Employee Benefit Plans, Prepaid and Long-Term Incentives |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Retirement Benefits [Abstract] | |
| Employee Benefit Plans, Prepaid and Long-Term Incentives |
12. Employee Benefit Plans, Prepaid and Long-Term Incentives Defined Contribution Plan The Company offers a defined contribution retirement benefit plan, the Ryan Specialty Group Employee Savings Plan (the “Plan”), to all eligible employees, based on a minimum number of service hours in a year. Under the Plan, eligible employees may contribute a percentage of their compensation, subject to certain limitations. Further, the Plan authorizes the Company to make a discretionary matching contribution, which has historically equaled % of each eligible employee’s contribution. The Company recognized expense related to discretionary matching contributions in the amount of $ 3.6million
and $ 2.5million
in the three months ended June 30, 2021 and June 30, 2020, respectively, and $ 7.1million
and $ 4.8million
in the six months ended June 30, 2021 and 2020, respectively. Starting in 2021, the Company changed the timing of discretionary matching contributions to being made throughout the year as opposed to making the contribution after the end of each year. RSG accrues for Company contributions in Current Accrued compensation within the Consolidated Statements of Financial Position. Due to the change in timing of the discretionary matching contributions, there were no Company contributions accrued for as of June 30, 2021. As of December 31, 2020, RSG accrued for $ 10.4million
of Company contributions which were paid in the first quarter of 2021.
Long-term Incentive Compensation Agreements RSG has entered into certain long-term incentive agreements whereby, at the end of a service period, employees are awarded cash, according to specified formulas following a period, typically associated with an acquisition. RSG recognizes expense within Compensation and benefits in the Consolidated Statements of Income over the service period of these awards based on the estimated expected payout. RSG recognized compensation expense of $0.5
million and $1.0 million related to these awards for the three and six months ended June 30, 2021, respectively. RSG recognized compensation expense of $0.5 million and $1.0 million related to these awards for the three and six months ended June 30, 2020, respectively. The aggregate amount of maximum obligation payable was $ 6.9 million and $11.9 million as of June 30, 2021 and December 31, 2020, respectively. ARL Long-Term Incentive Plans ARL had established various long-term incentive plans (“LTIPs”) throughout its history to incentivize certain executives, producers and key employees. ARL additionally established sales bonuses, implemented by the management of ARL, as compensation for past services performed in connection with executing the sale. Following the acquisition by RSG, the LTIP awards vest based on the achievement of various service conditions and are cash-settled. Cash settlement, including all cash payments due on close, will be made by RSG. The total value of the sales bonuses and LTIP awards at the acquisition date was $24.3
million and $303.7 million , respectively. The portion allocated to the pre-combination service period and accounted for as consideration transferred was $257.6 million inclusive of sales bonuses. Of the expense related to post-combination services after forfeitures, $17.5 million was expensed in the six months ended June 30, 2021 with the remaining expense of $39.9 million to be recognized over a 0.98 year weighted-average period. The liability for these awards is recognized in Current and Non-current Accrued compensation in the Consolidated Statements of Financial Position and the expense is recognized in Compensation and Benefits in the Consolidated Statements of Income ratably over the remaining service period of the participants while employed at RSG. As of June 30, 2021, the Current and Non-current portions of the ARL LTIP accrual were $97.5 million and $73.6 million , respectively. |