Annual report pursuant to Section 13 and 15(d)

Equity-Based Compensation

v3.23.3
Equity-Based Compensation
 12 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation Equity-Based Compensation
Restricted Stock
The Company measures and recognizes stock-based compensation expense, net of forfeitures, over the requisite vesting periods for all stock-based payment awards made, and recognizes forfeitures as they occur. Stock-based compensation is included in general and administrative expenses in the Consolidated Statements of Comprehensive Income. A summary of the changes in the Company’s restricted stock is as follows (in thousands, except share data):
For the Fiscal Year Ended September 30,
2021 2022 2023
Unvested shares, beginning balance 292,534 595,561 715,724
Shares awarded 510,733 256,167 210,412
Shares vested (207,706) (134,481) (76,963)
Shares forfeited — (1,523) (24,893)
Unvested shares, ending balance 595,561 715,724 824,280
Aggregate grant date fair value of awards $13,546 $8,356 $5,514
Compensation expense recorded upon vesting of awards 3,549 6,966 8,717
Unrecognized compensation expense at fiscal year-end 11,650 15,152 9,766
The restricted shares granted under the Equity Incentive Plan will vest, as applicable, as follows:
Fiscal Year Number of Shares
2024 391,975 
2025 351,892 
2026 67,913 
2027 12,500 
Total 824,280 
Performance Stock Units
Performance stock units (“PSUs”) provide for the issuance of shares of Class A common stock upon vesting, which occurs at the end of the performance period based on achievement of certain Company performance metrics established by the Compensation Committee of the Company’s Board of Directors. The final number of shares of common stock issuable upon vesting of PSUs can range from 0% to 150% of the number of PSUs initially granted, depending on the level of achievement, as determined by the Compensation Committee of the Company’s Board of Directors. The achievement of performance goals is modified by the total shareholder return ranking of the Company against the Russell 2000 Index over the performance period and can increase or decrease the achieved award by up to 15%. The Company recognizes expense, net of estimated forfeitures, for PSUs based on the forecasted achievement of Company performance metrics, multiplied by the fair value of the total number of shares of common stock that the Company anticipates will be issued based on such achievement.
During the fiscal year ended September 30, 2023, the Company awarded PSUs representing a target of 92,423 shares and forecasted vesting of 65,024 shares of Class A common stock to certain members of Company management under the Equity Incentive Plan. The grants are classified as equity awards. The aggregate grant date fair value of these restricted awards was $2.2 million. During the fiscal year ended September 30, 2022, the Company awarded PSUs representing a target of 131,341 shares and forecasted vesting of 98,505 shares of Class A common stock to certain members of Company management under the Equity Incentive Plan. During the fiscal years ended September 30, 2023 and 2022, the Company recorded compensation expense in connection with PSUs in the amount of $2.0 million and $1.0 million, respectively, which is reflected as general and administrative expenses in the Company’s Consolidated Statements of Comprehensive Income. At September 30, 2023, the Company forecasted 163,529 restricted shares of Class A common stock as unvested and approximately $2.1 million of unrecognized compensation expense related to these awards.