Equity-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Equity-based compensation expense is primarily recorded in “salaries and benefits expense” and REIT equity-based compensation expense is primarily recorded in “reimbursed expenses” in our condensed consolidated statements of operations. The components of equity-based compensation expense for the three and six months June 30, 2020 and 2019 are presented below by award type (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020		2019
Equity-based compensation
Stock option amortization ⁽¹⁾	$	(397	)	$	2,043	$	1,692	$	4,194
Employee equity grant expense ⁽²⁾	247			57		352		57
Director and other non-employee equity grants expense ⁽³⁾	414			604		269		611
Total equity-based compensation	$	264		$	2,704	$	2,313	$	4,862

Other equity-based compensation
REIT equity-based compensation ⁽⁴⁾	$	2,309		$	6,615	$	9,200	$	12,483
	$	2,573		$	9,319	$	11,513	$	17,345

________

⁽¹⁾

As of June 30, 2020, the Company had approximately $5.8 million of total unrecognized compensation expense related to stock options that will be recognized over a weighted average period of 1.0 years. The change in three months ended June 30, 2020, is primarily due to the forfeiture of 98,603 options from the voluntary resignation of Douglas A. Kessler, Senior Managing Director of the Company, in May of 2020.

⁽²⁾

As of June 30, 2020, the Company had approximately $2.3 million of total unrecognized compensation expense related to restricted shares that will be recognized over a weighted average period of 2.6 years. Effective as of May 15, 2020, employee equity grant expense additionally includes common stock issued to Mr. Monty J. Bennett at fair value in lieu of cash for payment of his base salary pursuant to the Company’s 2014 Incentive Plan, as amended. See note 1.


⁽³⁾	Grants of restricted stock units to independent directors and other non-employees are recorded at fair value based on the market price of our shares at grant date, and this amount is expensed in “general and administrative” expense. See “Equity-based Compensation” in note 2.

⁽⁴⁾

REIT equity-based compensation expense is primarily recorded in “reimbursed expenses” and is associated with equity grants of Ashford Trust’s and Braemar’s common stock and LTIP units awarded to our officers and employees. See notes 2 and 14.