GAMCO INVESTORS, INC. (NYSE:GBL) Files An 8-K Other EventsItem 8.01
In connection with the spin-off of Associated Capital Group, Inc. (“AC”) on November 30, 2015, all GAMCO Investors, Inc. (“GAMCO”) teammates who held GAMCO restricted stock awards (“RSAs”), were granted an equal amount of AC RSAs. This resulted in GAMCO and AC teammates holding both GAMCO RSAs and AC RSAs.
On May 8, 2017, AC, with the approval of its Board of Directors, accelerated the vesting of all of AC’s 420,240 outstanding RSAs effective July 17, 2017. As a result of this decision by AC’s Board of Directors, GAMCO will incur non-cash charges of approximately $2.1 million, or $0.07 per diluted share, and approximately $0.5 million, or $0.02 per diluted share, (after management fee and tax benefit) in the second quarter ending June 30, 2017 and third quarter ending September 30, 2017, respectively. These amounts relate to the GAMCO teammates who currently hold AC RSAs. GAMCO’s financial results for calendar years 2018 through 2024, will benefit from the absence of this stock compensation expense.