The Company maintains compensation arrangements with certain of its Affiliates whereby in exchange for continued service, Affiliate equity is either purchased by, or granted to Affiliate key employees subject to a limit imposed by the Company, and may be repurchased either by Affiliate key employees or by the Company at a future date at the then applicable fair value, subject to service requirements having been met. Compensation expense is recognized over the requisite service period equal to the cumulative vested fair value of the award at the end of each period up to vesting date.

The Company accounts for these arrangements as “cash-settled” share-based payments, and accordingly a corresponding share-based payment liability is recorded. The fair value of the liabilities are determined with the assistance of third party valuation specialists using discounted cash flow analyses, which incorporate assumptions for the forecasted earnings information, market risk adjustments, discount rates and post-vesting restrictions. Vested Affiliate equity liabilities are revalued at each period end until settlement date, with changes in the liabilities included within compensation expense.


	2021		2020		2019
Balance, beginning of period	$	25.0	$	33.2	$	35.4
Amortization and revaluation of granted awards	5.4		2.0		(0.4)

Affiliate disposals	(0.8)		—		—
Repurchases (cash-settled)	(1.5)		(10.2)		(1.8)
Balance, end of period	$	28.1	$	25.0	$	33.2

The Company has established various plans under which it is authorized to grant restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance-based restricted stock awards (“Performance-based RSAs”), performance-based restricted stock units (“Performance-based RSUs”) and stock option awards. These plans are maintained to provide equity-based compensation arrangements to employees and non-executive directors. Equity ownership encourages employees and directors to act in the best long-term interests of the Company. As of December 31, 2021, the Company had 4.6 million shares of common stock available to be granted under the various plans.

Compensation expense recognized by the Company for the years ended December 31, 2021, 2020 and 2019 in relation to these awards was $1.9 million, $2.5 million, and $6.2 million respectively. The related income tax benefit recognized for years ended December 31, 2021, 2020 and 2019 was $0.3 million, $0.4 million and $0.5 million respectively. Unamortized compensation expense related to unvested RSAs, RSUs, Performance-based RSAs, Performance-based RSUs and stock options at December 31, 2021 of $2.7 million is expected to be recognized over a weighted-average period of 1.4 years. The service inception date for annual awards granted in 2021 is deemed to be January 1, 2020. It is anticipated that annual awards for 2021 with a fair value of $0.8 million will be granted during 2022 with a service inception date of January 1, 2021.


	2021			2020			2019
BrightSphere Investment Group Inc. awards	Shares granted	Weighted average fair value		Shares granted	Weighted average fair value		Shares granted	Weighted average fair value
RSAs	—	$	—	—	$	—	18,000	$	10.09
RSUs	15,548	22.06		105,678	10.20		88,980	12.40

Performance-based RSUs	—	—		—	—		9,013	14.62
Stock options	—	—		2,820,000	0.65		2,070,000	2.48


	2021			2020			2019
BrightSphere Investment Group Inc. RSAs	Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share
Outstanding at beginning of the year	14,010	$	13.26	77,217	$	14.43	325,976	$	14.83

Granted during the year	—	—		—	—		18,000	10.09
Forfeited during the year	(1,500)	10.09		(6,447)	14.19		(47,453)	15.43
Vested during the year	(10,010)	14.53		(56,760)	14.75		(219,306)	14.45

Outstanding at end of the year	2,500	$	10.09	14,010	$	13.26	77,217	$	14.43

The grant date fair value per share, calculated based on the closing price as quoted on the New York Stock Exchange on the measurement date, is used to determine the fair value of restricted stock awards granted to employees. There were no RSAs granted by the Company during the year ended December 31, 2021. Restricted stock awards under the plan generally have a vesting period of one to three years.


	2021			2020			2019
BrightSphere Investment Group Inc. RSUs	Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share
Outstanding at beginning of the year	60,364	$	10.53	62,899	$	11.79	47,191	$	14.46
Granted during the year	15,548	22.06		105,678	10.20		88,980	12.40
Forfeited during the year	(2,345)	10.30		(30,927)	10.83		(24,591)	14.46
Vested during the year	(34,864)	10.35		(77,286)	10.99		(48,681)	14.14

Outstanding at end of the year	38,703	$	15.33	60,364	$	10.53	62,899	$	11.79

The grant date fair value per share, calculated based on the closing price as quoted on the New York Stock Exchange on the measurement date, is used to determine the fair value of restricted stock units granted to employees. Restricted stock units under the plan generally have a vesting period of one to three years.


