☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-4064930 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Units of Limited Partnership Interest | None | None |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Table of Contents | ||
Item 1.
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Item 1A.
|
Risk Factors
|
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Item 1B.
|
Unresolved Staff Comments
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Item 2.
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Properties
|
||||||||||
Item 3.
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Legal Proceedings
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Item 4.
|
Mine Safety Disclosures
|
||||||||||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
||||||||||
Item 11.
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Executive Compensation
|
||||||||||
Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
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Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
||||||||||
Item 14.
|
Principal Accounting Fees and Services
|
||||||||||
2021 Annual Report |
i
|
Glossary of Certain Defined Terms | ||
AB |
AllianceBernstein L.P. (Delaware limited partnership formerly known as Alliance Capital Management L.P., “Alliance Capital”), the operating partnership, and its subsidiaries and, where appropriate, its predecessors, AB Holding and ACMC, Inc. and their respective subsidiaries.
|
||||
AB Holding | AllianceBernstein Holding L.P. (Delaware limited partnership). | ||||
AB Holding Partnership Agreement | the Amended and Restated Agreement of Limited Partnership of AB Holding, dated as of October 29, 1999 and as amended February 24, 2006. | ||||
AB Holding Units | units representing assignments of beneficial ownership of limited partnership interest in AB Holding. | ||||
AB Partnership Agreement | the Amended and Restated Agreement of Limited Partnership of AB, dated as of October 29, 1999 and as amended February 24, 2006. | ||||
AB Units | units of limited partnership interest in AB. | ||||
AUM | AB's Assets Under Management. | ||||
AXA |
AXA S.A. (société anonyme organized under the laws of France) is the holding company for the AXA Group, a worldwide leader in financial protection.
|
||||
Bernstein Transaction | AB's acquisition of the business and assets of SCB Inc., formerly known as Sanford C. Bernstein Inc., and the related assumption of the liabilities of that business, completed on October 2, 2000. | ||||
Equitable America | Equitable Financial Insurance Company of America (f/k/a MONY Life Insurance Company of America, an Arizona corporation), a subsidiary of Equitable Holdings. |
Equitable Financial | Equitable Financial Life Insurance Company (New York stock life insurance company), a subsidiary of Equitable Holdings. | ||||
Equitable Holdings or EQH | Equitable Holdings, Inc. (Delaware corporation) and its subsidiaries other than AB and its subsidiaries. | ||||
Exchange Act | the Securities Exchange Act of 1934, as amended. | ||||
ERISA | the Employee Retirement Income Security Act of 1974, as amended. | ||||
GAAP | U.S. Generally Accepted Accounting Principles. | ||||
General Partner | AllianceBernstein Corporation (Delaware corporation), the general partner of AB and AB Holding and a subsidiary of Equitable Holdings, and, where appropriate, ACMC, LLC, its predecessor. | ||||
Investment Advisers Act | the Investment Advisers Act of 1940, as amended. | ||||
Investment Company Act | the Investment Company Act of 1940, as amended. | ||||
NYSE | the New York Stock Exchange, Inc. | ||||
Partnerships | AB and AB Holding together. | ||||
SEC | the United States Securities and Exchange Commission. | ||||
Securities Act | the Securities Act of 1933, as amended. |
ii
|
AllianceBernstein |
Part I | ||
Assets Under
Management (AUM)
($ billions)
|
Net Revenues
($ billions)
|
||||
|
|
2021 Annual Report |
1
|
2
|
AllianceBernstein |
AUM by Client Domicile
($ in billions)
|
AUM by Investment Service
($ in billions)
|
||||
|
|
2021 Annual Report |
3
|
Distribution Channels
Institutions
We offer to our institutional clients, which include private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and EQH and its subsidiaries, separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles (“Institutional Services”).
We manage the assets of our institutional clients pursuant to written investment management agreements or other arrangements, which generally are terminable at any time or upon relatively short notice by either party. In general, our written investment management agreements may not be assigned without the client's consent. For information about our institutional investment advisory and services fees, including performance-based fees, see “Risk Factors” in Item 1A and “Net Revenues – Investment Advisory and Services Fees” in Item 7.
EQH and its subsidiaries constitute our largest institutional client. EQH and its subsidiaries combined AUM accounted for approximately 25%, 29% and 28% of our institutional AUM as of December 31, 2021, 2020 and 2019, respectively, and approximately 18%, 18% and 17% of our institutional revenues for 2021, 2020 and 2019, respectively. No single institutional client other than EQH and its respective subsidiaries accounted for more than approximately 2% of our net revenues for the year ended December 31, 2021.
|
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As of December 31, 2021, EQH and its subsidiaries combined AUM accounted for:
|
|||||||||||||||||
Approximately
25%
of our institutional AUM.
|
|||||||||||||||||
Approximately
18%
of our institutional revenues.
