We have 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.

As of March 31, 2025, the Incentive Plan provides for the issuance of up to 28.2 million shares. Equity-based compensation expense is reported within cost of sales and operating expenses.

Unvested equity-based awards are subject to forfeiture. The Company’s accounting policy is to record the impact of forfeitures when they occur.


	Three Months Ended March 31,				Remaining Expense To Be Recognized, If All Vesting Conditions Are Met	Weighted Average Remaining Contractual Term (in years)
	2025		2024
Stock Options	$	127	$	—			$	1,651	9.2
Performance shares	3,262		—				$	47,266	3.3
Restricted shares	1,500		510				18,788		2.4
Total	$	4,889	$	510			$	67,705

During the three months ended March 31, 2025, the Company did not issue any options to employees.

During the three months ended March 31, 2024, the Former Manager transferred 49,790 of its options to certain of the Manager’s employees. All of these options were issued prior to Internalization.

During the three months ended March 31, 2025, we issued performance shares to select officers and employees of the Company with a grant date fair value of $4.4 million, vesting over a 3 year performance period based on the achievement of relative total shareholder return (50%) and cumulative diluted EPS (50%).

During the three months ended March 31, 2025, we issued restricted shares to select officers and employees of the Company with a grant date fair value of $5.5 million, vesting over 3 years.

All awards are subject to continued employment, with compensation expense recognized ratably over the vesting periods. The fair values of the cumulative diluted EPS performance shares and restricted shares were based on the closing price of FTAI Aviation Ltd.’s ordinary shares on the respective grant dates, and the fair value of the total shareholder return performance shares was determined using the Monte Carlo simulation.