	2021			2020			2019
BrightSphere Investment Group Inc. Performance-based RSAs	Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share
Outstanding at beginning of the year	83,092	$	9.78	258,678	$	10.11	258,678	$	10.11


Vested during the year	(36,007)	9.78		—	—		—	—
Other movements	(47,085)	9.78		(175,586)	10.26		—	—
Outstanding at end of the year	—	$	—	83,092	$	9.78	258,678	$	10.11

Other movements includes performance-based RSAs that did not meet the market vesting condition and did not vest during the year ended December 31, 2021. There were no performance-based RSAs granted by the Company during the years ended December 31, 2021, 2020, and 2019, respectively.


	2021			2020			2019
BrightSphere Investment Group Inc. Performance-based RSUs	Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share		Number of shares	Weighted average grant date fair value per share
Outstanding at beginning of the year	9,013	$	14.62	9,013	$	14.62	189,335	$	10.92
Granted during the year	—	—		—	—		9,013	14.62

Vested during the year	—	—		—	—		(193,125)	10.98
Other movements	—	—		—	—		3,790	14.15
Outstanding at end of the year	9,013	$	14.62	9,013	$	14.62	9,013	$	14.62

There were no performance-based RSUs granted by the Company during the years ended December 31, 2021 and 2020, respectively. The Performance-based RSUs granted in 2019 by the Company have a market vesting condition; therefore a Monte-Carlo simulation model has been used to determine the fair value of the restricted units granted to employees. Significant assumptions utilized in the Monte-Carlo simulation model include assumed reinvestment of dividends, the risk-free interest rate of 2.48%, and expected volatility of 26.11%, which is based on an average volatility of the Company’s peer group. Performance-based RSUs under the plan have a vesting period of three years.


	2021
	Stock Options	Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at beginning of the year	7,375,000	$	11.38	3.4
Granted during the year	—	—
Forfeited during the year	—	—
Exercised during the year	(4,405,037)	11.57
Outstanding at end of the year	2,969,963	$	11.09	2.5	$	43,091,497
Exercisable at end of the year	911,963	$	11.56	2.3	$	12,802,697


	2020
	Stock Options	Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at beginning of the year	8,970,000	$	12.00	4.0
Granted during the year	2,820,000	10.37		4.8
Forfeited during the year	(4,396,000)	12.00
Exercised during the year	(19,000)	12.00
Outstanding at end of the year	7,375,000	$	11.38	3.4	$	58,290,000
Exercisable at end of the year	4,288,000	$	11.73	3.2	$	32,366,640


	2019
	Stock Options	Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at beginning of the year	6,900,000	$	12.00	5.0
Granted during the year	2,070,000	12.00		5.0
Forfeited during the year	—	—
Exercised during the year	—	—
Outstanding at end of the year	8,970,000	$	12.00	4.0	$	—
Exercisable at end of the year	3,174,000	$	12.00	4.0	$	—

There were no stock options granted by the Company during the year ended December 31, 2021. The Company granted stock options with a fair value of $1.8 million and $5.1 million during the years ended December 31, 2020 and 2019, respectively. The total fair value of options vested during the years ended December 31, 2021, 2020 and 2019 was $1.3 million, $1.5 million and $4.3 million, respectively. The Company received $2.7 million and $0.2 million related to the exercise of options for the year ended December 31, 2021, and 2020, respectively. The Company realized tax benefits of $0.6 million and $0.0 million related to the exercise of options for the year ended December 31, 2021, and 2020, respectively. Shares issued upon exercise of the options represent newly issued shares.

The fair value of the stock options grant was estimated on the grant date using a Monte-Carlo simulation valuation model. The weighted average fair value of stock options granted during the years ended December 31, 2020 and 2019 was $0.65 and $2.48 per option, respectively, based on the grant date assumptions stated below.


	2021		2020		2019
Weighted-average grant date fair value per option	$	—	$	0.65	$	2.48
Assumptions:
Dividend yield (1)	—%		3.9% to 7.4%		3.4		%
Expected volatility (2)	—%		29.7% to 41.3%		28.4		%
Risk-free interest rate (3)	—%		1.4% to 0.3%		2.6		%
Expected life of options (4)	0		4.7 years to 5.0 years		5.0 years