|
|||||||||||||||||
EQH and Subsidiaries as a % of our Institutional AUM | EQH and Subsidiaries as a % of our Institutional Revenues | ||||
|
|
4
|
AllianceBernstein |
|
||
Institutional Services Assets Under Management
(by Investment Service)
|
||
|
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 73,726 | $ | 60,067 | $ | 44,628 | 22.7 | % | 34.6 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
28,995 | 27,873 | 25,300 | 4.0 | 10.2 | ||||||||||||||||||||||||
Total Equity | 102,721 | 87,940 | 69,928 | 16.8 | 25.8 | ||||||||||||||||||||||||
U.S. | 47,409 | 41,241 | 35,210 | 15.0 | 17.1 | ||||||||||||||||||||||||
Global & Non-US | 55,312 | 46,699 | 34,718 | 18.4 | 34.5 | ||||||||||||||||||||||||
Total Equity | 102,721 | 87,940 | 69,928 | 16.8 | 25.8 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 155,940 | 164,048 | 157,717 | (4.9) | 4.0 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 1,108 | 1,271 | 1,209 | (12.8) | 5.1 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
224 | 84 | 89 | 166.7 | (5.6) | ||||||||||||||||||||||||
Total Fixed Income | 157,272 | 165,403 | 159,015 | (4.9) | 4.0 | ||||||||||||||||||||||||
U.S. | 110,312 | 116,833 | 108,714 | (5.6) | 7.5 | ||||||||||||||||||||||||
Global & Non-US | 46,960 | 48,570 | 50,301 | 26.1 | 9.6 | ||||||||||||||||||||||||
Total Fixed Income | 157,272 | 165,403 | 159,015 | (4.9) | 4.0 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 7,697 | 6,104 | 5,568 | 26.1 | 9.6 | ||||||||||||||||||||||||
Global & Non-US | 69,390 | 56,151 | 48,179 | 23.6 | 16.5 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 77,087 | 62,255 | 53,747 | 23.8 | 15.8 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
U.S. | 165,418 | 164,178 | 149,492 | 0.8 | 9.8 | ||||||||||||||||||||||||
Global & Non-US | 171,662 | 151,420 | 133,198 | 13.4 | 13.7 | ||||||||||||||||||||||||
Total | $ | 337,080 | $ | 315,598 | $ | 282,690 | 6.8 | 11.6 | |||||||||||||||||||||
Affiliated - EQH | 84,096 | 91,396 | 78,506 | (8.0) | 16.4 | ||||||||||||||||||||||||
Non-affiliated(3)
|
252,984 | 224,202 | 204,184 | 12.8 | 9.8 | ||||||||||||||||||||||||
Total | $ | 337,080 | $ | 315,598 | $ | 282,690 | 6.8 | 11.6 |
2021 Annual Report |
5
|
|
||
Revenues from Institutional Services
(by Investment Service)
|
||
|
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 240,049 | $ | 170,802 | $ | 160,421 | 40.5 | % | 6.5 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
6,119 | 5,851 | 5,838 | 4.6 | 0.2 | ||||||||||||||||||||||||
Total Equity | 246,168 | 176,653 | 166,259 | 39.4 | 6.3 | ||||||||||||||||||||||||
U.S. | 97,522 | 69,795 | 66,098 | 39.7 | 5.6 | ||||||||||||||||||||||||
Global & Non-US | 148,646 | 106,858 | 100,161 | 39.1 | 6.7 | ||||||||||||||||||||||||
Total Equity | 246,168 | 176,653 | 166,259 | 39.4 | 6.3 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 199,866 | 194,026 | 204,087 | 3.0 | (4.9) | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 1,356 | 1,355 | 1,309 | 0.1 | 3.5 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
105 | 82 | 107 | 28.0 | (23.4) | ||||||||||||||||||||||||
Fixed Income Servicing(2)
|
14,738 | 14,108 | 13,215 | 4.5 | 6.8 | ||||||||||||||||||||||||
Total Fixed Income | 216,065 | 209,571 | 218,718 | 3.1 | (4.2) | ||||||||||||||||||||||||
U.S. | 124,004 | 118,924 | 118,345 | 4.3 | 0.5 | ||||||||||||||||||||||||
Global & Non-US | 92,061 | 90,647 | 100,373 | 1.6 | (9.7) | ||||||||||||||||||||||||
Total Fixed Income | 216,065 | 209,571 | 218,718 | 3.1 | (4.2) | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(3):
|
|||||||||||||||||||||||||||||
U.S. | 64,646 | 52,222 | 54,582 | 23.8 | (4.3) | ||||||||||||||||||||||||
Global & Non-US | 59,179 | 73,354 | 39,405 | (19.3) | 86.2 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 123,825 | 125,576 | 93,987 | (1.4) | 33.6 | ||||||||||||||||||||||||
Total Investment Advisory and Services Fees: | |||||||||||||||||||||||||||||
U.S. | 286,172 | 240,941 | 239,025 | 18.8 | 0.8 | ||||||||||||||||||||||||
Global & Non-US | 299,886 | 270,859 | 239,939 | 10.7 | 12.9 | ||||||||||||||||||||||||
Total | 586,058 | 511,800 | 478,964 | 14.5 | 6.9 | ||||||||||||||||||||||||
Distribution Revenues | 474 | 588 | 704 | (19.4) | (16.5) | ||||||||||||||||||||||||
Shareholder Servicing Fees | 485 | 526 | 476 | (7.8) | 10.5 | ||||||||||||||||||||||||
