EQUITY-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

EQUITY-BASED COMPENSATION In 2015, we established a Nonqualified Stock Option and Incentive Award Plan (“Incentive Plan”) which provides for the ability to award equity compensation awards in the form of stock options to eligible employees, consultants, directors, and other individuals who provide services to us, each as determined by the Compensation Committee of the Board of Directors.

In August 2022, in connection with the spin-off of our Infrastructure business, each FTAI option held by eligible employees, consultants, directors and other individuals who provide services to us was converted into an adjusted FTAI option and a new FTAI Infrastructure option. The exercise price of each adjusted FTAI Infrastructure option was set to collectively maintain the intrinsic value of the FTAI option immediately prior to the spin-off and to maintain the ratio of the exercise price of the adjusted FTAI option and the FTAI Infrastructure option, respectively, to the fair market value of the underlying shares.

The following tables present information for our stock options:


	Stock Options
	Options	Weighted Average Exercise Price
Outstanding as of December 31, 2021	3,762,742	$	21.02
Granted	—	—
Less: exercised / vested	2,027,426	14.52
Less: forfeited and canceled	—	—
Outstanding as of December 31, 2022	1,735,316


	Stock Options
As of December 31, 2022:
Weighted average exercise / issuance price (per share)	$	22.67
Aggregate intrinsic value (in thousands)	$	128
Weighted average remaining contractual term (in years)	8.5

During the year ended December 31, 2022, the Manager transferred 336,862 of its options to certain of the Manager’s employees.

Stock Options

In connection with our equity offerings (see Note 15 for details), we granted options to the Manager related to ordinary shares. The fair value of these options was recorded as an increase in equity with an offsetting reduction of capital proceeds received.

The following table presents information related to the options related to our shares:


		Year Ended December 31,
		2021					2020
Number of options		1,684,318					129,988
Fair value ($ millions)		$13.8					$0.7
Ranges
Expected volatility	The expected share volatility is based on an assessment of the volatility of our publicly traded ordinary shares	44.78	%	-	45.60	%	61.27	%	-	62.12	%
Risk free interest rate	The risk-free rate is determined using the implied yield currently available on U.S. government bonds with a term consistent with the expected term on the date of grant.	1.34	%	-	1.70	%	0.51	%	-	0.76	%
Expected dividend yield	The expected dividend yield is based on management’s current expected dividend rate.	3.16	%	-	3.64	%	6.23	%	-	11.79	%
Expected term	Expected term used represents the period of time the options granted are expected to be outstanding.	10 years					10 years

No options were granted during the year ended December 31, 2022.