XML 70 R60.htm IDEA: XBRL DOCUMENT v3.23.3
Compensation (Tables)
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Compensation Cost for Share-Based Payment Arrangements
Newmark incurred compensation expense related to Class A common stock, limited partnership units and RSUs held by Newmark employees as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Issuance of common stock and exchangeability expenses$19,121 $33,330 $53,601 $69,188 
Allocations of net income to limited partnership units and FPUs (1)
3,076 4,875 3,439 12,808 
Limited partnership units amortization1,532 181 9,762 5,214 
RSU amortization5,819 5,702 18,003 15,764 
Equity-based compensation and allocations of net income to limited partnership units and FPUs$29,548 $44,088 $84,805 $102,974 
(1)Certain limited partnership units receive quarterly allocations of net income and are generally contingent upon services being provided by the unit holders, including the Preferred Distribution.
Compensation expense related to the issuance of Newmark or BGC Class A common stock and grants of exchangeability on Newmark Holdings and BGC Holdings (prior to the Corporate Conversion) limited partnership units to Newmark employees is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Issuance of common stock and exchangeability expenses$19,121 $33,330 $53,601 $71,211 
Newmark recognized compensation expense related to these limited partnership units that were not redeemed as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Limited partnership units amortization$1,532 $181 $9,762 $5,214 
Compensation expense related to Newmark and BGC RSUs are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
RSU amortization$5,819 $5,702 $18,003 $15,764 
Schedule of Activity Associated with Limited Partnership Units A summary of the activity associated with limited partnership units held by Newmark employees is as follows:
 
Newmark Holdings Units
BGC Holdings Units
Balance, January 1, 202218,419,613 8,663,930 
Issued15,402,041 25,032 
Redeemed/exchanged units(2,934,984)(3,169,063)
Forfeited units/other(198,716)(60,511)
Balance, December 31, 2022(1)
30,687,954 5,459,388 
Issued12,719,260 1,506 
Redeemed/exchanged units(1,999,907)(5,459,895)
Forfeited units/other(497,658)(999)
September 30, 2023 (2)
40,909,649 — 
Total exchangeable units outstanding(1):
December 31, 20227,861,359 2,654,749 
September 30, 2023 (2)
10,853,868 — 
(1)The Limited Partnership Units table above also includes partnership units issued as consideration for acquisitions. As of September 30, 2023, there were 3.2 million such partnership units in Newmark Holdings outstanding, of which 1.6 million units were exchangeable. As of December 31, 2022, there were 3.9 million such partnership units in Newmark Holdings outstanding, of which 1.5 million units were exchangeable, and 4.8 million such partnership units in BGC Holdings outstanding, of which 2.5 million were exchangeable.
(2)As of September 30, 2023, the total Limited Partnership Units included $2.0 million Newmark Preferred Units.
Schedule of Units Redeemed
A summary of units held by Newmark employees redeemed in connection with the issuance of Newmark or BGC Class A common stock (at the current Exchange Ratio) or granted exchangeability for Newmark or BGC Class A common stock is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
BGC Holdings Units
11,404 23,451 127,960 114,570 
Newmark Holdings Units
3,156,676 4,263,257 6,857,293 7,132,116 
Total3,168,080 4,286,708 6,985,253 7,246,686 
Schedule of Limited Partnership Units with a Post-Termination Payout Limited partnership units with a post-termination payout held by Newmark employees are as follows (dollars in thousands):
September 30, 2023December 31, 2022
Notional Value$160,349 $144,045 
Estimated fair value of the post-termination payout(1)
$50,699 $42,706 
Outstanding limited partnership units in Newmark Holdings16,700,196 14,277,213 
Outstanding limited partnership units in Newmark Holdings - unvested1,180,996 2,155,668 
Outstanding limited partnership units in BGC Holdings— 44,928 
(1)Included in “Other long-term liabilities” on the accompanying unaudited condensed consolidated balance sheets.
Schedule of Grant of Conversion Rights
The grant of exchange rights of HDUs to Newmark employees are as follows (in thousands):
September 30, 2023December 31, 2022
Notional Value$1,258 $8,189 
Estimated fair value of limited partnership units (1)
$1,133 $8,065 
(1)Included in “Other long-term liabilities” on the accompanying unaudited condensed consolidated balance sheets.
Schedule of Activity Associated with Restricted Stock Units A summary of the activity associated with Newmark and BGC RSUs held by Newmark employees is as follows (fair value amount in thousands):
Newmark RSUs(1)
BGC RSUs(2)
 Restricted
Stock
Units		Weighted-
Average
Grant Date
Fair Value
Per Share		Fair
Value
Amount		Weighted-
Average
Remaining
Contractual
Term (Years)		Restricted
Stock
Units		Weighted-
Average
Grant Date
Fair Value
Per Share		Fair
Value
Amount		Weighted-
Average
Remaining
Contractual
Term (Years)
Balance, January 1, 202210,721,457 $8.30 $89,025 4.965,375 $3.85 $21 1.16
Granted3,350,516 12.15 40,710 4,191 4.28 18 
Settled units (delivered shares)(2,464,570)8.33 (20,526)(2,638)3.69 (10)
Forfeited units(343,541)10.11 (3,474)— — — 
Balance, December 31, 202211,263,862 $9.39 $105,735 4.756,928 $4.17 $29 1.62
Granted3,621,408 6.89 24,960 — — — 
Settled units (delivered shares)(2,173,527)8.99 (19,535)(2,045)4.05 (8)
Forfeited units(229,000)10.08 (2,309)— — — 
Balance, September 30, 202312,482,743 $8.72 $108,851 4.164,883 $4.22 $21 0.87
(1)Beginning January 1, 2018, Newmark began granting Newmark RSUs to Newmark employees with the awards vesting ratably over the two- to nine-year vesting period into shares of Newmark Class A common stock.
(2)    BGC RSUs generally vest over a two to three year period.