Total | $ | 587,017 | $ | 512,914 | $ | 480,144 | 14.4 | 6.8 | |||||||||||||||||||||
Affiliated - EQH | 105,415 | 90,101 | 82,413 | 17.0 | 9.3 | ||||||||||||||||||||||||
Non-affiliated(4)
|
481,602 | 422,813 | 397,731 | 13.9 | 6.3 | ||||||||||||||||||||||||
Total | $ | 587,017 | $ | 512,914 | $ | 480,144 | 14.4 | 6.8 |
6
|
AllianceBernstein |
2021 Annual Report |
7
|
Retail Services Assets Under Management
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 154,200 | $ | 106,866 | $ | 81,622 | 44.3 | % | 30.9 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
40,821 | 35,995 | 34,683 | 13.4 | 3.8 | ||||||||||||||||||||||||
Total Equity | 195,021 | 142,861 | 116,305 | 36.5 | 22.8 | ||||||||||||||||||||||||
U.S. | 152,106 | 108,506 | 84,278 | 40.2 | 28.7 | ||||||||||||||||||||||||
Global & Non-US | 42,915 | 34,355 | 32,027 | 24.9 | 7.3 | ||||||||||||||||||||||||
Total Equity | 195,021 | 142,861 | 116,305 | 36.5 | 22.8 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 75,813 | 84,654 | 88,408 | (10.4) | (4.2) | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 29,009 | 23,202 | 20,750 | 25.0 | 11.8 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
12,762 | 8,231 | 8,825 | 55.0 | (6.7) | ||||||||||||||||||||||||
Total Fixed Income | 117,584 | 116,087 | 117,983 | 1.3 | (1.6) | ||||||||||||||||||||||||
U.S. | 46,361 | 36,137 | 34,830 | 28.3 | 3.8 | ||||||||||||||||||||||||
Global & Non-US | 71,223 | 79,950 | 83,153 | (10.9) | (3.9) | ||||||||||||||||||||||||
Total Fixed Income | 117,584 | 116,087 | 117,983 | 1.3 | (1.6) | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 3,595 | 3,071 | 2,470 | 17.1 | 24.3 | ||||||||||||||||||||||||
Global & Non-US | 3,718 | 3,321 | 2,408 | 12.0 | 37.9 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 7,313 | 6,392 | 4,878 | 14.4 | 31.0 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
U.S. | 202,062 | 147,714 | 121,578 | 36.8 | 21.5 | ||||||||||||||||||||||||
Global & Non-US | 117,856 | 117,626 | 117,588 | 0.2 | — | ||||||||||||||||||||||||
Total | $ | 319,918 | $ | 265,340 | $ | 239,166 | 20.6 | 10.9 | |||||||||||||||||||||
Affiliated - EQH | 44,417 | 36,765 | 34,448 | 20.8 | 6.7 | ||||||||||||||||||||||||
Non-affiliated(3)
|
275,501 | 228,575 | 204,718 | 20.5 | 11.7 | ||||||||||||||||||||||||
Total | $ | 319,918 | $ | 265,340 | $ | 239,166 | 20.6 | 10.9 |
8
|
AllianceBernstein |
Revenues from Retail Services
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 766,578 | $ | 508,973 | $ | 436,617 | 50.6 | % | 16.6 | % | |||||||||||||||||||
Equity Passively Managed(1)
|
14,773 | 14,347 | 16,173 | 3.0 | (11.3) | ||||||||||||||||||||||||
Total Equity | 781,351 | 523,320 | 452,790 | 49.3 | 15.6 | ||||||||||||||||||||||||
U.S. | 556,398 | 355,542 | 292,640 | 56.5 | 21.5 | ||||||||||||||||||||||||
Global & Non-US | 224,953 | 167,778 | 160,150 | 34.1 | 4.8 | ||||||||||||||||||||||||
Total Equity | 781,351 | 523,320 | 452,790 | 49.3 | 15.6 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 517,327 | 534,164 | 506,849 | (3.2) | 5.4 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 84,945 | 70,734 | 65,474 | 20.1 | 8.0 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
12,994 | 12,229 | 12,105 | 6.3 | 1.0 | ||||||||||||||||||||||||
Total Fixed Income | 615,266 | 617,127 | 584,428 | (0.3) | 5.6 | ||||||||||||||||||||||||
U.S. | 115,248 | 101,825 | 98,310 | 13.2 | 3.6 | ||||||||||||||||||||||||
Global & Non-US | 500,018 | 515,302 | 486,118 | (3.0) | 6.0 | ||||||||||||||||||||||||
Total Fixed Income | 615,266 | 617,127 | 584,428 | (0.3) | 5.6 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 81,872 | 57,069 | 51,958 | 43.5 | 9.8 | ||||||||||||||||||||||||
Global & Non-US | 13,117 | 12,723 | 8,946 | 3.1 | 42.2 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 94,989 | 69,792 | 60,904 | 36.1 | 14.6 | ||||||||||||||||||||||||
Total Investment Advisory and Services Fees: | |||||||||||||||||||||||||||||
U.S. | 753,518 | 514,436 | 442,908 | 46.5 | 16.1 | ||||||||||||||||||||||||
Global & Non-US | 738,086 | 695,803 | 655,214 | 6.1 | 6.2 | ||||||||||||||||||||||||
Consolidated company-sponsored investment funds | 1,243 | 733 | 883 | 69.6 | (17.0) | ||||||||||||||||||||||||
Total | 1,492,847 | 1,210,972 | 1,099,005 | 23.3 | 10.2 | ||||||||||||||||||||||||
