Equity-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

13. Equity-Based Compensation

In May 2012, Carlyle Group Management L.L.C., the general partner of the Partnership, adopted the Equity Incentive Plan. The Equity Incentive Plan, which was amended on January 1, 2020 in connection with the Conversion to reflect shares of the Company’s common stock, is a source of equity-based awards permitting the Company to grant to Carlyle employees, directors and consultants non-qualified options, share appreciation rights, common shares, restricted stock units and other awards based on the Company’s common shares. The total number of the Company’s common shares which were initially available for grant under the Equity Incentive Plan was 30,450,000. The Equity Incentive Plan contains a provision which automatically increases the number of the Company’s common shares available for grant based on a pre-determined formula; this increase occurs annually on January 1. As of January 1, 2020, pursuant to the formula, the total number of the Company’s common shares available for grant under the Equity Incentive Plan was 34,715,889.

A summary of the status of the Company’s non-vested equity-based awards as of September 30, 2020 and a summary of changes for the nine months ended September 30, 2020, are presented below:




Unvested Shares	Restricted Stock Units	Weighted- Average Grant Date Fair Value		Unvested Common Shares (1)	Weighted- Average Grant Date Fair Value
Balance, December 31, 2019	14,622,159	$	17.09	788,290	$	20.30
Granted	3,422,872	$	29.39	299,401	$	33.40
Vested	6,861,984	$	17.38	339,347	$	20.63
Forfeited	2,320,048	$	19.10	—	$	—
Balance, September 30, 2020	8,862,999	$	19.83	748,344	$	25.39

(1) Includes common shares issued in connection with the Company’s strategic investment in NGP.

The Company recorded compensation expense for restricted stock units of $18.7 million and $36.5 million for the three months ended September 30, 2020 and 2019, respectively, with $4.5 million and $3.2 million of corresponding deferred tax benefits, respectively. The Company recorded compensation expense for restricted stock units of $78.3 million and $107.6 million for the nine months ended September 30, 2020 and 2019, respectively, with $19.5 million and $9.9 million of corresponding deferred tax benefits, respectively. As of September 30, 2020, the total unrecognized equity-based compensation expense related to unvested restricted stock units is $139.4 million, which is expected to be recognized over a weighted-average term of 2.0 years.