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 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, 2016, 2015, and 2014, we incurred $38.0 million, $32.2 million, and $17.8 million, respectively, of management fees payable to our Manager. In addition, during the years ended December 31, 2016, 2015, and 2014, we incurred $18.0 million, $10.7 million, and $1.7 million, respectively, of incentive fees payable to our Manager.

As of December 31, 2016 and 2015, we had accrued management and incentive fees payable to our Manager of $12.8 million and $14.4 million, respectively.

General and Administrative Expenses

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


	Year Ended December 31,
	2016		2015		2014
Professional services	$	3,311	$	3,156	$	2,324
Operating and other costs		2,147		2,709		1,980
GE transaction costs		—		9,623		—

Subtotal		5,458		15,488		4,304
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan – CTOPI⁽¹⁾		1,568		5,370	$	12,898
Management incentive awards plan – CT Legacy Partners⁽²⁾		1,094		2,177		1,374
Restricted class A common stock earned		19,052		12,966		7,988
Director stock-based compensation		375		375		375

Subtotal		22,089		20,888		22,635

Total BXMT expenses		27,547		36,376		26,939
Expenses of consolidated subsidiaries		169		333		860

Total general and administrative expenses	$	27,716	$	36,709	$	27,799

(1)

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

(2)

Represents the amounts recorded 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). During the years ended December 31, 2016, 2015, and 2014, we recognized $1.1 million, $2.2 million, and $1.4 million, respectively, of expenses under the CT Legacy Partners incentive plan.