Stock-Based Awards

9 Months Ended

Sep. 30, 2021

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

18. Stock-Based Awards

On June 20, 2016, the Company’s stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards.

The Company grants equity awards to employees and directors which include restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and stock options. Certain awards described below are subject to acceleration under certain conditions.


Stock options:		Generally issued for terms of ten years and may vest after at least one year of service and have an exercise price equal to the Company’s stock price on the grant date. The Company estimates the fair value of stock options (when granted) using the Black-Scholes option pricing model.

RSAs/RSUs:		Awards are valued based on the Company’s stock price on grant date and generally vest ratably over three years.

PRSUs:		These awards cliff vest three years from the grant date and contain a market condition whereby the number of PRSUs ultimately vesting is tied to how the Company’s total shareholder return (“TSR”) compares to a peer group of other publicly traded asset managers over the three-year period. A Monte Carlo simulation is used to value these awards.

		The number of PRSUs vesting ranges from 0% to 200% of the target number of PRSUs granted, as follows:

		• If the relative TSR is below the 25 th percentile, then 0% of the target number of PRSUs granted will vest;

		• If the relative TSR is at the 25 th percentile, then 50% of the target number of PRSUs granted will vest; and

		• If the relative TSR is above the 25 th percentile, then linear scaling is applied such that the percent of the target number of PRSUs vesting is 100% at the 50 th percentile and capped at 200% of the target number of PRSUs granted for performance at the 85 th percentile (or 100 th percentile for grants made during 2019 and 2020).

		• If the Company’s TSR is negative, the target number of PRSUs vesting is capped at 100% regardless of the relative TSR percentile.

Stock-based

compensation

expense during the three months ended September 30, 2021 and 2020 was $2,397 and $2,844, respectively, and during the nine months ended September 30, 2021 and 2020 was $7,661 and $9,003, respectively.

A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows:


	September 30, 2021
	Unrecognized Stock- Based Compensation		Average Remaining Vesting Period (Years)

Employees and directors	$	11,362		1.48

A summary of stock-based compensation award activity during the three months ended September 30, 2021 is as follows:


	Stock Options		RSAs			RSUs		PRSUs

Balance at July 1, 2021		47,500		3,043,948			53,209		550,686
Granted		—		47,393			—		—
Exercised/vested		—		—			—		—
Forfeitures		—		(11,396	)		—		—

Balance at September 30, 2021		47,500		3,079,945			53,209		550,686