
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 the 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 25th percentile, then 0% of the target number of PRSUs granted will vest;

		• If the relative TSR is at the 25th 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 85th percentile (or 100th percentile for grants made during 2019 and 2020).

Stock-based compensation expense during

the three months ended March 31, 2021 and 2020 was $3,143 and $3,239, respectively.

A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows:


	March 31, 2021
	Unrecognized Stock- Based Compensation		Average Remaining Vesting Period (Years)
Employees and directors	$	16,488		1.70

A summary of stock-based compensation award activity during the three months ended March 31, 2021 is as follows:


	Stock Options			RSAs			RSUs			PRSUs
Balance at January 1, 2021		305,000			3,580,743			39,408			341,312
Granted		—			1,501,123			29,389			257,043	(1)
Exercised/vested		(75,000	)		(1,243,763	)		(15,136	)		—
Forfeitures		(115,000	)		(7,302	)		—			—

Balance at March 31, 2021		115,000			3,830,801			53,661			598,355

(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 34% to 57% (average 44%); (iv) correlation coefficients based upon the price data used to calculate the historical volatilities; (v) a risk free interest rate of 0.17%; and (vi) an expected dividend yield of 0%.