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Share-Based Compensation and Employee Ownership Plans
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation and Employee Ownership Plans Share-Based Payments, Deferred Compensation and Employee Ownership Plans
The Company has issued share-based compensation under the 2010 and 2020 Equity and Incentive Plan (the "Equity Plans"). The Equity Plans permit the grant of options, restricted shares, restricted stock units, 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, both of which are eligible to accrue dividend equivalents, may be immediately vested or may generally vest over a two-to five-year period. Awards are subject to the risk of forfeiture. As of December 31, 2020, there were 2.4 million shares available for future issuance under the Equity Plans.
Under the Equity Plans, the Company awarded $50.3 million of deferred cash awards to its employees during the year ended December 31, 2020. These awards vest over a four-year period and accrue interest at 0.70% per year. As of December 31, 2020, the Company had unrecognized compensation expense related to the Equity Plans' deferred cash awards of $69.8 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 Plan, the Company recognized compensation expense of $48.1 million, $34.0 million, and $37.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. The income tax effect recognized for the Equity Plans was a benefit of $13.8 million, $8.8 million, and $9.7 million for the years ended December 31, 2020, 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 years ended December 31, 2020 and 2019:
Year Ended December 31, 2020Year Ended December 31, 2019
Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock UnitsWeighted-Average
Grant Date
Fair Value		Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock UnitsWeighted-Average
Grant Date
Fair Value
Beginning balance outstanding 5,364,486 $16.67 5,962,295 $15.73 
Granted2,709,979 17.40 2,435,058 16.58 
Vested(2,419,818)15.59 (2,291,032)15.63 
Canceled(87,348)14.80 (584,333)11.49 
Forfeited(117,108)15.62 (157,502)13.98 
Ending balance outstanding 5,450,191 $17.56 5,364,486 $16.67 

Included in the restricted share and restricted stock unit activity are performance-linked restricted stock units of 1,366,666 which were awarded in March 2016, April 2019 and July 2020. Of the awards granted, 379,319 have vested and 320,681 have
been canceled, as they did not meet the performance criteria, through December 31, 2020. Included in vested shares are 233,333 shares that had an attainable value of 420,000, due to reaching certain performance goals, and are to be delivered in March 2021. The remaining awards, included in the outstanding balance as of December 31, 2020, vest between December 2021 and December 2022 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 December 31, 2020, there was $70.8 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 2.05 years.
Restricted Shares and Restricted Stock Units Granted to Non-Employee Board Members
There were 90,645 restricted stock units awarded and 48,021 delivered to non-employee board members during the year ended December 31, 2020. As of December 31, 2020, there were 259,536 restricted stock units outstanding for non-employee board members. There were no restricted stock units awarded to non-employee board members during the year ended December 31, 2019, and 120,430 were delivered. As of December 31, 2019, there were 216,912 restricted stock units outstanding.
Share Based Payments
In certain circumstances, the Company grants carried interest in consolidated managing member/general partner subsidiaries to third parties through the grant of equity awards in exchange for professional, advisory and other services. The equity awards are recorded within additional paid in capital in the accompanying consolidated statements of financial condition and professional, advisory and other fees expense in the accompanying consolidated statements of operations based on the fair value of the award granted and expensed over the terms of the award. In addition, the equity awards provide the third parties profit points aligned to the allocated carried interest distributions. Upon vesting of the awards, the third parties' allocation of carried interest is determined by applying an equity ownership model. Accordingly, the Company accrues carried interest allocations based on the fair value of the underlying investments assuming hypothetical liquidation at book value upon vesting as nonredeemable non-controlling interest.