Earnings Per Share

12 Months Ended

Dec. 31, 2015

The Company calculates its basic and diluted earnings per share in accordance with US GAAP. Basic earnings per share is calculated by dividing net income attributable to the Company's common stockholders by the weighted average number of common shares outstanding for the period. As of December 31, 2015, there were 105,604,658 shares outstanding. The Company has included 497,570 fully vested, unissued restricted stock units in its calculation of basic earnings per share.

Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the warrants (see Note 5(a)), unexercised stock options, unvested restricted shares, restricted stock units, and SAR's. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, and options and warrants are assumed to have been exercised, on the grant date. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the sum of (a) the amount of compensation cost attributed to future services and not yet recognized and (b) the amount of tax benefit that would be credited to additional paid-in capital assuming vesting and delivery of the shares. The tax benefit is the amount resulting from a tax deduction for compensation in excess of compensation expense recognized for financial statement reporting purposes. All outstanding warrants were not included in the computation of diluted net income (loss) per common share for the years ended December 31, 2015, 2014 and 2013, respectively, as their inclusion would have been anti-dilutive. The Company can elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. The Company's intent is to settle in cash and, based on current and projected liquidity needs, the Company has the ability to do so.

The computation of earnings per share is as follows:



	Year Ended December 31,
	2015		2014		2013
	(dollars in thousands, except per share data)
Net income (loss)	$	58,975	$	182,780	$	17,840
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds	15,246		15,564		13,193
Net income (loss) attributable to Cowen Group, Inc.	43,729		167,216		4,647
Preferred stock dividends	4,075		—		—
Net income (loss) attributable to Cowen Group, Inc. common stockholders	$	39,654	$	167,216	4,647

Shares for basic and diluted calculations:
Weighted average shares used in basic computation	110,090		114,926		116,703
Stock options	13		—		—
Performance based restricted stock	263		—		—
Stock appreciation rights	140		60		306
Restricted stock	5,668		4,500		4,108
Weighted average shares used in diluted computation	116,174		119,486		121,117
Earnings (loss) per share:
Basic	$	0.36	$	1.45	$	0.04
Diluted	$	0.34	$	1.40	$	0.04