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Equity-Based Compensation (Tables) | 6 Months Ended
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Jun. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Components of Share-Based Compensation | Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation under a risk-neutral premise, with the following assumptions:
|  | 2023 PSU Grants |  | 2022 PSU Grants |  | 2021 PSU Grants
Expected volatility of the Company's class A common stock (1) |  | 41.3% |  | 32.4% |  | 35.4%
Expected annual dividend yield (2) |  | 0.3% |  | —% |  | —%
Risk-free rate (per annum) (3) |  | 3.8% |  | 2.0% |  | 0.3%
__________ (1) Based upon the historical volatility of the Company's stock and those of a specified peer group. (2) Based upon the Company's expected annualized dividends. Expected dividend yield was zero for the March 2022 and 2021 PSU awards as common dividends were suspended beginning the second quarter of 2020 and reinstated in the third quarter 2022. (3) Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date. The following assumptions were applied in the Monte Carlo model under a risk-neutral premise:
|  | 2022 LTIP Grant |  | 2019 LTIP Grant (1)
Expected volatility of the Company's class A common stock (2) |  | 34.0% |  | 28.3%
Expected dividend yield (3) |  | 0.0% |  | 8.1%
Risk-free rate (per annum) (4) |  | 3.6% |  | 1.8%
__________ (1) Represents 2.5 million LTIP units granted to the Company's Chief Executive Officer, Marc Ganzi, in connection with the Company's acquisition of Digital Bridge Holdings, LLC in July 2019, with vesting based upon the Company's class A common stock price closing at or above $40 over any 90 consecutive trading days prior to the fifth anniversary of the grant date. (2) Based upon historical volatility of the Company's stock and those of a specified peer group. (3) Based upon the Company's most recently issued dividend prior to grant date and closing price of the Company's class A common stock on grant date. Expected dividend yield was zero for the June 2022 award as common dividends were suspended beginning the second quarter of 2020 and reinstated in the third quarter of 2022. (4) Based upon the continuously compounded zero-coupon US Treasury yield for the term coinciding with the measurement period of the award as of valuation date. Equity-based compensation cost pursuant to DBRG's Equity Incentive Plan is presented on the consolidated statement of operations, as follows.
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Compensation expense (including $0, $176, $0 and $213 expense related to dividend equivalent rights) |  | $ | 20,691 |  |  | $ | 8,168 |  |  | $ | 31,461 |  |  | $ | 17,147 |  |  |
Administrative expense |  | — |  |  | 34 |  |  | 228 |  |  | 122 |  |  |
|  | $ | 20,691 |  |  | $ | 8,202 |  |  | $ | 31,689 |  |  | $ | 17,269 |  |  |
Nonvested Shares Under Director Stock Plan and Equity Incentive Plan | Changes in unvested equity awards pursuant to DBRG's Equity Incentive Plan are summarized below.
|  |  |  |  |  |  |  |  |  |  |  |  |  | Weighted Average Grant Date Fair Value
|  | Restricted Stock |  | LTIP Units (1) |  | DSUs |  | RSUs (2) |  | PSUs (3) |  | Total |  | PSUs |  | All Other Awards
Unvested shares and units at December 31, 2022 |  | 1,706,674 |  |  | 2,625,000 |  |  | 20,058 |  |  | 2,397,391 |  |  | 1,889,587 |  |  | 8,638,710 |  |  | $ | 17.84 |  |  | $ | 10.84 |
Granted |  | 2,118,060 |  |  | — |  |  | 70,642 |  |  | — |  |  | 397,262 |  |  | 2,585,964 |  |  | 11.63 |  |  | 11.64 |
Vested |  | (929,809) |  |  | — |  |  | (26,656) |  |  | (1,198,696) |  |  | (635,926) |  |  | (2,791,087) |  |  | 26.92 |  |  | 14.17 |
Forfeited |  | (9,479) |  |  | — |  |  | — |  |  | — |  |  | (424,065) |  |  | (433,544) |  |  | 26.92 |  |  | 12.99 |
Unvested shares and units at June 30, 2023 |  | 2,885,446 |  |  | 2,625,000 |  |  | 64,044 |  |  | 1,198,695 |  |  | 1,226,858 |  |  | 8,000,043 |  |  | 7.98 |  |  | 10.04 |
__________ (1) Represents the number of LTIP units granted subject to vesting upon achievement of market condition. LTIP units that do not meet the market condition within the measurement period will be forfeited. (2) Represents the number of RSUs granted subject to vesting upon achievement of performance condition. RSUs that do not meet the performance condition at the end of the measurement period will be forfeited. (3) Number of PSUs granted does not reflect potential increases or decreases that could result from the final outcome of the total shareholder return measured at the end of the performance period. PSUs for which the total shareholder return was not met at the end of the performance period are forfeited.

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