Equity-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

8.EQUITY‑BASED COMPENSATION

2014 Omnibus Incentive Plan

In connection with the IPO, the Company adopted the Moelis & Company 2014 Omnibus Incentive Plan (the “Plan”) to provide additional incentives to selected officers, employees, Managing Directors, non‑employee directors, independent contractors, partners, senior advisors and consultants. The Plan provides for the issuance of incentive stock options (“ISOs”), nonqualified stock options, stock appreciation rights (“SARs”), restricted stock, RSUs, stock bonuses, other stock‑based awards (including partnership interests that are exchangeable into stock upon satisfaction of certain conditions) and cash awards.

Restricted Stock Units (RSUs) and other stock-based awards

Pursuant to the Plan and in connection with the Company’s annual compensation process and ongoing hiring process, the Company issues RSUs and other stock-based awards which generally vest over a service life of four to five years. For the years ended December 31, 2022, 2021 and 2020, the Company recognized expense of $128,938, $167,938 and $133,623, respectively, in relation to these awards.

The following table summarizes activity related to RSUs for the years ended December 31, 2022, 2021 and 2020.

	Restricted Stock Units
	2022			2021			2020
		Weighted			Weighted			Weighted
		Average			Average			Average
	Number of	Grant Date		Number of	Grant Date		Number of	Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value
Unvested Balance at January 1,	8,068,120	$	46.36	8,742,695	$	41.45	8,414,130	$	42.19
Granted	3,430,910		48.97	3,875,588		54.84	4,456,157		37.58
Forfeited	(306,906)		48.78	(432,846)		47.31	(149,592)		40.73
Vested	(3,092,495)		46.10	(4,117,317)		42.56	(3,978,000)		39.01
Unvested Balance at December 31,	8,099,629	$	47.49	8,068,120	$	46.36	8,742,695	$	41.45

In addition, the Company issues partnership units that are intended to qualify as "profits interest" for U.S. federal income tax purposes ("Partnership Units") that, subject to certain terms and conditions, are exchangeable into shares of Moelis & Company Class A common stock on a one-for-one basis. These Partnership Units are recorded as noncontrolling interests in the Company's consolidated statements of financial condition. Further, these Partnership Units generally vest over a service life of five years, however in certain arrangements the Partnership Units are granted without a service requirement, but do not have exchange rights until the third anniversary of the grant-date. During the years ended December 31, 2022 and 2021, the Company granted 809,899 and 395,834 Partnership Units, respectively, with a grant-date fair value of $38,413 and $21,672, respectively.

As of December 31, 2022, the total compensation expense related to unvested RSUs and other stock-based awards not yet recognized was $136,890, which is expected to be recognized over a weighted‑average period of 1.4 years.