v3.26.1
Equity-Based and Other Deferred Compensation
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Equity-Based and Other Deferred Compensation
9.
EQUITY-BASED AND OTHER DEFERRED COMPENSATION

Overview

Further information regarding the Company’s equity-based compensation awards is described in Note 10. “Equity-Based and Other Deferred Compensation” in the “Notes to Consolidated Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The following table represents equity-based compensation expense and related income tax benefit for the three months ended March 31, 2026 and 2025:

 

 

Three Months Ended
March 31,

 

 

 

2026

 

 

2025

 

Equity-Based Compensation Expense

 

$

85,132

 

 

$

88,803

 

Income Tax Benefit

 

$

10,877

 

 

$

12,537

 

Restricted Stock Units

The following table summarizes activity related to unvested RSUs, including those that have fully achieved market conditions in prior periods and remain subject to service conditions, for the three months ended March 31, 2026:

 

 

Restricted Stock Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

 

 

 

Grant Date

 

 

 

Number of

 

 

Fair Value

 

 

 

Units

 

 

(in dollars)

 

Balance, December 31, 2025

 

 

6,283,555

 

 

$

105.37

 

Granted

 

 

1,462,338

 

 

 

162.08

 

Dividends Reinvested on RSUs

 

 

(39,647

)

 

 

68.40

 

Forfeited

 

 

(3,941

)

 

 

149.89

 

Vested

 

 

(2,285,894

)

 

 

81.32

 

Balance, March 31, 2026

 

 

5,416,411

 

 

$

131.06

 

As of March 31, 2026, there was $425.4 million of estimated unrecognized compensation expense related to unvested RSU awards. This cost is expected to be recognized over a weighted-average period of 1.9 years. The weighted-average grant date fair value with respect to RSUs granted for the three months ended March 31, 2025 was $174.85.

Partnership Units

The following table summarizes activity related to unvested Partnership Units, including those that have fully achieved market conditions in prior periods and remain subject to service conditions, for the three months ended March 31, 2026:

 

 

Partnership Units

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

Average

 

 

 

Number of

 

 

Grant Date

 

 

 

Partnership

 

 

Fair Value

 

 

 

Units

 

 

(in dollars)

 

Balance, December 31, 2025

 

 

1,032,935

 

 

$

68.85

 

Granted

 

 

56,618

 

 

 

150.84

 

Vested

 

 

(356,141

)

 

 

53.73

 

Balance, March 31, 2026

 

 

733,412

 

 

$

82.53

 

 

As of March 31, 2026, there was $27.5 million of estimated unrecognized compensation expense related to unvested Partnership Units. This cost is expected to be recognized over a weighted-average period of 1.3 years. The weighted-average grant date fair value with respect to Partnership Units granted for the three months ended March 31, 2025 was $162.60.

Units Expected to Vest

The following unvested units, after expected forfeitures, as of March 31, 2026, are expected to vest:

 

 

 

 

 

Weighted-
Average

 

 

 

 

 

 

Service Period

 

 

 

Units

 

 

in Years

 

Restricted Stock Units

 

 

5,075,946

 

 

 

1.9

 

Partnership Units

 

 

728,798

 

 

 

1.3

 

Total Equity-Based Awards

 

 

5,804,744

 

 

 

1.8

 

Deferred Cash Compensation

The Company has periodically issued deferred cash compensation in connection with annual incentive compensation as well as other hiring or retention related awards. These awards typically vest over a period of one to four years. Compensation expense related to deferred cash awards was $4.4 million and $11.2 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was $16.7 million of unrecognized compensation expense related to these awards. The weighted-average period over which this compensation cost is expected to be recognized is 1.0 year.