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Compensation (Tables)
3 Months Ended
Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Compensation Expense

The Company incurred compensation expense related to Class A common stock, LPUs and RSUs as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Issuance of common stock and exchangeability expenses

 

$

23,034

 

 

$

3,536

 

Allocations of net income1

 

 

1,279

 

 

 

4,546

 

LPU amortization

 

 

16,309

 

 

 

3,045

 

RSU amortization

 

 

1,582

 

 

 

1,014

 

Equity-based compensation and allocations of net income to limited

   partnership units and FPUs

 

$

42,204

 

 

$

12,141

 

 

1

Certain LPUs generally receive quarterly allocations of net income and are generally contingent upon services being provided by the unit holders, including the Preferred Distribution.

Compensation expense related to the issuance of BGC or Newmark Class A common stock and grants of exchangeability on BGC Holdings and Newmark Holdings LPUs to BGC employees is as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Issuance of common stock and exchangeability expense

 

$

23,034

 

 

$

3,536

 

Compensation expense related to the amortization of LPUs held by BGC employees is as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Stated vesting schedule

 

$

16,277

 

 

$

3,506

 

Post-termination payout

 

 

32

 

 

 

(461

)

LPU amortization

 

$

16,309

 

 

$

3,045

 

Compensation expense related to RSUs held by BGC employees is as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

RSU amortization

 

$

1,582

 

 

$

1,014

 

Activity Associated with Limited Partnership Units Awarded to BGC Employees

A summary of the activity associated with LPUs awarded to BGC employees is as follows (in thousands):

 

 

 

BGC

LPUs

 

 

Newmark

LPUs2

 

Balance at December 31, 2019

 

 

102,407

 

 

 

14,607

 

Granted

 

 

12,661

 

 

 

 

Redeemed/exchanged units

 

 

(2,489

)

 

 

(31

)

Forfeited units

 

 

(2

)

 

 

 

Balance at March 31, 2020

 

 

112,577

 

 

 

14,576

 

Summary of the BGC Holdings and Newmark Holdings LPUs held by BGC Employees

The LPUs table above includes both regular and Preferred Units. The Preferred Units are not entitled to participate in partnership distributions other than with respect to the Preferred Distribution (see Note 2—“Limited Partnership Interests in BGC Holdings and Newmark Holdings” for further information on Preferred Units). A summary of the BGC Holdings and Newmark Holdings LPUs held by BGC employees is as follows (in thousands):

 

 

 

BGC

LPUs

 

 

Newmark

LPUs

 

Regular Units

 

 

78,054

 

 

 

10,405

 

Preferred Units

 

 

34,523

 

 

 

4,171

 

Balance at March 31, 2020

 

 

112,577

 

 

 

14,576

 

Activity Associated with Limited Partnership Units Awarded to BGC Employees

A summary of the LPUs redeemed in connection with the issuance of BGC Class A common stock or Newmark Class A common stock (at the current exchange ratio) or granted exchangeability for BGC Class A common stock or Newmark Class A common stock (at the current Exchange Ratio) held by BGC employees is as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

BGC Holdings LPUs

 

 

4,001

 

 

 

521

 

Newmark Holdings LPUs

 

 

192

 

 

 

179

 

Total

 

 

4,193

 

 

 

700

 

Summary of Outstanding LPUs Held by BGC Employees with Stated Vesting

A summary of the outstanding LPUs held by BGC employees with a stated vesting schedule that do not receive quarterly allocations of net income is as follows (in thousands):

 

 

 

March 31, 2020

 

 

December 31, 2019

 

BGC Holdings LPUs

 

 

33,348

 

 

 

30,699

 

Newmark Holdings LPUs

 

 

481

 

 

 

1,171

 

Aggregate estimated grant date fair value – BGC and Newmark Holdings LPUs

 

$

179,570

 

 

$

138,324

 

Activity Associated with Restricted Stock Units

A summary of the activity associated with RSUs held by BGC employees and directors is as follows (RSUs and dollars in thousands):

 

 

 

RSUs

 

 

Weighted-

Average

Grant

Date Fair

Value

 

 

Fair Value

Amount

 

 

Weighted-

Average

Remaining

Contractual

Term (Years)

 

Balance at December 31, 2019

 

 

4,478

 

 

$

5.25

 

 

$

23,516

 

 

 

2.50

 

Granted

 

 

228

 

 

 

4.32

 

 

 

986

 

 

 

 

 

Delivered units

 

 

(1,117

)

 

 

5.68

 

 

 

(6,345

)

 

 

 

 

Forfeited units

 

 

(94

)

 

 

4.71

 

 

 

(443

)

 

 

 

 

Balance at March 31, 2020

 

 

3,495

 

 

$

5.07

 

 

$

17,714

 

 

 

2.40