Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per ShareBasic 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 September 30, 2020, there were 26,569,335 shares of Class A common stock outstanding. As of September 30, 2020, the Company has included 259,536 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.

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(dollars and share data in thousands, except per share data)
Net income (loss)	$	29,516	$	6,583	$	104,353	26,596
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	9,232		2,770		(19,843)		7,188
Net income (loss) attributable to Cowen Inc.	20,284		3,813		124,196		19,408
Preferred stock dividends	1,698		1,698		5,094		5,094
Net income (loss) attributable to Cowen Inc. common stockholders	$	18,586	$	2,115	$	119,102	$	14,314

Shares for basic and diluted calculations:
Weighted average shares used in basic computation	27,663		29,529		28,078		29,687


Contingently issuable common stock in connection with an acquisition (see Note 3)	22		—		22		—
Restricted stock	2,285		1,735		1,546		1,694
Weighted average shares used in diluted computation	29,970		31,264		29,646		31,381
Earnings (loss) per share:
Basic	$	0.67	$	0.07	$	4.24	$	0.48
Diluted	$	0.62	$	0.07	$	4.02	$	0.46