Share-Based Payments

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

On September 23, 2009, our board of directors approved the Apollo Commercial Real Estate Finance, Inc. 2009 Equity Incentive Plan ("2009 LTIP") and on April 16, 2019, our board of directors approved the Amended and Restated Apollo Commercial Real Estate Finance, Inc. 2019 Equity Incentive Plan ("2019 LTIP," and together with the 2009 LTIP, the "LTIPs"), which amended and restated the 2009 LTIP. Following the approval of the 2019 LTIP by our stockholders at our 2019 annual meeting of stockholders on June 12, 2019, no additional awards have been or will be granted under the 2009 LTIP and all outstanding awards granted under the 2009 LTIP remain in effect in accordance with the terms in the 2009 LTIP.

The 2019 LTIP provides for grants of restricted common stock, restricted stock units ("RSUs") and other equity-based awards up to an aggregate of 7,000,000 shares of our common stock. The LTIPs are administered by the compensation committee of our board of directors (the "Compensation Committee") and all grants under the LTIPs must be approved by the Compensation Committee.

We recognized stock-based compensation expense of $4.4 million and $13.1 million during the three and nine months ended September 30, 2023. We recognized stock-based compensation expense of of $4.5 million and $13.7 million during the three and nine months ended September 30, 2022 respectively, related to restricted stock and RSU vesting.

The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during the nine months ended September 30, 2023:


	Type	Restricted Stock	RSUs	Grant Date Fair Value ($ in millions)








Outstanding at December 31, 2022		56,102	2,865,154
	Granted	75,754	—	$	0.7
	Vested	(52,768)	(30,641)	N/A
	Forfeiture	—	(17,328)	N/A
Outstanding at September 30, 2023		79,088	2,817,185

Below is a summary of restricted stock and RSU vesting dates as of September 30, 2023:


Vesting Year	Restricted Stock	RSUs	Total Awards


2023	—	1,358,418	1,358,418
2024	79,088	948,636	1,027,724
2025	—	510,131	510,131
Total	79,088	2,817,185	2,896,273

At September 30, 2023, we had unrecognized compensation expense of approximately $0.4 million and $21.4 million related to the vesting of restricted stock awards and RSUs, respectively, noted in the table above. The unrecognized compensation expense related to the vesting of restricted awards and RSUs are expected to be recognized over a weighted average period of 1.3 years.

RSU Deliveries

During the nine months ended September 30, 2023 and 2022 we delivered 681,384 and 652,501 shares of common stock for 1,255,184 and 1,145,091 vested RSUs, respectively. We allow 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 our condensed consolidated statement of changes in stockholders' equity. The adjustment was $6.8 million and $7.0 million for the

nine months ended September 30, 2023 and 2022, respectively. The adjustment is a reduction of capital related to our equity incentive plan and is presented net of increases of capital related to our equity incentive plan in our condensed consolidated statement of changes in stockholders' equity.