Distribution Revenues | 644,125 | 522,056 | 447,050 | 23.4 | 16.8 | ||||||||||||||||||||||||
Shareholder Servicing Fees | 86,857 | 78,920 | 73,777 | 10.1 | 7.0 | ||||||||||||||||||||||||
Total | $ | 2,223,829 | $ | 1,811,948 | $ | 1,619,832 | 22.7 | 11.9 | |||||||||||||||||||||
Affiliated - EQH | 28,334 | 27,130 | 27,737 | 4.4 | (2.2) | ||||||||||||||||||||||||
Non-affiliated(3)
|
2,195,495 | 1,784,818 | 1,592,095 | 23.0 | 12.1 | ||||||||||||||||||||||||
Total | $ | 2,223,829 | $ | 1,811,948 | $ | 1,619,832 | 22.7 | 11.9 |
2021 Annual Report |
9
|
Private Wealth Services Assets Under Management
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 59,709 | $ | 50,854 | $ | 50,934 | 17.4 | % | (0.2) | % | |||||||||||||||||||
Equity Passively Managed(1)
|
1,764 | 666 | 174 | 164.9 | % |
n/m
|
|||||||||||||||||||||||
Total Equity | 61,473 | 51,520 | 51,108 | 19.3 | 0.8 | ||||||||||||||||||||||||
U.S. | 35,014 | 28,776 | 26,982 | 21.7 | 6.6 | ||||||||||||||||||||||||
Global & Non-US | 26,459 | 22,744 | 24,126 | 16.3 | (5.7) | ||||||||||||||||||||||||
Total Equity | 61,473 | 51,520 | 51,108 | 19.3 | 0.8 | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 14,567 | 14,515 | 12,170 | 0.4 | 19.3 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 26,929 | 25,764 | 25,117 | 4.5 | 2.6 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
230 | 195 | 372 | 17.9 | (47.6) | ||||||||||||||||||||||||
Total Fixed Income | 41,726 | 40,474 | 37,659 | 3.1 | 7.5 | ||||||||||||||||||||||||
U.S. | 36,166 | 35,042 | 32,685 | 3.2 | 7.2 | ||||||||||||||||||||||||
Global & Non-US | 5,561 | 5,432 | 4,974 | 2.4 | 9.2 | ||||||||||||||||||||||||
Total Fixed Income | 41,727 | 40,474 | 37,659 | 3.1 | 7.5 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 6,926 | 5,927 | 6,808 | 16.9 | (12.9) | ||||||||||||||||||||||||
Global & Non-US | 11,446 | 7,064 | 5,484 | 62.0 | 28.8 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 18,372 | 12,991 | 12,292 | 41.4 | 5.7 | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
U.S. | 78,106 | 69,745 | 66,475 | 12.0 | 4.9 | ||||||||||||||||||||||||
Global & Non-US | 43,466 | 35,240 | 34,584 | 23.3 | 1.9 | ||||||||||||||||||||||||
Total | $ | 121,572 | $ | 104,985 | $ | 101,059 | 15.8 | 3.9 |
10
|
AllianceBernstein |
Revenues from Private Wealth Services
(by Investment Service)
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 584,455 | $ | 487,899 | $ | 510,911 | 19.8 | % | (4.5) | % | |||||||||||||||||||
Equity Passively Managed(1)
|
4,780 | 1,113 | 334 | n/m |
n/m
|
||||||||||||||||||||||||
Total Equity | 589,235 | 489,012 | 511,245 | 20.5 | (4.3) | ||||||||||||||||||||||||
U.S. | 325,154 | 263,938 | 267,815 | 23.2 | (1.4) | ||||||||||||||||||||||||
Global & Non-US | 264,081 | 225,074 | 243,430 | 17.3 | (7.5) | ||||||||||||||||||||||||
Total Equity | 589,235 | 489,012 | 511,245 | 20.5 | (4.3) | ||||||||||||||||||||||||
Fixed Income: | |||||||||||||||||||||||||||||
Fixed Income Taxable | 72,404 | 71,575 | 63,964 | 1.2 | 11.9 | ||||||||||||||||||||||||
Fixed Income Tax-Exempt | 130,391 | 123,952 | 122,447 | 5.2 | 1.2 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
2,634 | 2,891 | 4,475 | (8.9) | (35.4) | ||||||||||||||||||||||||
Total Fixed Income | 205,429 | 198,418 | 190,886 | 3.5 | 3.9 | ||||||||||||||||||||||||
U.S. | 167,402 | 160,666 | 156,909 | 4.2 | 2.4 | ||||||||||||||||||||||||
Global & Non-US | 38,027 | 37,752 | 33,977 | 0.7 | 11.1 | ||||||||||||||||||||||||
Total Fixed Income | 205,429 | 198,418 | 190,886 | 3.5 | 3.9 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2):
|
|||||||||||||||||||||||||||||
U.S. | 249,432 | 109,169 | 123,216 | 128.5 | (11.4) | ||||||||||||||||||||||||
Global & Non-US | 71,524 | 76,065 | 68,728 | (6.0) | 10.7 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 320,956 | 185,234 | 191,944 | 73.3 | (3.5) | ||||||||||||||||||||||||
Total Investment Advisory and Services Fees: | |||||||||||||||||||||||||||||
U.S. | 741,987 | 533,773 | 547,940 | 39.0 | (2.6) | ||||||||||||||||||||||||
Global & Non-US | 373,632 | 338,891 | 346,135 | 10.3 | (2.1) | ||||||||||||||||||||||||
Total | 1,115,619 | 872,664 | 894,075 | 27.8 | (2.4) | ||||||||||||||||||||||||
Distribution Revenues | 7,641 | 7,137 | 7,289 | 7.1 | (2.1) | ||||||||||||||||||||||||
Shareholder Servicing Fees | 2,882 | 2,871 | 3,141 | 0.4 | (8.6) | ||||||||||||||||||||||||
