Share-Based Payments

On September 23, 2009, the Company’s board of directors approved the Apollo Commercial Real Estate Finance, Inc., 2009 Equity Incentive Plan (the “LTIP”). The LTIP provides for grants of restricted common stock, restricted stock units (“RSUs”) and other equity-based awards up to an aggregate of 7.5% of the issued and outstanding shares of the Company’s common stock (on a fully diluted basis). The LTIP is administered by the compensation committee of the Company’s board of directors (the “Compensation Committee”) and all grants under the LTIP must be approved by the Compensation Committee.

The Company recognized stock-based compensation expense of $3,488, $3,624 and $1,788 during 2013, 2012 and 2011, respectively, related to restricted stock and RSU vesting. The fair value of restricted stock that vested during 2013, 2012 and 2011 was $293, $717 and $663, respectively. The fair value of RSUs that vested during 2013, 2012 and 2011 was $2,854, $1,916 and $792, respectively.

The following table summarizes the grants, exchanges and forfeitures of restricted stock and RSUs during 2013, 2012 and 2011:

Type

Date

Restricted Stock

RSUs

Estimate Fair Value
on Grant Date

Initial Vesting

Final Vesting

Outstanding at January 1, 2011

151,828

118,959

Grant

April 2011

9,204

150

July 2011

April 2014

Grant

April 2011

—

5,000

July 2011

April 2014

Grant

August 2011

—

308,750

4,586

January 2012

January 2014

Forfeiture *

December 2011

—

(30,000

)

n/a

Forfeiture*

February 2012

—

(1,875

)

n/a

Grant

March 2012

—

20,000

310

March 2013

March 2015

Grant

April 2012

9,584

—

150

July 2012

April 2015

Grant

August 2012

1,496

—

July 2013

July 2015

Canceled upon delivery

October 2012

—

(112,084

)

n/a

Grant

February 2013

20,000

—

352

December 2013

December 2015

Grant

February 2013

—

180,000

3,166

December 2013

December 2015

Grant

April 2013

11,304

—

200

July 2013

April 2016

Grant

May 2013

—

15,000

264

December 2013

December 2015

Forfeiture *

June 2013

—

(5,000

)

n/a

Canceled upon delivery

July 2013

—

(5,000

)

n/a

Grant

September 2013

—

10,000

154

September 2013

Grant

November 2013

5,000

—

December 2013

October 2016

Outstanding at December 31, 2013

208,416

503,750


*	Represents RSUs forfeited by a former employee of the Manager in connection with such employee’s resignation from the Manager.


**	Represents restricted stock forfeited by a former director of the Company in connection with such director’s resignation from the Company’s board of directors.

Below is a summary of restricted stock and RSU vesting dates as of December 31, 2013.



Vesting Date	Shares Vesting	RSU Vesting	Total Awards
January 2014	2,920	93,335	96,255
March 2014	—	6,667	6,667
April 2014	2,925	417	3,342
July 2014	2,157	—	2,157
July 2014	500	—	500
October 2014	2,153	—	2,153
December 2014	6,668	63,332	70,000
January 2015	2,160	—	2,160
March 2015	—	6,667	6,667
April 2015	2,161	—	2,161
July 2015	1,361	—	1,361
July 2015	500	—	500
October 2015	1,361	—	1,361
December 2015	6,668	63,341	70,009
January 2016	1,360	—	1,360
April 2016	1,361	—	1,361
July 2016	417	—	417
October 2016	416	—	416
	35,088	233,759	268,847

At December 31, 2013, the Company had unrecognized compensation expense of approximately $562 and $2,351, respectively, related to the vesting of restricted stock awards and RSUs noted in the table above.

RSU Deliveries

During 2013 and 2012, respectively, the Company delivered 3,057 and 67,354 shares of common stock for 5,000 and 112,084 vested RSUs. The Company allows RSU participants to settle their tax liabilities with a reduction of their share delivery from the originally granted and vested RSUs. The amount, when agreed to by the participant, results in a cash payment to the Manager related to this tax liability and a corresponding adjustment to additional paid in capital on the consolidated statement of changes in stockholders equity. The adjustments were $31 and $779 in 2013 and 2012, respectively, and are included as reductions of capital increase related to the Company's equity incentive plan in the consolidated statement of changes in shareholders’ equity.