Earnings Per Share

3 Months Ended

Mar. 31, 2020

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 March 31, 2020, there were 27,628,117 shares of Class A common stock outstanding. As of March 31, 2020, the Company has included 216,912 fully vested, unissued restricted stock units in its calculation of basic earnings per share. As of December 31, 2019, there were 28,610,357 shares of Class A common stock outstanding. As of December 31, 2019, the Company has included 216,912 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 unvested restricted shares, restricted stock units, and SARs. 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, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized. As of March 31, 2020, all outstanding unvested restricted shares, performance-linked unvested restricted stock units and contingently issued common stock were not included in the computation of diluted net income (loss) per share of common stock for the three months ended March 31, 2020 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:


	Three Months Ended March 31,
	2020		2019
	(dollars in thousands, except share and per share data)
Net income (loss)	$	(72,111)	10,295
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	(62,188)		512
Net income (loss) attributable to Cowen Inc.	(9,923)		9,783
Preferred stock dividends	1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders	$	(11,621)	$	8,085

Shares for basic and diluted calculations:
Weighted average shares used in basic computation	28,598		29,750



Restricted stock	—		1,875
Weighted average shares used in diluted computation	28,598		31,625
Earnings (loss) per share:
Basic	$	(0.41)	$	0.27
Diluted	$	(0.41)	$	0.26