Total | $ | 1,126,142 | $ | 882,672 | $ | 904,505 | 27.6 | (2.4) |
2021 Annual Report |
11
|
Revenues from Bernstein Research Services
|
||
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Bernstein Research Services | $ | 452,017 | $ | 459,744 | $ | 407,911 | (1.7 | %) | 12.7 | % |
12
|
AllianceBernstein |
2021 Annual Report |
13
|
14
|
AllianceBernstein |
Region: | Female | % Female | Male | % Male | Grand Total | % of Total | ||||||||||||||
Americas | 1,124 | 37 | % | 1,943 | 63 | % | 3,067 | 75 | % | |||||||||||
Asia ex Japan | 225 | 51 | % | 214 | 49 | % | 439 | 11 | % | |||||||||||
EMEA | 183 | 35 | % | 333 | 65 | % | 516 | 13 | % | |||||||||||
Japan | 46 | 55 | % | 38 | 45 | % | 84 | 2 | % | |||||||||||
Grand Total(1)
|
1,578 | 38 | % | 2,528 | 62 | % | 4,106 | 100 | % |
2021 Annual Report |
15
|
16
|
AllianceBernstein |
2021 Annual Report |
17
|
18
|
AllianceBernstein |
2021 Annual Report |
19
|
20
|
AllianceBernstein |
2021 Annual Report |
21
|
22
|
AllianceBernstein |
2021 Annual Report |
23
|
24
|
AllianceBernstein |
2021 Annual Report |
25
|
26
|
AllianceBernstein |
2021 Annual Report |
27
|
28
|
AllianceBernstein |
2021 Annual Report |
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|
Part II | ||
30
|
AllianceBernstein |
Issuer Purchases of Equity Securities
|
||
Period |
Total
Number of AB Holding Units Purchased |
Average
Price Paid Per AB Holding Unit, net of Commissions |
Total
Number of AB Holding Units Purchased as Part of Publicly Announced Plans or Programs |
Maximum
Number (or Approximate Dollar Value) of AB Holding Units that May Yet Be Purchased Under the Plans or Programs |
|||||||||||||
10/1/21-10/31/21(1)(2)
|
281,579 | $ | 50.46 | — | — | ||||||||||||
11/1/21-11/30/21 | — | — | — | — | |||||||||||||
12/1/21-12/31/21(1)
|
2,449,657 | 49.95 | — | — | |||||||||||||
Total | 2,731,236 | $ | 50.00 | — | — |
2021 Annual Report |
31
|
32
|
AllianceBernstein |
2021 Annual Report |
33
|
34
|
AllianceBernstein |
2021 Annual Report |
35
|
36
|
AllianceBernstein |
As of December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Institutions | $337.1 | $315.6 | $282.7 | 6.8 | % | 11.6 | % | ||||||||||||||||||||||
Retail | 319.9 | 265.3 | 239.2 | 20.6 | 10.9 | ||||||||||||||||||||||||
Private Wealth Management | 121.6 | 105.0 | 101.0 | 15.8 | 3.9 | ||||||||||||||||||||||||
Total | $778.6 | $685.9 | $622.9 | 13.5 | 10.1 |
As of December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Actively Managed | $287.6 | $217.8 | $177.2 | 32.1 | % | 22.9 | % | ||||||||||||||||||||||
Passively Managed(1)
|
71.6 | 64.5 | 60.1 | 10.9 | 7.3 | ||||||||||||||||||||||||
Total Equity | 359.2 | 282.3 | 237.3 | 27.2 | 19.0 | ||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||||||
Actively Managed | |||||||||||||||||||||||||||||
Taxable | 246.3 | 263.2 | 258.3 | (6.4) | 1.9 | ||||||||||||||||||||||||
Tax–exempt | 57.1 | 50.3 | 47.1 | 13.6 | 6.7 | ||||||||||||||||||||||||
Total | 303.4 | 313.5 | 305.4 | (3.2) | 2.6 | ||||||||||||||||||||||||
Passively Managed(1)
|
13.2 | 8.5 | 9.3 | 55.3 | (8.4) | ||||||||||||||||||||||||
Total Fixed Income | 316.6 | 322.0 | 314.7 | (1.7) | 2.3 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2)
|
|||||||||||||||||||||||||||||
Actively Managed | 97.3 | 79.1 | 69.3 | 23.0 | 14.2 | ||||||||||||||||||||||||
Passively Managed(1)
|
5.5 | 2.5 | 1.6 | 116.6 | 54.1 | ||||||||||||||||||||||||
Total Alternatives/Multi-Asset Solutions | 102.8 | 81.6 | 70.9 | 25.9 | 15.1 | ||||||||||||||||||||||||
Total | $778.6 | $685.9 | $622.9 | 13.5 | % | 10.1 | % |
2021 Annual Report |
37
|
Distribution Channel | ||||||||||||||||||||||||||
Institutions | Retail |
Private
Wealth Management |
Total | |||||||||||||||||||||||
(in billions) | ||||||||||||||||||||||||||
Balance as of December 31, 2020 | $315.6 | $265.3 | $105.0 | $685.9 | ||||||||||||||||||||||
Long-term flows: | ||||||||||||||||||||||||||
Sales/new accounts | 31.7 | 100.0 | 18.3 | 150.0 | ||||||||||||||||||||||
Redemptions/terminations | (23.4) | (65.1) | (15.3) | (103.8) | ||||||||||||||||||||||
Cash flow/unreinvested dividends | (6.0) | (14.1) | — | (20.1) | ||||||||||||||||||||||
Net long-term inflows(1)
|
2.3 | 20.8 | 3.0 | 26.1 | ||||||||||||||||||||||
Transfers | (0.2) | 0.2 | — | — | ||||||||||||||||||||||
