Incentive Plans (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense |
The following reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs and restricted stock awards) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2018 and 2017:
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Share-based incentive awards: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RSUs |
|
$ |
38,121 |
|
|
$ |
39,898 |
|
|
$ |
154,643 |
|
|
$ |
150,193 |
|
|
PRSUs |
|
|
3,107 |
|
|
|
9,896 |
|
|
|
31,125 |
|
|
|
38,095 |
|
|
Restricted Stock |
|
|
6,950 |
|
|
|
7,697 |
|
|
|
30,323 |
|
|
|
30,507 |
|
|
DSUs |
|
|
179 |
|
|
|
156 |
|
|
|
2,096 |
|
|
|
1,853 |
|
|
Total |
|
$ |
48,357 |
|
|
$ |
57,647 |
|
|
$ |
218,187 |
|
|
$ |
220,648 |
|
|
| Schedule of Issuance of RSUs and Charges to Retained Earnings |
During the nine month periods ended September 30, 2018 and 2017, issuances of RSUs pertaining to such dividend participation rights and respective charges to “retained earnings”, net of estimated forfeitures (with corresponding credits to “additional paid-in-capital”), consisted of the following:
|
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
Number of RSUs issued |
|
|
746,324 |
|
|
|
866,914 |
|
|
Charges to retained earnings, net of estimated forfeitures |
|
$ |
38,923 |
|
|
$ |
36,482 |
|
|
| Summary of LFI and Other Similar Deferred Compensation Arrangements |
The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the nine month periods ended September 30, 2018 and 2017:
|
|
|
Prepaid
Compensation
Asset |
|
|
Compensation
Liability |
|
|
Balance, January 1, 2018 |
|
$ |
60,355 |
|
|
$ |
182,301 |
|
|
Granted |
|
|
104,740 |
|
|
|
104,740 |
|
|
Settled |
|
|
- |
|
|
|
(85,335 |
) |
|
Forfeited |
|
|
(1,166 |
) |
|
|
(1,767 |
) |
|
Amortization |
|
|
(68,145 |
) |
|
|
- |
|
|
Change in fair value related to: |
|
|
|
|
|
|
|
|
|
Increase in fair value of underlying investments |
|
|
- |
|
|
|
1,712 |
|
|
Adjustment for estimated forfeitures |
|
|
- |
|
|
|
3,730 |
|
|
Other |
|
|
(1,489 |
) |
|
|
(1,403 |
) |
|
Balance, September 30, 2018 |
|
$ |
94,295 |
|
|
$ |
203,978 |
|
|
|
|
Prepaid
Compensation
Asset |
|
|
Compensation
Liability |
|
|
Balance, January 1, 2017 |
|
$ |
49,650 |
|
|
$ |
170,388 |
|
|
Granted |
|
|
77,580 |
|
|
|
77,580 |
|
|
Settled |
|
|
- |
|
|
|
(95,718 |
) |
|
Forfeited |
|
|
(866 |
) |
|
|
(1,647 |
) |
|
Amortization |
|
|
(52,702 |
) |
|
|
- |
|
|
Change in fair value related to: |
|
|
|
|
|
|
|
|
|
Increase in fair value of underlying investments |
|
|
- |
|
|
|
17,981 |
|
|
Adjustment for estimated forfeitures |
|
- |
|
|
|
5,333 |
|
|
Other |
|
|
1,515 |
|
|
|
1,833 |
|
|
Balance, September 30, 2017 |
|
$ |
75,177 |
|
|
$ |
175,750 |
|
The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2018 and 2017:
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Amortization, net of forfeitures |
|
$ |
19,145 |
|
|
$ |
15,961 |
|
|
$ |
71,274 |
|
|
$ |
57,254 |
|
|
Change in the fair value of underlying investments |
|
|
3,647 |
|
|
|
4,875 |
|
|
|
1,712 |
|
|
|
17,981 |
