Stock-Based Awards

9 Months Ended

Sep. 30, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Awards

17. Stock-Based Awards

On July 15, 2022, the Company’s stockholders approved the 2022 Equity Plan under which the Company may issue up to 16,000,000 shares of common stock (less one share for every share granted under the 2016 Equity Plan since March 31, 2022 and inclusive of shares available under the 2016 Equity Plan as of March 31, 2022) in the form of stock options and other stock-based awards.

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 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). •   If the Company’s TSR is negative, the target number of PRSUs vesting is capped at 100% regardless of the relative TSR percentile.

Stock-based compensation expense was $2,454 and $7,822, respectively, during the three and nine months ended September 30, 2022, and $2,397 and $7,661, respectively, during the comparable periods in 2021.

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

	September 30, 2022
	Unrecognized Stock- Based Compensation		Average Remaining   Vesting Period (Years)
Employees and directors	$	15,109	1.63

A summary of stock-based compensation award activity (shares) during the three months ended September 30, 2022 is as follows:

	RSAs			RSUs			PRSUs
Balance at July 1, 2022		3,399,274			47,656			668,188
Granted		82,458			95,687			—
Exercised/vested		(19,210	)		—			—
Forfeitures		(69,272	)		(1,380	)		—
Balance at September 30, 2022		3,393,250			141,963			668,188