Market appreciation | 19.4 | 33.6 | 13.6 | 66.6 | ||||||||||||||||||||||
Net change | 21.5 | 54.6 | 16.6 | 92.7 | ||||||||||||||||||||||
Balance as of December 31, 2021 | $337.1 | $319.9 | $121.6 | $778.6 | ||||||||||||||||||||||
Balance as of December 31, 2019 | $282.7 | $239.2 | $101.0 | $622.9 | ||||||||||||||||||||||
Long-term flows: | ||||||||||||||||||||||||||
Sales/new accounts | 30.9 | 78.9 | 14.3 | 124.1 | ||||||||||||||||||||||
Redemptions/terminations | (23.3) | (69.5) | (16.5) | (109.3) | ||||||||||||||||||||||
Cash flow/unreinvested dividends | (6.6) | (11.0) | 0.2 | (17.4) | ||||||||||||||||||||||
Net long-term inflows (outflows)(1)
|
1.0 | (1.6) | (2.0) | (2.6) | ||||||||||||||||||||||
Acquisitions | — | 0.2 | — | 0.2 | ||||||||||||||||||||||
Transfers | 1.4 | (0.6) | (0.8) | — | ||||||||||||||||||||||
Market appreciation | 30.5 | 28.1 | 6.8 | 65.4 | ||||||||||||||||||||||
Net change | 32.9 | 26.1 | 4.0 | 63.0 | ||||||||||||||||||||||
Balance as of December 31, 2020 | $315.6 | $265.3 | $105.0 | $685.9 |
38
|
AllianceBernstein |
Investment Service | |||||||||||||||||||||||||||||||||||||||||
Equity
Actively Managed |
Equity
Passively
Managed(1)
|
Fixed
Income Actively Managed- Taxable |
Fixed Income
Actively Managed-Tax- Exempt |
Fixed
Income
Passively
Managed(1)
|
Alternatives/
Multi-Asset
Solutions(2)
|
Total | |||||||||||||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $217.8 | $64.5 | $263.2 | $50.3 | $8.5 | $81.6 | $685.9 | ||||||||||||||||||||||||||||||||||
Long-term flows: | |||||||||||||||||||||||||||||||||||||||||
Sales/new accounts | 72.9 | 1.4 | 44.9 | 13.5 | 4.6 | 12.7 | 150.0 | ||||||||||||||||||||||||||||||||||
Redemptions/terminations | (39.6) | (1.1) | (52.6) | (7.8) | (0.4) | (2.3) | (103.8) | ||||||||||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (11.4) | (7.8) | (2.2) | 0.3 | 0.8 | 0.2 | (20.1) | ||||||||||||||||||||||||||||||||||
Net long-term inflows (outflows)(3)
|
21.9 | (7.5) | (9.9) | 6.0 | 5.0 | 10.6 | 26.1 | ||||||||||||||||||||||||||||||||||
Market appreciation (depreciation) | 47.9 | 14.6 | (7.0) | 0.8 | (0.3) | 10.6 | 66.6 | ||||||||||||||||||||||||||||||||||
Net change | 69.8 | 7.1 | (16.9) | 6.8 | 4.7 | 21.2 | 92.7 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $287.6 | $71.6 | $246.3 | $57.1 | $13.2 | $102.8 | $778.6 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $177.2 | $60.1 | $258.3 | $47.1 | $9.3 | $70.9 | $622.9 | ||||||||||||||||||||||||||||||||||
Long-term flows: | |||||||||||||||||||||||||||||||||||||||||
Sales/new accounts | 51.4 | 1.7 | 54.3 | 10.3 | — | 6.4 | 124.1 | ||||||||||||||||||||||||||||||||||
Redemptions/terminations | (36.7) | (1.9) | (58.3) | (9.5) | (0.3) | (2.6) | (109.3) | ||||||||||||||||||||||||||||||||||
Cash flow/unreinvested dividends | (7.3) | (4.4) | (5.8) | 0.2 | (1.3) | 1.2 | (17.4) | ||||||||||||||||||||||||||||||||||
Net long-term inflows (outflows)(3)
|
7.4 | (4.6) | (9.8) | 1.0 | (1.6) | 5.0 | (2.6) | ||||||||||||||||||||||||||||||||||
Acquisitions | — | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||
Market appreciation | 33.2 | 9.0 | 14.7 | 2.2 | 0.8 | 5.5 | 65.4 | ||||||||||||||||||||||||||||||||||
Net change | 40.6 | 4.4 | 4.9 | 3.2 | (0.8) | 10.7 | 63.0 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $217.8 | $64.5 | $263.2 | $50.3 | $8.5 | $81.6 | $685.9 |
2021 Annual Report |
39
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in billions) | ||||||||||||||
Actively Managed | ||||||||||||||
Equity | $ | 21.9 | $ | 7.4 | ||||||||||
Fixed Income | (3.9) | (8.8) | ||||||||||||
Alternatives/Multi- Asset Solutions | 8.3 | 4.5 | ||||||||||||
Total | 26.3 | 3.1 | ||||||||||||
Passively Managed | ||||||||||||||
Equity | (7.5) | (4.6) | ||||||||||||
Fixed Income | 5.0 | (1.6) | ||||||||||||
Alternatives/Multi- Asset Solutions | 2.3 | 0.5 | ||||||||||||
Total | (0.2) | (5.7) | ||||||||||||
Total net long-term inflows (outflows) | $ | 26.1 | $ | (2.6) |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Distribution Channel: | |||||||||||||||||||||||||||||
Institutions | $ | 325.7 | $ | 285.9 | $ | 265.4 | 13.9 | % | 7.7 | % | |||||||||||||||||||
Retail | 291.0 | 236.5 | 212.3 | 23.0 | 11.4 | ||||||||||||||||||||||||
Private Wealth Management | 114.1 | 97.1 | 96.5 | 17.5 | 0.7 | ||||||||||||||||||||||||
