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EQUITY COMPENSATION | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
EQUITY COMPENSATION | 11. EQUITY COMPENSATION Equity Incentive Plan In April 2023, the Company’s board of directors approved the Company’s 2023 Equity Incentive Plan (the “Equity Incentive Plan”), subject to approval by stockholders, to replace the Third Amended and Restated 2014 Equity Incentive Plan (“2014 Equity Incentive Plan”). The Equity Incentive Plan was approved by stockholders on June 12, 2023 and as of that date, the number of shares available for issuance under the Equity Incentive Plan was 69,122,318 and may reset on January 1 of each year, based on a formula set forth in the Equity Incentive Plan. No new equity-based compensation awards will be granted under the 2014 Equity Incentive Plan. As of September 30, 2023, 69,152,767 shares remained available for issuance under the Equity Incentive Plan. Generally, unvested restricted units are forfeited upon termination of employment in accordance with the Equity Incentive Plan. The Company recognizes forfeitures as a reversal of previously recognized compensation expense in the period the forfeiture occurs. Equity-based compensation expense, net of forfeitures, recorded by the Company is presented in the following table:
| Three months ended September 30, |  | Nine months ended September 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |
Restricted units | $ | 61,976 |  |  | $ | 48,117 |  |  | $ | 193,509 |  |  | $ | 151,403 |  |  |  |  |
Restricted Units Each restricted unit represents an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date. The restricted units generally vest and are settled in shares of Class A common stock either: (i) at a rate of one-third per year, beginning on the third anniversary of the grant date; (ii) at a rate of one quarter per year, beginning on the second anniversary of the grant date or the holder’s employment commencement date or (iii) at a rate of one-third per year, beginning on the first anniversary of the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions). Compensation expense associated with restricted units is recognized on a straight-line basis over the requisite service period of the award. Restricted units are delivered net of the holder’s payroll related taxes upon vesting. For the nine months ended September 30, 2023, 3.6 million restricted units vested and 2.1 million shares of Class A common stock were delivered to the holders. For the nine months ended September 30, 2022, 5.4 million restricted units vested and 3.0 million shares of Class A common stock were delivered to the holders. The holders of restricted units, other than awards that have not yet been issued as described in the subsequent sections, generally have the right to receive as current compensation an amount in cash equal to: (i) the amount of any dividend paid with respect to a share of Class A common stock multiplied by (ii) the number of restricted units held at the time such dividends are declared (“Dividend Equivalent”). When units are forfeited, the cumulative amount of Dividend Equivalents previously paid is reclassified to compensation and benefits expense within the Condensed Consolidated Statements of Operations. The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the nine months ended September 30, 2023:
Record Date |  | Dividends Per Share |  | Dividend Equivalents Paid
March 17, 2023 |  | $ | 0.77 |  |  | $ | 12,032 |
June 16, 2023 |  | 0.77 |  |  | 11,874 |
September 15, 2023 |  | 0.77 |  |  | 11,704 |
During the first quarter of 2023, the Company approved the future grant of restricted units to certain senior executives in each of 2024, 2025 and 2026, subject to the holder’s continued employment and acceleration in certain instances. The vesting period of these awards are at a rate of 25% per year, beginning on the second anniversary of the grant date. Given that these future restricted units have been communicated to the recipient, the Company accounts for these awards as if they have been granted and recognizes the compensation expense on a straight-line basis over the service period. The restricted units that have been approved and communicated but not yet granted are not eligible to receive a Dividend Equivalent until the grant date. The following table presents unvested restricted units’ activity:
| Restricted Units |  | Weighted Average Grant Date Fair Value Per Unit |  |
Balance as of December 31, 2022 | 16,662,999 |  |  | $ | 48.76 |  |  |
Granted | 4,749,923 |  |  | 78.81 |  |  |
Vested | (3,608,734) |  |  | 38.30 |  |  |
Forfeited | (229,216) |  |  | 58.36 |  |  |
Balance as of September 30, 2023 | 17,574,972 |  |  | $ | 58.91 |  |  |
The total compensation expense expected to be recognized in all future periods associated with the restricted units is approximately $712.9 million as of September 30, 2023 and is expected to be recognized over the remaining weighted average period of 3.3 years. Options Upon exercise, each option entitles the holders to purchase from the Company one share of Class A common stock at the stated exercise price. The term of the options is generally 10 years, all of which expire in May 2024. A summary of options activity during the nine months ended September 30, 2023 is presented below:
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life (in years) |  | Aggregate Intrinsic Value
Balance as of December 31, 2022 | 5,170,219 |  |  | $ | 19.00 |  |  | 1.3 |  | $ | 255,616 |
Exercised | (4,799,446) |  |  | 19.00 |  |  | — |  |  | — |
Expired | — |  |  | — |  |  | — |  |  | — |
Forfeited | — |  |  | — |  |  | — |  |  | — |
Balance as of September 30, 2023 | 370,773 |  |  | $ | 19.00 |  |  | 0.6 |  | $ | 31,097 |
Exercisable as of September 30, 2023 | 370,773 |  |  | $ | 19.00 |  |  | 0.6 |  | $ | 31,097 |
Net cash proceeds from exercises of stock options were $80.4 million for the nine months ended September 30, 2023. The Company realized tax benefits of approximately $49.7 million from those exercises.

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