|
|
Total |
|
$ |
22,792 |
|
|
$ |
20,836 |
|
|
$ |
72,986 |
|
|
$ |
75,235 |
|
|
| Restricted Stock Units and Deferred Stock Units [Member] |
|
| Schedule of Activity Relating to Share-based Awards |
The following is a summary of activity relating to RSUs and DSUs during the nine month periods ended September 30, 2018 and 2017:
|
|
|
RSUs |
|
|
DSUs |
|
|
|
|
Units |
|
|
Weighted
Average
Grant Date
Fair Value |
|
|
Units |
|
|
Weighted
Average
Grant Date
Fair Value |
|
|
Balance, January 1, 2018 |
|
|
12,919,846 |
|
|
$ |
40.23 |
|
|
|
278,422 |
|
|
$ |
37.46 |
|
|
Granted (including 746,324 RSUs relating to dividend
participation) |
|
|
4,096,939 |
|
|
$ |
53.78 |
|
|
|
40,300 |
|
|
$ |
52.00 |
|
|
Forfeited |
|
|
(130,138 |
) |
|
$ |
45.11 |
|
|
|
- |
|
|
|
- |
|
|
Vested |
|
|
(5,603,901 |
) |
|
$ |
42.88 |
|
|
|
- |
|
|
|
- |
|
|
Balance, September 30, 2018 |
|
|
11,282,746 |
|
|
$ |
43.78 |
|
|
|
318,722 |
|
|
$ |
39.30 |
|
|
Balance, January 1, 2017 |
|
|
11,698,138 |
|
|
$ |
40.65 |
|
|
|
276,725 |
|
|
$ |
36.05 |
|
|
Granted (including 866,914 RSUs relating to dividend
participation) |
|
|
5,294,156 |
|
|
$ |
43.01 |
|
|
|
41,821 |
|
|
$ |
44.30 |
|
|
Forfeited |
|
|
(162,320 |
) |
|
$ |
39.97 |
|
|
|
- |
|
|
|
- |
|
|
Vested |
|
|
(3,977,477 |
) |
|
$ |
45.27 |
|
|
|
(43,465 |
) |
|
$ |
35.77 |
|
|
Balance, September 30, 2017 |
|
|
12,852,497 |
|
|
$ |
40.20 |
|
|
|
275,081 |
|
|
$ |
37.35 |
|
|
| Restricted Stock Awards Class A [Member] |
|
| Schedule of Activity Relating to Share-based Awards |
The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the nine month periods ended September 30, 2018 and 2017:
|
|
|
Restricted
Shares |
|
|
Weighted
Average
Grant Date
Fair Value |
|
|
Balance, January 1, 2018 |
|
|
1,938,160 |
|
|
$ |
40.54 |
|
|
Granted |
|
|
529,987 |
|
|
$ |
54.45 |
|
|
Forfeited |
|
|
(30,950 |
) |
|
$ |
46.31 |
|
|
Vested |
|
|
(869,312 |
) |
|
$ |
44.15 |
|
|
Balance, September 30, 2018 |
|
|
1,567,885 |
|
|
$ |
43.13 |
|
|
Balance, January 1, 2017 |
|
|
1,655,073 |
|
|
$ |
40.95 |
|
|
Granted |
|
|
841,355 |
|
|
$ |
42.58 |
|
|
Forfeited |
|
|
(65,086 |
) |
|
$ |
40.80 |
|
|
Vested |
|
|
(483,811 |
) |
|
$ |
45.42 |
|
|
Balance, September 30, 2017 |
|
|
1,947,531 |
|
|
$ |
40.54 |
|
|
| PRSUs [Member] |
|
| Schedule of Activity Relating to Share-based Awards |
The following is a summary of activity relating to PRSUs during the nine month periods ended September 30, 2018 and 2017:
|
|
|
PRSUs |
|
|
Weighted
Average
Grant Date
Fair Value |
|
|
Balance, January 1, 2018 |
|
|
1,591,693 |
|
|
$ |
42.46 |
|
|
Granted (a) |
|
|
399,869 |
|
|
$ |
56.80 |
|
|
Vested |
|
|
(799,402 |
) |
|
$ |
46.74 |
|
|
Balance, September 30, 2018 |
|
|
1,192,160 |
|
|
$ |
44.39 |
|
|
Balance, January 1, 2017 |
|
|
1,590,756 |
|
|
$ |
40.76 |
|
|
Granted (a) |
|
|
458,113 |
|
|
$ |
43.76 |
|
|
Vested |
|
|
(825,565 |
) |
|
$ |
42.27 |
|
|
Balance, September 30, 2017 |
|
|
1,223,304 |
|
|
$ |
40.86 |
|
|
|
(a) |
Represents PRSU awards granted during the relevant year at the target payout level. |
|