarter of 2022, the Company recognized $1.4 million of expense upon acceleration of certain grants that were issued to two employees and former owners of an acquired company who departed during the third quarter of 2022.

(b)

Expense recognized for performance-based awards is re-assessed each quarter based on expectations of achievement against the performance conditions. During the first quarter of 2022, the Company had a significant amount of forfeitures related to performance-based awards issued to the Company’s former CEO which, subsequent to his departure, will no longer vest.

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

Schedule of Restricted Stock Units

The following table summarizes equity-based compensation activity related to time-based restricted stock units and restricted stock awards:


	Shares	Weighted average grant date fair value per share
Balance, January 1, 2023	611,102	$	32.23
Granted ^(a)(b)	1,019,620	$	15.50
Shares vested (including tax withholding) ^(c)	(458,707)	$	28.88
Forfeited	(105,421)	$	22.13
Balance, December 31, 2023	1,066,594	$	18.68

(a)

During the fourth quarter of 2023, the Company granted 287,364 time-based restricted stock units to the newly appointed CEO with a weighted average grant date fair value of $8.98 per share. All the restricted stock units remain outstanding as of December 31, 2023. These equity awards were made pursuant to the inducement award exception under the New York Stock Exchange Rule 303A.08 and were not granted from the 2023 Incentive Plan.

(b)	The weighted average grant date fair value per share for the years ended December 31, 2022 and 2021 were $32.23 and $36.84 respectively.

(c)	Pursuant to the terms of the Incentive Plans, 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.

Schedule of Restricted Stock Units

The following table summarizes equity-based compensation activity related to PSUs:


	Shares	Weighted average grant date fair value per share
Balance, January 1, 2023	143,199	$	33.47
Granted ^(a)(b)	826,062	$	7.95
Shares vested (including tax withholding) ^(c)	(134,114)	$	28.68
Forfeited	(51,757)	$	26.04
Balance, December 31, 2023	783,390	$	7.87

(a)	During the fourth quarter of 2023, the Company granted 580,648 performance-based restricted stock units to the newly appointed CEO with a weighted average grant date fair value of $2.99 per share. All the restricted stock units

remain outstanding as of December 31, 2023. These equity awards were made pursuant to the inducement award exception under the New York Stock Exchange Rule 303A.08 and were not granted from the 2023 Incentive Plan.

(b)	The weighted average grant date fair value per share for the years ended December 31, 2022 and 2021 were $33.47 and $31.02, respectively.

(c)	Pursuant to the terms of the Incentive Plans, 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.