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Employee compensation plans | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Employee compensation plans | Employee compensation plans The Company maintains various employee compensation plans for the benefit of its employees. Two types of employee compensation are granted under share-based compensation and cash-based compensation plans. Share-based Compensation Plans Oppenheimer Holdings Inc. 2014 Incentive Plan On February 26, 2014, the Company adopted the Oppenheimer Holdings Inc. 2014 Incentive Plan (the "OIP"). Pursuant to the OIP, the Compensation Committee of the Board of Directors of the Company (the "Committee") is permitted to grant options to purchase Class A Stock ("stock options"), Class A Stock awards and restricted Class A Stock (collectively "restricted stock awards") to or for the benefit of employees and non-employee directors of the Company and its subsidiaries as part of their compensation. Stock o ptions are generally granted for a five-year term and generally vest at the rate of 25% of the amount granted on the second anniversary of the grant, 25% on the third anniversary of the grant, 25% on the fourth anniversary of the grant and 25% on the six months before expiration. Restricted stock awards are generally awarded for a three or five year term and fully vest at the end of the term. Restricted stock - The Company has granted restricted stock awards pursuant to the OIP. The following table summarizes the status of the Company's non-vested restricted Class A Stock awards under the OIP for the year ended December 31, 2023:
| Number of Class A Shares Subject to Restricted Stock Awards |  | Weighted Average Fair Value Per Share |  | Weighted Average Remaining Contractual Life
Nonvested at beginning of year | 1,690,006 |  |  | $ | 29.42 |  |  | 1.9 years
Granted | 293,222 |  |  | 45.66 |  |  | 2.6 years
Vested | (341,579) |  |  | 25.79 |  |  | — |
Forfeited | (52,235) |  |  | 37.98 |  |  | — |
Nonvested at end of year | 1,589,414 |  |  | $ | 32.92 |  |  | 1.6 years
As of December 31, 2023, all outstanding restricted Class A Stock awards were non-vested. The aggregate intrinsic value of restricted Class A Stock awards outstanding as of December 31, 2023 was $65.7 million. During the year ended December 31, 2023, the Company included $13.1 million ($11.5 million in 2022 and $10.5 million in 2021) of compensation expense in its consolidated income statements relating to restricted Class A Stock awards. As of December 31, 2023, there was $21.4 million of total unrecognized compensation cost related to unvested restricted Class A Stock awards. The cost is expected to be recognized over a weighted average period of 1.6 years. As of December 31, 2023, the number of shares of Class A Stock available under the share-based compensation plans, but not yet awarded, was 145,303. On May 8, 2023, holders of the Class B voting common stock of the Company voted to approve increasing the number of shares of Class A Stock available to the 2014 Plan by 1,250,000 shares of Class A Stock. On January 24, 2024, the Company registered these additional shares of Class A Stock to be available under the 2014 Plan. As of January 24, 2024, the number of shares of Class A Stock available under the share-based compensation plans, but not yet awarded, was 1,395,303. On January 25, 2024, the Company awarded a total of 311,140 restricted shares of Class A Stock to current employees pursuant to the OIP. Of these restricted shares, 184,790 shares will cliff vest in three years and 126,350 shares will cliff vest in five years. These awards will be expensed over the applicable three or five year vesting period. Stock options - The Company has granted stock options pursuant to the OIP. There were 2,447 and 5,233 options outstanding as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, the Company included $8,195 ($15,702 in 2022 and $21,669 in 2021) of compensation expense in its consolidated income statements relating to the expensing of stock options. On February 26, 2024 the OIP expired by its terms. Awards issued prior to the expiration of the OIP survive the termination of the OIP. Authorized but unissued shares under the OIP not subject to awards were cancelled. On March 1, 2024 the Board of Directors of the Company approved the Company’s 2024 Incentive Plan (“2024 Plan”) subject to approval of the 2024 Plan at the Annual Meeting of Stockholders on May 6, 2024. Oppenheimer Holdings Inc. Stock Appreciation Right Plan Under the Oppenheimer Holdings Inc. Stock Appreciation Right Plan, the Company awards stock appreciation rights ("OARs") to certain employees as part of their compensation package based on a formula reflecting gross production and length of service. These awards are granted once per year in January with respect to the prior year's production. The OARs vest five years from grant date and settle in cash at vesting. OARs - The Company has awarded OARs pursuant to the Oppenheimer Holdings Inc. Stock Appreciation Right Plan. The following table summarizes the status of the Company's outstanding OARs awards as of December 31, 2023:
Grant Date |  | Number of OARs Outstanding |  | Strike Price |  | Remaining Contractual Life |  | Fair Value as of December 31, 2023
January 11, 2019 |  | 473,956 |  |  | $ | 26.45 |  |  | 12 days |  | $ | 14.88 |
January 10, 2020 |  | 484,790 |  |  | 27.54 |  |  | 1 year |  | 14.98 |
January 11, 2021 |  | 583,389 |  |  | 32.16 |  |  | 2 years |  | 13.30 |
January 7, 2022 |  | 617,707 |  |  | 49.57 |  |  | 3 years |  | 7.52 |
January 6, 2023 |  | 514,670 |  |  | 45.33 |  |  | 4 years |  | 12.38 |
Total OARs Outstanding |  | 2,674,512 |  |  |  |  |  |  |
Total weighted average values |  |  |  | $ | 36.87 |  |  | 2.9 years |  | $ | 12.37 |
The fair value as of December 31, 2023 for each of the OARs was estimated using the Black-Scholes model with the following assumptions:
|  | Grant Date
|  | January 11, 2019 |  | January 10, 2020 |  | January 11, 2021 |  | January 7, 2022 |  | January 6, 2023
