Employee Incentive Plans

9 Months Ended

Sep. 30, 2022

Postemployment Benefits [Abstract]

Employee Incentive Plans

Employee Incentive Plans

The Company’s equity incentive plans provide for granting awards, including RSUs, PBRSUs, cash awards and stock options to employees, officers and directors.

Stock-based Compensation

Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
RSUs and PBRSUs	$	16,737	$	16,691	$	50,164	$	49,130
Stock options	6		118		46		582
Total stock-based compensation expense	$	16,743	$	16,809	$	50,210	$	49,712

The Company capitalized $2.2 million and $5.9 million of stock-based compensation expense associated with developing software for internal use during the third quarter and first nine months of 2022, respectively. The Company capitalized $1.2 million and $3.3 million of stock-based compensation expense associated with developing software for internal use during the third quarter and first nine months of 2021, respectively.

Restricted Stock Units

The following table summarizes the activities for the Company’s RSUs:

	Number of Units	Weighted- Average Grant Date Fair Value
Unvested at December 31, 2021	9,703,751	$	12.44
Granted	5,216,789	$	14.26
Vested	(3,773,222)	$	12.59
Forfeited/expired	(1,351,990)	$	14.09
Unvested at September 30, 2022	9,795,328	$	13.09

During the first nine months of 2022, the Company granted 5,216,789 RSUs with an aggregate fair value of $74.4 million.

As of September 30, 2022, there was $114.5 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the next 1.9 years.

Performance-based Restricted Stock Units

PBRSUs are restricted stock unit awards that are earned and eligible for vesting (if applicable) based upon the achievement of certain pre-established performance metrics over a specific performance period. The Company’s outstanding PBRSU awards have a multi-year market-based performance metric with no additional time-based vesting for any earned shares. For PBRSU awards with market-based metrics, the compensation expense of the award is fixed at the time of grant (incorporating the probability of achieving the market-based metrics) and expensed over the performance period.

The following table summarizes the activities for the Company’s PBRSUs:

	Number of Units	Weighted- Average Grant Date Fair Value
Unvested at December 31, 2021	1,771,869	$	9.72
Granted	743,074	$	8.83
Vested	(506,696)	$	5.48
Unvested at September 30, 2022	2,008,247	$	10.47

During the first nine months of 2022, the Company granted 743,074 PBRSUs with an aggregate fair value of $6.6 million.

As of September 30, 2022, there was $9.6 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over the next 1.2 years.