Earnings Per Share

12 Months Ended

Dec. 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 shares of Class A common stock outstanding for the period. As of December 31, 2020, there were 26,845,628 shares of Class A common stock outstanding. As of December 31, 2020, the Company has included 334,230 fully vested, unissued restricted stock units and restricted shares 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, and restricted stock units. 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 and the December 2022 Convertible Notes 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,
		2020		2019		2018
		(dollars and share data in thousands, except per share data)
Net income (loss)		$	207,064	55,870		$	79,879
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds		(9,299)		31,239		37,060
Net income (loss) attributable to Cowen Inc.		216,363		24,631		42,819
Preferred stock dividends		6,792		6,792		6,792
Net income (loss) attributable to Cowen Inc. common stockholders		$	209,571	$	17,839	$	36,027

Shares for basic and diluted calculations:
Weighted average shares used in basic computation		27,790		29,525		29,545


Contingently issuable common stock in connection with an acquisition (see Note 3)		85		26		—
Restricted stock		1,644		1,735		1,190
Weighted average shares used in diluted computation		29,519		31,286		30,735
Earnings (loss) per share:
Basic		$	7.54	$	0.60	$	1.22
Diluted		$	7.10	$	0.57	$	1.17