Apollo Commercial Real Estate Finance, Inc. Stock Compensation Disclosure
On June 17, 2024, our board of directors adopted the Apollo Commercial Real Estate Finance, Inc. 2024 Equity Incentive Plan ("2024 LTIP"). Following the approval of the 2024 LTIP by our stockholders at our 2024 annual meeting of stockholders on June 7, 2024, no additional awards have been or will be granted under the Apollo Commercial Real Estate Finance, Inc. 2019 Equity Incentive Plan ("2019 LTIP," and together with the 2024 LTIP, the "LTIPs" or "Equity Incentive Plans") and all outstanding awards granted under the 2019 LTIP remain in effect in accordance with the terms in the 2019 LTIP.
The 2024 LTIP provides for grants of restricted common stock, restricted stock units ("RSUs") and other equity-based awards up to an aggregate of 7,500,000 shares of our common stock. The LTIPs are administered by the compensation committee of our board of directors (the "Compensation Committee") and all grants under the LTIPs must be approved by the Compensation Committee.
We recognized stock-based compensation expense related to restricted stock and RSU vesting of $13.6 million, $16.5 million, and $17.4 million during the years ended December 31, 2025, 2024 and 2023, respectively.
The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during the years ended years ended December 31, 2025, 2024 and 2023:
Type |
|
Restricted Stock |
|
|
RSUs |
|
|
Grant Date Fair Value ($ in millions) |
|
|||
Outstanding at December 31, 2022 |
|
|
56,102 |
|
|
|
2,865,154 |
|
|
|
|
|
Granted |
|
|
75,754 |
|
|
|
1,082,564 |
|
|
$ |
13.8 |
|
Vested |
|
|
(52,768 |
) |
|
|
(1,389,059 |
) |
|
N/A |
|
|
Forfeiture |
|
|
— |
|
|
|
(20,327 |
) |
|
N/A |
|
|
Outstanding at December 31, 2023 |
|
|
79,088 |
|
|
|
2,538,332 |
|
|
|
|
|
Granted |
|
|
63,980 |
|
|
|
1,048,407 |
|
|
$ |
10.1 |
|
Vested |
|
|
(79,088 |
) |
|
|
(1,291,059 |
) |
|
N/A |
|
|
Forfeiture |
|
|
— |
|
|
|
(52,421 |
) |
|
N/A |
|
|
Outstanding at December 31, 2024 |
|
|
63,980 |
|
|
|
2,243,259 |
|
|
|
|
|
Granted |
|
|
71,134 |
|
|
|
1,241,110 |
|
|
$ |
13.2 |
|
Vested |
|
|
(63,980 |
) |
|
|
(1,185,080 |
) |
|
N/A |
|
|
Forfeiture |
|
|
— |
|
|
|
(18,566 |
) |
|
N/A |
|
|
Outstanding at December 31, 2025 |
|
|
71,134 |
|
|
|
2,280,723 |
|
|
|
|
|
Below is a summary of restricted stock and RSU vesting dates as of December 31, 2025:
Vesting Year |
|
Restricted Stock |
|
|
RSUs |
|
|
Total Awards |
|
|||
2026 |
|
|
71,134 |
|
|
|
1,107,507 |
|
|
|
1,178,641 |
|
2027 |
|
|
— |
|
|
|
759,504 |
|
|
|
759,504 |
|
2028 |
|
|
— |
|
|
|
413,712 |
|
|
|
413,712 |
|
Total |
|
|
71,134 |
|
|
|
2,280,723 |
|
|
|
2,351,857 |
|
As of December 31, 2025, we had unrecognized compensation expense of approximately $0.2 million and $22.9 million related to the vesting of restricted stock awards and RSUs, respectively, presented in the table above.
The unrecognized compensation expense related to the vesting of restricted stock awards and RSUs are expected to be recognized over a weighted-average period of 1.7 years.
RSU Deliveries
During the years ended December 31, 2025, 2024 and 2023, we delivered 698,061, 765,456, and 686,856 shares of common stock for 1,246,704, 1,405,134, and 1,264,352 vested RSUs, respectively. We allow RSU participants to settle their tax liabilities with a reduction of their share delivery from the originally granted and vested RSUs. The amount, when agreed to by the participant, results in a cash payment to the Manager related to this tax liability and a corresponding adjustment to additional paid in capital on our consolidated statement of changes in stockholders' equity. The adjustment was $5.0 million, $7.5 million, and $6.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. The adjustment is a reduction of capital related to our equity incentive plan and is presented net of increases of capital related to our equity incentive plan in our consolidated statement of changes in stockholders' equity.
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.