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Stock-Based Awards
 12 Months Ended
Dec. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Awards
20. Stock-Based Awards
On June 20, 2016, the Company’s stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior
 
plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards. The Company also has issued from time to time stock-based awards outside a plan.
The Company grants equity awards to employees and directors which include restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and stock options. Certain awards described below are subject to acceleration under certain conditions.
     
Stock options:
 
Generally issued for terms of ten years and may vest after at least one year of service and have an exercise price equal to the Company’s stock price on the grant date. The Company estimates the fair value of stock options (when granted) using the Black-Scholes option pricing model.
 
 
 
RSAs/RSUs:
 
Awards are valued based on the Company’s stock price on grant date and generally vest ratably over three years.
 
 
 
PRSUs:
 
These awards cliff vest three years from grant date and contain a market condition whereby the number of PRSUs ultimately vesting is tied to how the Company’s total shareholder return (“TSR”) compares to a peer group of other publicly traded asset managers over the three-year period. A Monte Carlo simulation is used to value these awards.
 
 
 
 
 
 
 
 
The number of PRSUs vesting ranges from 0% to 200% of the target number of PRSUs granted, as follows:
 
 
 
 
 
 
 
 
•
If the relative TSR is below the 25
th
percentile, then 0% of the target number of PRSUs granted will vest;
 
 
 
 
 
 
 
 
•
If the relative TSR is at the 25
th
percentile, then 50% of the target number of PRSUs granted will vest; and
 
 
 
 
•
If the relative TSR is above the 25th percentile, then linear scaling is applied such that the percent of the target number of PRSUs vesting is 100% at the 50th percentile and capped at 200% of the target number of PRSUs granted for performance at the 100th percentile.
 
 
 
 
 
 
 
 
 
 
 
 
During the years ended December 31, 2019, 2018 and 2017, total stock-based compensation expense was $
11,590
, $
13,255
and $
14,717
, respectively, and the related tax benefit recognized on the Consolidated Statements of Operations was $
2,791
, $
3,015
and $
5,402
, respectively. Stock-based compensation expense during the year ended December 31, 2017 included $
525
as a result of a modification to accelerate vesting of certain awards on December 29, 2017 made to
20
employees, which were originally scheduled to vest in January 2018.
The actual tax benefit realized for the tax deductions for share-based compensation was $1,649, $2,364 and $7,684 during the years ended December 31, 2019, 2018 and 2017, respectively.
A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows:
                 
 
December 31, 2019
 
 
Unrecognized Stock-
Based
Compensation
 
  
Average
Remaining
Vesting Period
(Years)
 
Employees and directors
  $
15,190
     
1.61
 
 
 
 
 
 
 
 
 
 
 
Stock Options
A summary of option activity is as follows: 
                 
 
Options
 
  
Weighted-Average

Exercise Price
 
Outstanding January 1, 2017
   
1,368,247
    $
2.82
 
Granted
   
—  
      
—  
  
Forfeitures/expirations
   
—  
      
—  
  
Exercised
   
(209,419
 )    
3.17
 
                 
Outstanding at December 31, 2017
   
1,158,828
    $
2.75
 
Granted
   
—  
      
—  
  
Forfeitures/expirations
   
—  
      
—  
  
Exercised
   
(588,291
 )    
1.19
 
                 
Outstanding at December 31, 2018
   
570,537
    $
4.36
 
Granted
   
—
      
—
  
Forfeitures/expirations
   
(1
 )    
6.50
 
Exercised
   
(85,000
 )    
0.70
 
                 
Outstanding at December 31, 2019
(1)
    
485,536
    $
4.80
 
                 
 
 
 
 
 
 
 
 
 
 
 
(1)
 Expire on dates ranging from January 28, 2020 to November 15, 2021.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 was $301, $4,218 and $1,643, respectively. Cash received from option exercises during the years ended December 31, 2019, 2018 and 2017 was $160, $191 and $532, respectively
.
The following table summarizes information on stock options outstanding and exercisable at December 31, 2019:
                         
 
Options Outstanding and Exercisable
 
Range of Exercise Prices
 
Shares
 
  
Weighted-
Average
Remaining
Life
(Years)
 
  
Weighted-
Average
Exercise
Price
 
$2.25
 
–
 
$2.26
   
115,000
     
0.0
     
2.26
 
$5.05
   
250,000
     
0.9
     
5.05
 
$6.36 – $6.82
   
73,036
     
1.4
     
6.46
 
$7.01 – $7.30
   
47,500
     
1.8
     
7.07
 
                         
   
485,536
     
0.9
    $
4.80
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2019, outstanding options for 485,536 shares (all of which were exercisable) had a remaining average contractual term of 0.9 years and an intrinsic value of $297.
RSAs, RSUs and PRSUs
The aggregate fair value of RSAs, RSUs and PRSUs that vested during the years ended December 31, 2019, 2018 and 2017 was $6,720, $5,975 and $18,285, respectively. A summary of activity is as follows:
                                                 
 
RSAs
   
RSUs
   
PRSUs
 
 
Shares
 
  
Weighted
Average
Grant Date
Fair Value
 
  
Shares
 
  
Weighted
Average
Grant Date
Fair Value
 
  
Shares
 
  
Weighted
Average
Grant Date
Fair Value
 
Unvested Balance at January 1, 2017
   
2,436,454
    $
13.58
     
—  
     $
—  
      
—  
     $
—  
  
Granted
   
1,068,550
     
10.51
      
7,231
     
10.49
      
—  
      
—  
  
Vested
   
(1,641,870
 )    
13.64
      
—  
      
—  
      
—  
      
—  
  
Forfeited
   
(46,468
 )    
12.36
      
(1,553
 )    
10.83
      
—  
      
—  
  
                                                 
Unvested Balance at December 31, 2017
   
1,816,666
    $
11.75
     
5,678
    $
10.40
     
—  
     $
—  
  
Granted
   
903,231
     
11.77
      
7,152
     
12.21
      
—  
      
—  
  
Vested
   
(618,516
 )    
12.67
      
(1,890
 )    
10.40
      
—  
      
—  
  
Forfeited
   
(144,279
 )    
11.83
      
(1,446
 )    
11.97
      
—  
      
—  
  
                                                 
Unvested Balance at December 31, 2018
   
1,957,102
    $
11.47
     
9,494
    $
11.52
     
—
     $
—
  
Granted
   
2,794,703
     
6.16
      
35,283
     
6.45
      
270,872
(1)
 		    
6.24
  
Vested
   
(1,053,980
 )    
11.25
      
(5,499
 )    
9.85
      
—
      
—
  
Forfeited
   
(453,267
 )    
9.09
      
—
      
—
      
(38,262
)
    
6.24
  
                                                 
Unvested Balance at December 31, 2019
   
3,244,558
    $
7.29
     
39,278
    $
7.20
     
232,610
(1)
 		   $
6.24
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 Represents the target number of PRSUs granted and outstanding. The number of PRSUs that ultimately vest ranges from 0% to 200% of this amount. A Monte Carlo simulation was used to value these awards using the following assumptions for the Company and the peer group: (i) beginning
90-day
average stock prices; (ii) valuation date stock prices; (iii) historical stock price volatilities ranging from 22% to 42% (average 28%); (iv) correlation coefficients based upon the price data used to calculate the historical volatilities; (v) a risk free interest rate of 2.56%; and (vi) an expected dividend yield of 0%.