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Compensation Plans (Notes)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Compensation Plans Compensation Plans
Share-Based Payment Transactions
The Company maintains the shareholder-approved Diamond Hill Investment Group, Inc. 2022 Equity and Cash Incentive Plan (“2022 Plan”), which authorizes the issuance of 300,000 common shares of DHIL in various forms of equity awards. As of December 31, 2024, there were 152,759 common shares available for grants under the 2022 Plan. Previously, the Company issued equity awards under the Diamond Hill Investment Group, Inc. 2014 Equity and Cash Incentive Plan (“2014 Plan”). There are no longer any DHIL common shares available for issuance under the 2014 Plan, although certain grants previously made under the 2014 Plan remain issued and outstanding.

Restricted share grants represent DHIL common shares issued and outstanding upon grant that remain subject to restrictions until specified vesting conditions are satisfied. The Company issues to all new Company employees upon hire restricted shares that cliff vest after five years. After the end of each year, the Company also issues to certain key employees restricted shares that vest ratably on an annual basis over three years.

Restricted shares are valued based upon the fair market value of the common shares on the applicable grant date. The restricted shares are recorded as deferred compensation in the equity section of the balance sheet on the grant date and then recognized as compensation expense on a straight-line basis over the vesting period of the respective grant. The Company’s policy is to adjust compensation expense for forfeitures as they occur.

Compensation and related costs, excluding deferred compensation expense (benefit) includes expenses related to restricted shares of $11.8 million, $11.6 million, and $10.5 million, for the years ended December 31, 2024, 2023, and 2022, respectively.
The following table represents a roll-forward of outstanding restricted shares and related activity for 2024:
SharesWeighted-Average
Grant Date Price
per Share
Outstanding Restricted Shares as of December 31, 2023190,172 $164.69 
Grants issued87,344 154.27 
Grants vested(96,925)161.90 
Grants forfeited(7,471)169.93 
Outstanding Restricted Shares as of December 31, 2024173,120 $160.77 
The weighted-average grant date price per share of restricted shares issued during the years ended December 31, 2023 and 2022 was $186.85 and $176.46, respectively. The total fair value of restricted shares vested, as of their respective vesting dates, during the years ended December 31, 2024, 2023, and 2022 was $15.3 million, $13.8 million, and $9.1 million, respectively.
Total deferred equity compensation related to unvested restricted shares was $15.8 million as of December 31, 2024. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows:
20252026202720282029ThereafterTotal
$8,223,033 $4,979,504 $1,661,651 $657,845 $311,624 $— $15,833,657 
Employee Stock Purchase Plan
Under the ESPP, eligible employees may purchase DHIL common shares at 85% of the fair market value on the last day of each offering period. Each offering period is approximately three months, which coincides with the Company’s fiscal quarters. During the year ended December 31, 2024, ESPP participants purchased 2,501 DHIL common shares for $0.3 million and the Company recorded $0.1 million of share-based payment expense related to these purchases. During the year ended December 31, 2023, ESPP participants purchased 2,904 DHIL common shares for $0.4 million and the Company recorded $0.1 million of share-based payment expense related to these purchases.
As of December 31, 2024, 86,925 DHIL common shares were reserved for future issuance through the ESPP.
Share Grant Transactions
The following table represents DHIL common shares issued as part of the Company’s incentive compensation program during the years ended December 31, 2024, 2023, and 2022:
Shares IssuedGrant Date Value
December 31, 2024— — 
December 31, 2023— — 
December 31, 20222,743 $487,870 
401(k) Plan
The Company sponsors a 401(k) plan in which all Company employees are eligible to participate. Company employees may contribute a portion of their compensation subject to certain limits based on federal tax laws. The Company matches employee contributions equal to 250.0% of the first 6.0% of an employee’s compensation contributed to the plan. The Company may settle the 401(k) plan matching contributions in cash or common shares of the Company. After June 1, 2023, the Company made all matching contributions in cash. Employees vest ratably in the matching contributions over a five year period. The following table summarizes the Company’s expenses attributable to the 401(k) plan during the years ended December 31, 2024, 2023 and 2022:
Shares IssuedShare ContributionsCash ContributionsTotal Company Contributions
December 31, 2024— — $3,074,509 $3,074,509 
December 31, 202399 $16,344 3,067,630 3,083,974 
December 31, 2022211 $37,313 $2,910,156 $2,947,469 
Deferred Compensation Plans
Under the Deferred Compensation Plans, participants may elect to voluntarily defer, for a minimum of five years (subject to an earlier distribution in the case of the participant’s death or disability or a change in control of DHIL), certain incentive compensation that the Company may contribute into the Deferred Compensation Plans. Participants are responsible for designating investment options for the assets they contribute, and the distribution paid to each participant reflects any gains or losses on the assets realized in connection with the Deferred Compensation Plans. Assets held in the Deferred Compensation Plans are included in the Company’s investment portfolio, and the associated obligation to participants is included in deferred compensation liability. Deferred compensation liability was $39.1 million and $36.1 million as of December 31, 2024 and 2023, respectively.