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Share-Based and Other Deferred Compensation | 9 Months Ended
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Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based and Other Deferred Compensation | Share-Based and Other Deferred Compensation Equity Grants During the nine months ended September 30, 2016, the Company granted employees 3,087 RSUs that are Service-based Awards. Service-based Awards granted during the nine months ended September 30, 2016 had grant date fair values of $44.30 to $51.98 per share. During the nine months ended September 30, 2016, 2,269 Service-based Awards vested and 129 Service-based Awards were forfeited. Compensation expense related to Service-based Awards was $29,505 and $86,783 for the three and nine months ended September 30, 2016, respectively, and $25,124 and $80,083 for the three and nine months ended September 30, 2015, respectively. During the second quarter of 2016, the Company's stockholders approved the Amended and Restated 2016 Evercore Partners Inc. Stock Incentive Plan. The amended plan, among other things, authorizes an additional 10,000 shares of the Company's Class A Shares. Deferred Cash Program The Company's deferred compensation program provides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to a notional investment portfolio and vests ratably over four years and requires payment upon vesting. During the nine months ended September 30, 2016, the Company granted $41,147 of deferred cash awards pursuant to the deferred compensation program. Compensation expense related to this deferred compensation program was $4,281 and $11,399 for the three and nine months ended September 30, 2016, respectively, and $272 and $1,154 for the three and nine months ended September 30, 2015, respectively. Acquisition-related LP Units Equities business - In conjunction with the acquisition of the operating businesses of International Strategy & Investment ("ISI") in 2014, the Company issued Evercore LP units and interests which have been treated as compensation, including 710 vested Class E LP Units and an allocation of the value, attributed to post-combination service, of 710 Class E LP Units that were unvested and vest ratably on October 31, 2015, 2016 and 2017 and become exchangeable once vested, subject to continued employment with the Company. The units will become exchangeable into Class A common shares of the Company subject to certain liquidated damages and continued employment provisions. Compensation expense related to Class E LP Units was $5,133 and $15,683 for the three and nine months ended September 30, 2016, respectively, and $6,193 and $16,155 for the three and nine months ended September 30, 2015, respectively. In October 2016, 224 Class E LP Units vested. The Company also issued 538 vested and 540 unvested Class G LP Interests, which vest ratably on February 15, 2016, 2017 and 2018, and 2,044 vested and 2,051 unvested Class H LP Interests, which will vest ratably on February 15, 2018, 2019 and 2020. The Company’s vested Class G and Class H LP Interests will become exchangeable into Class A common shares of the Company subject to the achievement of certain performance targets. The Company’s vested Class G LP Interests become exchangeable in February 2016, 2017 and 2018 if certain earnings before interest and taxes, excluding underwriting, ("Management Basis EBIT") margin thresholds within a range of 12% to 16%, are achieved for the calendar year preceding the date the interests become exchangeable. The Company’s vested Class H LP Interests will become exchangeable in February 2018, 2019 and 2020 if certain average Management Basis EBIT and Management Basis EBIT margin thresholds, within ranges of $8,000 to $48,000 and 7% to 17%, respectively, are achieved for the three calendar years preceding the date the interests become exchangeable. In the event of death, disability or termination of employment without cause, unvested Class G and H LP Interests will be canceled or may vest based on determination of expected performance, based on a decision by Management. In February 2016, 371 Class G LP Interests achieved their performance targets and were converted to the same number of Class E LP Units. Based on Evercore ISI’s results for 2015 and for the first nine months of 2016, the Company determined that the achievement of certain of the remaining performance thresholds for the remaining Class G and H LP Interests was probable at September 30, 2016. This determination assumes an average Management Basis EBIT margin of 15.9% and an average annual Management Basis EBIT of $37,960 being achieved over the remaining performance period for Evercore ISI which would result in 3,721 Class G and H LP Interests vesting and becoming exchangeable into Class E LP Units. For the nine months ended September 30, 2015, the Company had determined that the achievement of certain of the remaining performance thresholds for the Class G and H LP Interests was probable and assumed a Management Basis EBIT margin of 15.7% and annual Management Basis EBIT of $34,600 being achieved over the performance period for Evercore ISI. Accordingly, $8,629 and $50,379 of expense was recorded for the three and nine months ended September 30, 2016, respectively, and $15,657 and $48,970 of expense was recorded for the three and nine months ended September 30, 2015, respectively, for the Class G and H LP Interests. Assuming the maximum thresholds for the Class G and H LP Interests were considered probable of achievement at September 30, 2016, an additional $28,300 of expense would have been incurred in the third quarter ended September 30, 2016 and the remaining expense to be accrued over the future vesting period extending from October 1, 2016 to February 15, 2020 would be $126,325. In that circumstance, the total number of Class G and H LP Interests that would vest and become exchangeable to Class E LP Units would be 4,957. Conversely, the life to date actual accrued expense related to unvested Class G and H LP Interests as of September 30, 2016 was $91,899, which would be reversed if the actual performance falls below, or is deemed probable of falling below, the minimum thresholds prior to vesting. Other Acquisition Related Lexicon - Compensation expense related to The Lexicon Partnership LLP ("Lexicon") Acquisition-related Awards and deferred cash consideration was $1,237 and $301, respectively, for the nine months ended September 30, 2015. Long-term Incentive Plan The Company's Long-term Incentive Plan provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over a four-year performance period beginning January 1, 2013. These awards will be paid, in cash or Class A Shares, at the Company's discretion, in three equal installments on January 31, 2017, 2018 and 2019, to Senior Managing Directors employed by the Company at the time of payment. These awards are subject to retirement eligibility requirements. The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award. The compensation expense related to these awards was $6,117 and $13,595 for the three and nine months ended September 30, 2016, respectively, and $1,547 and $4,590 for the three and nine months ended September 30, 2015, respectively. Employee Loans Receivable Periodically, the Company provides new and existing employees with cash payments in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements ranging from one to five years. Generally, the terms of these awards include a requirement of either full or partial repayment of these awards based on the terms of their employment agreements with the Company. In circumstances where the employee meets the Company's minimum credit standards, the Company amortizes these awards to compensation expense over the relevant service period which is generally the period they are subject to forfeiture. Compensation expense related to these awards was $4,246 and $14,777 for the three and nine months ended September 30, 2016, respectively, and $3,483 and $12,434 for the three and nine months ended September 30, 2015, respectively. The remaining unamortized amount of these awards was $34,568 as of September 30, 2016. Separation Benefits The Company granted separation benefits to certain employees, resulting in expense included in Employee Compensation and Benefits of approximately $845 and $4,068 for the three and nine months ended September 30, 2016, respectively, and $1,124 and $4,920 for the three and nine months ended September 30, 2015, respectively. In conjunction with these arrangements, the Company distributed cash payments of $617 and $2,379 for the three and nine months ended September 30, 2016, respectively, and $674 and $2,205 for the three and nine months ended September 30, 2015, respectively. The Company also granted separation benefits to certain employees, resulting in expense included in Special Charges of approximately $1,863 for the nine months ended September 30, 2015. In conjunction with these arrangements, the Company distributed cash payments of $487 for the nine months ended September 30, 2015. See Note 4 for further information.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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