XML 59 R49.htm IDEA: XBRL DOCUMENT v3.23.3
Compensation (Tables)
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Compensation Expense
The Company incurred compensation expense related to Class A common stock, LPUs (prior to the Corporate Conversion) and RSUs held by BGC employees as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Issuance of common stock and grants of exchangeability$242 $32,469 $154,146 $83,064 
Allocations of net income and dividend equivalents¹1,137 3,492 4,154 11,916 
LPU amortization— 18,961 40,878 53,585 
RSU, RSU Tax Account, and restricted stock amortization67,889 2,808 78,107 13,174 
Equity-based compensation and allocations of net income
to limited partnership units and FPUs
$69,268 $57,730 $277,285 $161,739 
____________________________
1Prior to the Corporate Conversion, certain LPUs generally received quarterly allocations of net income, including the Preferred Distribution, and were generally contingent upon services being provided by the unit holders. Subsequent to the Corporate Conversion, this includes dividend equivalents on participating securities, the Preferred Return on certain RSU Tax Accounts, and quarterly allocations of net income, including the Preferred distribution to LPUs held by BGC employees in Newmark Holdings.
Compensation expense related to the issuance of BGC or Newmark Class A common stock and grants of exchangeability on BGC Holdings (prior to the Corporate Conversion) and Newmark Holdings LPUs held by BGC employees is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Issuance of common stock and grants of exchangeability$242 $32,469 $154,146 $83,064 
Compensation expense related to the amortization of LPUs held by BGC employees is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Stated vesting schedule$— $18,843 $40,848 $53,421 
Post-termination payout— 118 30 164 
LPU amortization$— $18,961 $40,878 $53,585 
Compensation expense related to RSUs held by BGC employees is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
RSU amortization
$36,568 $2,808 $46,786 $13,174 
Activity Associated with Limited Partnership Units Held by BGC Employees
A summary of the activity associated with LPUs held by BGC employees is as follows (in thousands):
BGC
LPUs		Newmark
LPUs
Balance at December 31, 2022110,348 9,351 
Granted9,688 2 
Redeemed/exchanged units(119,803)(448)
Forfeited units(233)— 
Balance at September 30, 2023— 8,905 
Summary of the BGC Holdings and Newmark Holdings LPUs held by BGC Employees
A summary of the BGC Holdings and Newmark Holdings LPUs held by BGC employees as of September 30, 2023, is as follows (in thousands):
BGC
LPUs		Newmark
LPUs
Regular Units— 6,831 
Preferred Units— 2,074 
Balance at September 30, 2023— 8,905 
Activity Associated with Limited Partnership Units Awarded to BGC Employees
A summary of the LPUs redeemed in connection with the issuance of BGC Class A common stock or Newmark Class A common stock (at the then-current Exchange Ratio) or granted exchangeability for BGC Class A common stock or Newmark Class A common stock (at the then-current Exchange Ratio) held by BGC is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
BGC Holdings LPUs— 8,066 25,684 18,732 
Newmark Holdings LPUs53 142 230 489 
Total53 8,208 25,915 19,221 
Summary of Outstanding LPUs Held by BGC Employees with Stated Vesting
A summary of the outstanding LPUs held by BGC employees with a stated vesting schedule that do not receive quarterly allocations of net income is as follows (in thousands):
September 30, 2023December 31, 2022
BGC Holdings LPUs— 47,222 
Newmark Holdings LPUs— 98 
Aggregate estimated grant date fair value – BGC and Newmark Holdings LPUs$— $194,951 
Activity Associated with Restricted Stock Units
A summary of the activity associated with RSUs held by BGC employees and directors is as follows (RSUs and dollars in thousands):
RSUsWeighted-
Average
Grant
Date Fair
Value		Fair Value
Amount		Weighted-
Average
Remaining
Contractual
Term (Years)
Balance at December 31, 202212,046 $4.11 $49,486 2.42
Granted60,881 4.04 243,885 
Delivered(10,422)4.13 (43,011)
Forfeited(275)4.15 (1,144)
Balance at September 30, 202362,230 $4.00 $249,216 6.37
Restricted Stock
Weighted-
Average
Grant
Date Fair
Value		Fair Value
Amount		Weighted-
Average
Remaining
Contractual
Term (Years)
Balance at December 31, 2022— $— $— — 
Granted38,610 4.37 168,716 
Delivered(6,241)5.22 (32,566)
Forfeited— — — 
Balance at September 30, 202332,369 $4.21 $136,150 2.29