Common Stock

12 Months Ended

Dec. 31, 2020

The Class A common stockholder has the entire voting rights of Federated Hermes; however, without the consent of the majority of the holders of Class B common stock, the Class A common stockholder cannot alter Federated Hermes' structure, dispose of all or substantially all of its assets, amend its Articles of Incorporation or Bylaws to adversely affect the Class B common stockholders, or liquidate or dissolve Federated Hermes. With respect to dividends, distributions and liquidation rights, the Class A common stock and Class B common stock have equal preferences and rights.

(a) Dividends

Cash dividends of $207.8 million, $109.1 million and $106.9 million were paid in 2020, 2019 and 2018, respectively, to holders of Federated Hermes common stock. Of the amount paid in 2020, $99.3 million represented a $1.00 per share special dividend paid in the fourth quarter. All dividends were considered ordinary dividends for tax purposes.

(b) Treasury Stock

In October 2016, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 4 million shares of Class B common stock. This program was fulfilled in March 2020. In March 2020, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 500 thousand shares of Class B common stock. This program was fulfilled in May 2020. In April 2020, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 3.5 million shares of Class B common stock. No other program existed as of December 31, 2020. The program authorizes executive management to determine the timing and the amount of shares for each purchase. The repurchased stock is to be held in treasury for employee

share-based compensation plans, potential acquisitions and other corporate activities, unless Federated Hermes' board of directors subsequently determines to retire the repurchased stock and restore the shares to authorized but unissued status (rather than holding the shares in treasury). During the year ended December 31, 2020, Federated Hermes repurchased 2.9 million shares of its Class B common stock for $67.9 million ($1.1 million of which was accrued in Other Current Liabilities as of December 31, 2020), most of which were repurchased in the open market. At December 31, 2020, 1.7 million shares remained available to be repurchased under this buyback program.Redeemable Noncontrolling Interest in Subsidiaries

The following table presents the changes in Redeemable Noncontrolling Interest in Subsidiaries:


(in thousands)	Consolidated Investment Companies		HFML		Total
Balance at January 1, 2018	$	30,163	$	0	$	30,163
Net Income (Loss)	(1,095)		3,097		2,002
Other Comprehensive Income (Loss), net of tax	0		(6,009)		(6,009)
Subscriptions—Redeemable Noncontrolling Interest Holders	2,801		0		2,801
Consolidation/(Deconsolidation)	(1,751)		0		(1,751)
Stock Award Activity	0		4,239		4,239
Distributions to Noncontrolling Interest in Subsidiaries	(18,492)		0		(18,492)
Business Acquisition	0		169,560		169,560

Balance at December 31, 2018	$	11,626	$	170,887	$	182,513
Net Income (Loss)	2,016		2,770		4,786
Other Comprehensive Income (Loss), net of tax	0		6,907		6,907
Subscriptions—Redeemable Noncontrolling Interest Holders	9,356		0		9,356
Consolidation/(Deconsolidation)	454		0		454
Stock Award Activity	0		7,888		7,888
Distributions to Noncontrolling Interest in Subsidiaries	(3,580)		0		(3,580)
Business Acquisition	0		(386)		(386)

Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	0		4,148		4,148
Balance at December 31, 2019	$	19,872	$	192,214	$	212,086
Net Income (Loss)	3,626		6,032		9,658
Other Comprehensive Income (Loss), net of tax	0		6,593		6,593
Subscriptions—Redeemable Noncontrolling Interest Holders	20,985		0		20,985
Consolidation/(Deconsolidation)	(4,019)		595		(3,424)
Stock Award Activity	0		8,786		8,786
Distributions to Noncontrolling Interest in Subsidiaries	(16,218)		0		(16,218)

Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	0		(1,479)		(1,479)
Balance at December 31, 2020	$	24,246	$	212,741	$	236,987

During 2020, the HFML Redeemable Noncontrolling Interest in Subsidiaries carrying value was adjusted by $1.5 million to the current redemption value, assuming the HFML noncontrolling interest was redeemable at the balance sheet date. The noncontrolling interest was adjusted through a corresponding adjustment to retained earnings.