Total | $ | 730.8 | $ | 619.5 | $ | 574.2 | 18.0 | 7.9 | |||||||||||||||||||||
Investment Service: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 252.2 | $ | 179.8 | $ | 158.4 | 40.2 | 13.5 | |||||||||||||||||||||
Equity Passively Managed(1)
|
68.7 | 57.1 | 56.4 | 20.5 | 1.2 | ||||||||||||||||||||||||
Fixed Income Actively Managed – Taxable | 253.1 | 254.4 | 239.7 | (0.5) | 6.2 | ||||||||||||||||||||||||
Fixed Income Actively Managed – Tax-exempt | 53.8 | 47.9 | 44.6 | 12.3 | 7.5 | ||||||||||||||||||||||||
Fixed Income Passively Managed(1)
|
9.6 | 9.4 | 9.4 | 1.4 | 0.2 | ||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions(2)
|
93.4 | 70.9 | 65.7 | 31.7 | 7.8 | ||||||||||||||||||||||||
Total | $ | 730.8 | $ | 619.5 | $ | 574.2 | 18.0 | 7.9 |
40
|
AllianceBernstein |
1-Year |
3-Year(1)
|
5-Year(1)
|
|||||||||
Global High Income - Hedged (fixed income) | |||||||||||
Absolute return | 4.8 | % | 7.8 | % | 5.6 | % | |||||
Relative return (vs. Bloomberg Barclays Global High Yield Index - Hedged) | 2.3 | 0.7 | 0.3 | ||||||||
Global Plus - Hedged (fixed income) | |||||||||||
Absolute return | (0.5) | 4.6 | 3.8 | ||||||||
Relative return (vs. Bloomberg Barclays Global Aggregate Index - Hedged) | 0.9 | 0.6 | 0.4 | ||||||||
Intermediate Municipal Bonds (fixed income) | |||||||||||
Absolute return | 1.8 | 4.0 | 3.4 | ||||||||
Relative return (vs. Lipper Short/Int. Blended Muni Fund Avg) | 0.9 | 1.0 | 0.8 | ||||||||
U.S. Strategic Core Plus (fixed income) | |||||||||||
Absolute return | (0.5) | 5.5 | 4.2 | ||||||||
Relative return (vs. Bloomberg Barclays U.S. Aggregate Index) | 1.1 | 0.7 | 0.6 | ||||||||
Emerging Market Debt (fixed income) | |||||||||||
Absolute return | (2.1) | 6.7 | 4.9 | ||||||||
Relative return (vs. JPM EMBI Global/JPM EMBI) | (0.6) | 0.7 | 0.4 | ||||||||
Sustainable Global Thematic | |||||||||||
Absolute return | 23.7 | 31.7 | 23.5 | ||||||||
Relative return (vs. MSCI ACWI Index) | 5.2 | 11.3 | 9.1 |
2021 Annual Report |
41
|
1-Year |
3-Year(1)
|
5-Year(1)
|
|||||||||
International Strategic Core Equity | |||||||||||
Absolute return | 10.8 | 12.3 | 10.4 | ||||||||
Relative return (vs. MSCI EAFE Index) | (0.4) | (1.3) | 0.8 | ||||||||
U.S. Small & Mid Cap Value | |||||||||||
Absolute return | 37.0 | 20.2 | 11.1 | ||||||||
Relative return (vs. Russell 2500 Value Index) | 9.2 | 1.9 | 1.3 | ||||||||
U.S. Strategic Value | |||||||||||
Absolute return | 28.3 | 16.5 | 9.3 | ||||||||
Relative return (vs. Russell 1000 Value Index) | 3.1 | (1.2) | (1.8) | ||||||||
U.S. Small Cap Growth | |||||||||||
Absolute return | 10.5 | 33.1 | 26.3 | ||||||||
Relative return (vs. Russell 2000 Growth Index) | 7.7 | 12.0 | 11.8 | ||||||||
U.S. Large Cap Growth | |||||||||||
Absolute return | 29.3 | 33.2 | 26.4 | ||||||||
Relative return (vs. Russell 1000 Growth Index) | 1.7 | (0.8) | 1.1 | ||||||||
U.S. Small & Mid Cap Growth | |||||||||||
Absolute return | 11.9 | 31.5 | 23.9 | ||||||||
Relative return (vs. Russell 2500 Growth Index) | 6.9 | 6.4 | 6.3 | ||||||||
Concentrated U.S. Growth | |||||||||||
Absolute return | 32.4 | 31.3 | 23.6 | ||||||||
Relative return (vs. S&P 500 Index) | 3.7 | 5.3 | 5.1 | ||||||||
Select U.S. Equity | |||||||||||
Absolute return | 31.2 | 25.9 | 18.7 | ||||||||
Relative return (vs. S&P 500 Index) | 2.5 | (0.2) | 0.3 | ||||||||
Strategic Equities | |||||||||||
Absolute return | 26.9 | 23.7 | 16.3 | ||||||||
Relative return (vs. Russell 3000 Index) | 1.2 | (2.0) | (1.6) | ||||||||
Global Core Equity | |||||||||||
Absolute return | 19.4 | 19.6 | 15.6 | ||||||||
Relative return (vs. MSCI ACWI Index) | 0.8 | (0.8) | 1.2 | ||||||||
U.S. Strategic Core Equity | |||||||||||
Absolute return | 25.1 | 21.4 | 15.6 | ||||||||
Relative return (vs. S&P 500 Index) | (3.7) | (4.7) | (2.9) | ||||||||
Select U.S. Equity Long/Short | |||||||||||
Absolute return | 19.4 | 16.6 | 12.5 | ||||||||
Relative return (vs. S&P 500 Index) | (9.3) | (9.5) | (6.0) |
42
|
AllianceBernstein |
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands, except per unit amounts) | |||||||||||||||||||||||||||||
Net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | 19.8 | % | 5.4 | % | |||||||||||||||||||
Expenses | 3,225,140 | 2,801,100 | 2,694,995 | 15.1 | 3.9 | ||||||||||||||||||||||||
Operating income | 1,216,462 | 907,436 | 823,437 | 34.1 | 10.2 | ||||||||||||||||||||||||
