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Stock-Based Awards
 6 Months Ended
Jun. 30, 2023
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Awards
17. Stock-Based Awards
On
 July 15, 2022, the Company’s stockholders approved the 2022 Equity Plan under which the Company may issue up to 16,000,000 shares of common stock (less one share for every share granted under the 2016 Equity Plan since June 30, 2022 and inclusive of shares available under the 2016 Equity Plan as of June 30, 2022) 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, on an annual basis, 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;
 
 
●
 
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; and
 
 
●
 
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 was $
3,970
and $
8,506
, respectively during the three and six months ended June 30, 2023 and $
2,432
and $
5,368
, respectively, during the comparable periods in 2022.
 
A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows:
 
  
June 30, 2023
 
 
 
 
  
Unrecognized Stock-

Based

Compensation
 
 
Weighted-Average

Remaining

Vesting Period
(Years)
 
 
 
Employees and directors
  
$  
 
 
27,110 
 
 
 
   
  
1.87 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A summary of stock-based compensation award activity (shares) during the three months ended June 30, 2023 is as follows:
 
                              
                              
                              
 
  
RSA
 
  
RSU
 
  
PRSU
 
Balance at April 1, 2023
   
 
5,154,289
 
  
 
188,748
 
  
 
1,136,315
 
  Granted
   
 
78,410
 
  
 
78,410
 
     
—
 
  Vested
   
 
(76,434
) 
  
 
(19,762
) 
    
—
 
  Forfeited
   
 
(57,137
) 
  
 
(19,762
) 
  
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2023
   
 
 5,099,128
 
  
 
227,634
 
    
 1,136,315