Share-Based and Deferred Compensation and Employee Ownership Plans

The Company issues share-based compensation under the 2006 Equity and Incentive Plan, the 2007 Equity and Incentive Plan (both established prior to the November 2009 transaction between Ramius Capital Group LLC and Cowen) and the 2010 Equity and Incentive Plan (collectively, the “Equity Plans”). The Equity Plans permit the grant of options, restricted shares, restricted stock units, stock appreciation rights ("SARs") and other equity-based awards to the Company's employees and directors. Stock options granted generally vest over two-to-five-year periods and expire seven years from the date of grant. Restricted shares and restricted share units issued may be immediately vested or may generally vest over a two-to-five-year period. SARs vest and expire after five years from grant date. Awards are subject to the risk of forfeiture. As of September 30, 2019, there were 0.2 million shares available for future issuance under the Equity Plans.

Under the 2010 Equity and Incentive Plan, the Company awarded $0.6 million and $42.7 million, respectively, of deferred cash awards to its employees during the three and nine months ended September 30, 2019. These awards vest over a four-year period and accrue interest at 0.70% per year. As of September 30, 2019, the Company had unrecognized compensation expense related to the 2010 Equity and Incentive Plan deferred cash awards of $67.6 million.

The Company measures compensation cost for share based awards according to the equity method. In accordance with the expense recognition provisions of those standards, the Company amortizes unearned compensation associated with share-based awards on a straight-line basis over the vesting period of the option or award, net of estimated forfeitures. In relation to awards under the Equity Plans, the Company recognized compensation expense of $10.0 million and $8.5 million for the three months ended September 30, 2019 and 2018, and $27.2 million and $27.6 million for the nine months ended September 30, 2019 and 2018, respectively. The income tax effect recognized for the Equity Plans was a benefit of $2.6 million and $2.4 million for the three months ended September 30, 2019 and 2018, and $6.8 million and $7.2 million for the nine months ended September 30, 2019 and 2018, respectively.

Restricted Stock Units Granted to Employees

Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the nine months ended September 30, 2019 and 2018:



	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
	Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units		Weighted-Average Grant Date Fair Value		Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units		Weighted-Average Grant Date Fair Value
Beginning balance outstanding	5,962,295		$	15.73	5,579,293		$	16.33
Granted	2,322,996		16.62		2,255,794		14.27
Vested	(1,545,850	)	16.26		(1,423,075	)	16.08
Canceled	(584,333	)	11.49		—		—
Forfeited	(156,528	)	13.97		(61,997	)	14.13
Ending balance outstanding	5,998,580		$	16.40	6,350,015		$	15.68

Included in the restricted share and restricted stock unit activity are performance linked restricted stock units of 481,438 which were awarded to employees of the Company in December 2013 and January 2014. An additional 700,000 performance linked restricted stock units were awarded in March 2016 and 333,333 in April of 2019. Of the awards granted, 130,438 have been forfeited and 584,333 have been canceled, as they did not meet the performance criteria, through September 30, 2019. The remaining awards, included in the outstanding balance as of September 30, 2019, vest between May 2019 and December 2021 and will be earned only to the extent that the Company attains specified market conditions relating to its volume-weighted average share price and total shareholder return in relation to certain benchmark indices and performance goals relating to aggregate net income and average return on shareholder equity. The actual number of RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the targeted award. Each RSU is equal to the one share of the Company’s Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals.

The fair value of restricted stock (excluding certain performance linked units which are valued using the Monte Carlo valuation model) is determined based on the number of shares granted and the quoted price of the Company's common stock on the date of grant.

As of September 30, 2019, there was $70.3 million of unrecognized compensation expense related to the Company's grant of nonvested restricted shares and restricted stock units to employees. Unrecognized compensation expense related to nonvested restricted shares and restricted stock units granted to employees is expected to be recognized over a weighted-average period of 2.23 years.

Restricted Shares and Restricted Stock Units Granted to Non-employee Board Members

There were no restricted stock units awarded during the three and nine months ended September 30, 2019 and 120,430 were delivered. As of September 30, 2019 there were 216,912 restricted stock units outstanding. There were 88,504 restricted stock units awarded during the three and nine months ended September 30, 2018. As of December 31, 2018 there were 253,772 restricted stock units outstanding.