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Stock-based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
On May 3, 2023, the stockholders of the Company approved the Air Lease Corporation 2023 Equity Incentive Plan (the “2023 Plan”). Upon approval of the 2023 Plan, no new awards under the Air Lease Corporation 2014 Equity Incentive Plan could be granted. As of December 31, 2023, the number of shares of Class A Common Stock available for new award grants under the 2023 Plan is approximately 4,142,948. The Company has issued restricted stock units (“RSUs”) with four different vesting criteria: those RSUs that vest based on the attainment of book-value goals, those RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals, time based RSUs that vest ratably over a time period of three years and RSUs that cliff vest at the end of a one or two year period.

The Company recorded $34.6 million, $15.6 million, and $26.5 million of stock-based compensation expense for the years ended December 31, 2023, 2022, and 2021, respectively. For the year ended December 31, 2022, the Company reduced the underlying vesting estimates of certain book value RSUs as the performance criteria were no longer considered probable of being achieved.

Restricted Stock Units

Compensation cost for RSUs is measured at the grant date based on fair value and recognized over the vesting period. The fair value of time based and book value RSUs is determined based on the closing market price of the Company’s Class A common stock on the date of grant, while the fair value of RSUs that vest based on the attainment of TSR goals is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period.

During the year ended December 31, 2023, the Company granted 704,565 RSUs of which 121,608 are TSR RSUs and 243,206 are book value RSUs. The following table summarizes the activities for the Company’s unvested RSUs for the year ended December 31, 2023:
Unvested Restricted Stock Units
Number of SharesWeighted‑
Average
Grant‑Date
Fair Value
Unvested at December 31, 20221,514,875 $45.90 
Granted704,565 $44.73 
Vested(229,187)$44.19 
Forfeited/canceled(382,678)$42.52 
Unvested at December 31, 20231,607,575 $46.44 
Expected to vest after December 31, 2023
1,807,511 $45.70 

At December 31, 2023, the outstanding RSUs are expected to vest as follows: 2024—592,268; 2025—597,904; and 2026—617,338.

As of December 31, 2023 there was $34.7 million of unrecognized compensation expense related to unvested stock-based payments granted to employees. Total unrecognized compensation expense will be recognized over a weighted-average remaining period of 1.67 years.