11. OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses.

Management and Incentive Fees

Pursuant to our management agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our outstanding equity balance, as defined in the management agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in our management agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period (or the period since the date of the first offering of our class A common stock following December 19, 2012, whichever is shorter) is greater than zero. Core Earnings, as defined in our management agreement, is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items (ii) the net income (loss) related to our legacy portfolio and (iii) incentive management fees.

During the years ended December 31, 2015, 2014, and 2013, we incurred $32.2 million, $17.8 million, and $5.9 million of management fees payable to our Manager, respectively. In addition, during the years ended December 31, 2015 and 2014, we incurred $10.7 million and $1.7 million of incentive fees payable to our Manager, respectively. We did not incur any incentive fees payable to our Manager for the year ended December 31, 2013.

As of December 31, 2015 we had accrued management and incentive fees payable to our Manager of $14.4 million, compared to $6.3 million as of December 31, 2014.

General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):


	Year Ended December 31,
	2015		2014		2013
Professional services	$	3,156	$	2,324	$	1,889
Operating and other costs		2,709		1,980		1,762
GE transaction costs		9,623		—		—

Subtotal		15,488		4,304		3,651
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan—CTOPI⁽¹⁾		5,370		12,898		—
Management incentive awards plan—CT Legacy Partners⁽²⁾		2,177		1,374		5,089
Restricted class A common stock earned		12,966		7,988		1,064
Director stock-based compensation		375		375		263

Subtotal		20,888		22,635		6,416

Total BXMT expenses		36,376		26,939		10,067
Expenses of consolidated subsidiaries		333		860		1,438

Total general and administrative expenses	$	36,709	$	27,799	$	11,505

(1)

Represents the portion of CTOPI promote revenue accrued under compensation awards. See Note 4 for further discussion.

(2)

Represents the accrual of amounts payable under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan.

CT Legacy Partners Management Incentive Awards Plan

In conjunction with our March 2011 restructuring, we created an employee pool for up to 6.75% of the distributions paid to the common equity holders of CT Legacy Partners (subject to certain caps and priority distributions). Approximately 50% of the pool is 75% vested as of December 31, 2015, with the remainder contingent on continued employment with an affiliate of our Manager and our receipt of distributions from CT Legacy Partners. Of the remaining 50% of the pool, 27% is fully vested as a result of an acceleration event, and 23% vest only upon our receipt of distributions from CT Legacy Partners. We accrue a liability for the amounts due under these grants based on the value of CT Legacy Partners and the periodic vesting of the awards granted. Accrued payables for these awards were $1.3 million and $2.8 million as of December 31, 2015 and 2014, respectively.