Equity-Based Compensation (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019 are presented below by award type (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Equity-based compensation
Stock option amortization ⁽¹⁾	$	1,454	$	2,070	$	3,146	$	6,264
Employee equity grant expense ⁽²⁾	221		14		573		71
Director and other non-employee equity grants expense ⁽³⁾	100		5		369		615
Total equity-based compensation	$	1,775	$	2,089	$	4,088	$	6,950

Other equity-based compensation
REIT equity-based compensation ⁽⁴⁾	$	4,088	$	6,743	$	13,288	$	19,226
	$	5,863	$	8,832	$	17,376	$	26,176

________

⁽¹⁾

As of September 30, 2020, the Company had approximately $4.3 million of total unrecognized compensation expense related to stock options that will be recognized over a weighted average period of 0.8 years. The nine months ended September 30, 2020, includes 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 September 30, 2020, the Company had approximately $2.1 million of total unrecognized compensation expense related to restricted shares that will be recognized over a weighted average period of 2.3 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 stock, restricted stock and 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.