Expected term (1) |  | 12 days |  | 1 year |  | 2 years |  | 3 years |  | 4 years
Expected volatility factor (2) |  | 17.096 | % |  | 33.244 | % |  | 34.355 | % |  | 33.422 | % |  | 40.315 | %
Risk-free interest rate (3) |  | 1.741 | % |  | 4.750 | % |  | 4.244 | % |  | 4.008 | % |  | 3.927 | %
Quarterly dividends (4) |  | $ | 0.6 |  |  | $ | 0.6 |  |  | $ | 0.6 |  |  | $ | 0.6 |  |  | $ | 0.6 |
(1) The expected term was determined based on the remaining life of the actual awards. (2) The volatility factor was measured using the weighted average of historical daily price changes of the Company's Class A Stock over a historical period commensurate to the expected term of the awards. (3) The risk-free interest rate was based on periods equal to the expected term of the awards based on the U.S. Treasury yield curve in effect at December 31, 2023. (4) Quarterly dividends were used to compute the expected annual dividend yield. As of December 31, 2023, 2,674,512 of outstanding OARs were unvested. As of December 31, 2023, the aggregate intrinsic value of OARs outstanding was $19.1 million. In the year ended December 31, 2023, the Company included $3.9 million ($4.4 million in 2022 and $20.6 million in 2021) in compensation expense in its consolidated income statements relating to OARs awards. The liability related to the OARs was $20.6 million as of December 31, 2023. As of December 31, 2023, there was $12.6 million of total unrecognized compensation cost related to unvested OARs. The cost is expected to be recognized over a weighted average period of 2.9 years. On January 5, 2024, 488,700 OARs were awarded to Oppenheimer employees related to fiscal 2023 performance. These OARs will be expensed over 5 years (the vesting period). Cash-based Compensation Plans Defined Contribution Plan The Company, through its subsidiaries, maintains a defined contribution plan covering substantially all full-time U.S. employees. The Oppenheimer & Co. Inc. 401(k) Plan provides that Oppenheimer may make discretionary contributions. Eligible Oppenheimer employees could make voluntary contributions which could not exceed $22,500, $20,500 and $19,500 per annum in 2023, 2022 and 2021, respectively. The Company made contributions to the 401(k) Plan of $4.4 million, $4.3 million and $4.3 million in 2023, 2022 and 2021, respectively. Deferred Compensation Plans The Company maintains an Executive Deferred Compensation Plan ("EDCP") and a Deferred Incentive Plan ("DIP") in order to offer certain qualified high-performing financial advisors a bonus based upon a formula reflecting years of service, production, net commissions and a valuation of their clients' assets. The bonus amounts resulted in deferrals for fiscal 2023 of $10.1 million ($11.1 million in 2022 and $12.8 million in 2021). These deferrals normally vest after five years. The liability is being recognized over the vesting period. The EDCP also includes voluntary deferrals by senior executives that are not subject to vesting. The Company maintains a Company-owned life insurance policy, which is designed to hedge a portion of the EDCP obligation. The EDCP liability is being tracked against the value of a benchmark investment portfolio held for this purpose. Additionally, the Company maintains the Oppenheimer & Co. Inc. Investment Banking and Capital Markets Deferred Compensation Plan ("CMDP") for eligible employees in the Capital Markets business segment. As of December 31, 2023, the Company's liability with respect to the EDCP, DIP and CMDP described below totaled $69.7 million and is included in accrued compensation on the consolidated balance sheet as of December 31, 2023. On October 26, 2023 the Company terminated the DIP. All deferrals made prior to October 26, 2023 survive the termination of the DIP. The Company also maintains a deferred compensation plan on behalf of certain employees who were formerly employed by CIBC World Markets. The Company hedges this deferred compensation obligation with a portfolio of mutual fund investments. As of December 31, 2023, the Company's liability with respect to this plan totaled $19.8 million. An employee is eligible to participate in the CMDP if the employee (i) is an Investment Banking Division employee of Oppenheimer with a title of Associate or above whose previous year’s salary and bonus exceeded $200,000, or (ii) is a professional working in the Oppenheimer Capital Markets Division (but not the Investment Banking Division) who is designated by the Plan Administrator (in its sole discretion) as eligible to participate in the Plan. The CMDP has both mandatory and elective contributions. The amount of compensation subject to mandatory deferral (“Bonus Deferral Credit”) is based on a schedule maintained by the Plan Administrator from time to time. The Bonus Deferral Credit vests ratably over a period of three years and is distributed upon vesting. For the elective portion, a participant is eligible if his or her base salary and bonus exceed $500,000 and he or she may elect to defer up to 50% of the total of his or her base salary and bonus amounts (“Elective Deferral Credit”) for a 5-year or 10-year period. The Elective Deferral Credit is 100% vested at all times. The Company provides a Matching Credit of 10% of the Elective Deferral Credit which vests on last day of the Performance Year (as defined in the CMDP) attributable to the Matching Credit. The Elective Deferral Credit and the Matching Credit are distributed in lump sums in the year following the fifth or tenth anniversary of the last day of the Performance Year (as defined in the CMDP), depending on the participant’s election. For fiscal 2023, the Company’s deferral related to the CMDP totaled $9.9 million which is comprised of Bonus Deferral Credits. Eligibility for Elective Deferral Credits began in 2023 for elections made by December 31, 2021. The total amount expensed in 2023 for the Company's deferred compensation plans was $33.6 million ($5.3 million in 2022 and $18.4 million in 2021).

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