Income taxes | 62,728 | 45,653 | 41,754 | 37.4 | 9.3 | ||||||||||||||||||||||||
Net income | 1,153,734 | 861,783 | 781,683 | 33.9 | 10.2 | ||||||||||||||||||||||||
Net income (loss) of consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,641 | n/m | n/m | ||||||||||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | 32.6 | 15.1 | |||||||||||||||||||||
Diluted net income per AB Unit | $ | 4.18 | $ | 3.19 | $ | 2.78 | 31.0 | 14.7 | |||||||||||||||||||||
Distributions per AB Unit | $ | 4.19 | $ | 3.20 | $ | 2.82 | 30.9 | 13.5 | |||||||||||||||||||||
Operating margin(1)
|
27.3 | % | 24.6 | % | 22.6 | % |
Higher base advisory fees | $ | 486.6 | |||
Higher distribution revenues | 122.5 | ||||
Higher performance-based fees | 112.5 | ||||
Higher employee compensation and benefits | (221.8) | ||||
Higher promotion and servicing expenses | (153.5) | ||||
Higher general and administrative expenses | (64.5) | ||||
Other | 0.9 | ||||
$ | 282.7 |
Higher base advisory fees | $ | 90.4 | |||
Higher distribution revenues | 74.7 | ||||
Higher Bernstein Research Services revenue | 51.8 | ||||
Higher net income of consolidated entities attributable to non-controlling interest | 33.8 | ||||
Lower performance-based fees | 33.0 | ||||
Higher promotion and servicing expenses | (63.6) | ||||
Higher investment losses | (55.1) | ||||
Higher employee compensation and benefits | (51.4) | ||||
Other | 0.3 | ||||
$ | 113.9 |
2021 Annual Report |
43
|
Units Outstanding
|
||
Cash Distributions
|
||
Management Operating Metrics
|
||
44
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net revenues, US GAAP basis | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Distribution-related adjustments: | ||||||||||||||||||||
Distribution revenues | (652,240) | (529,781) | (455,043) | |||||||||||||||||
Investment advisory services fees | (90,242) | (66,858) | (47,951) | |||||||||||||||||
Pass through adjustments: | ||||||||||||||||||||
Investment advisory services fees | (40,628) | (18,279) | (20,914) | |||||||||||||||||
Other revenues | (37,209) | (39,333) | (35,926) | |||||||||||||||||
Impact of consolidated company-sponsored funds | (6,933) | 954 | (33,044) | |||||||||||||||||
Long-term incentive compensation-related investment gains and dividend and interest | (6,694) | (6,772) | (8,939) | |||||||||||||||||
Write-down of investment | 1,880 | 859 | — | |||||||||||||||||
Adjusted net revenues | $ | 3,609,536 | $ | 3,049,326 | $ | 2,916,615 | ||||||||||||||
Operating income, US GAAP basis | $ | 1,216,462 | $ | 907,436 | $ | 823,437 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Real estate | (3,162) | 2,880 | 2,623 | |||||||||||||||||
Long-term incentive compensation-related items | 687 | (83) | 1,217 | |||||||||||||||||
EQH award compensation | 940 | 802 | 1,125 | |||||||||||||||||
Write-down of investment | 1,880 | 859 | — | |||||||||||||||||
Acquisition-related expenses | 3,214 | 3,301 | 6,734 | |||||||||||||||||
Contingent payment arrangements | (600) | (1,366) | (3,051) | |||||||||||||||||
Sub-total of non-GAAP adjustments | 2,959 | 6,393 | 8,648 | |||||||||||||||||
Less: Net income (loss) of consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,641 | |||||||||||||||||
Adjusted operating income | 1,214,310 | 917,998 | 802,444 | |||||||||||||||||
Adjusted income taxes | 62,658 | 46,176 | 40,684 | |||||||||||||||||
Adjusted net income | $ | 1,151,652 | $ | 871,822 | $ | 761,760 | ||||||||||||||
Diluted net income per AB Unit, GAAP basis | $ | 4.18 | $ | 3.19 | $ | 2.78 | ||||||||||||||
Impact of non-GAAP adjustments | 0.02 | 0.02 | 0.03 | |||||||||||||||||
Adjusted diluted net income per AB Unit | $ | 4.20 | $ | 3.21 | $ | 2.81 | ||||||||||||||
Operating margin, GAAP basis | 27.3 | % | 24.6 | % | 22.6 | % | ||||||||||||||
Impact of non-GAAP adjustments | 6.3 | 5.5 | 4.9 | |||||||||||||||||
Adjusted operating margin | 33.6 | % | 30.1 | % | 27.5 | % |
2021 Annual Report |
45
|
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|
AllianceBernstein |
2021 Annual Report |
47
|
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Investment advisory and services fees: | |||||||||||||||||||||||||||||
Institutions: | |||||||||||||||||||||||||||||
Base fees | $ | 540,478 | $ | 458,449 | $ | 451,125 | 17.9 | % | 1.6 | % | |||||||||||||||||||
Performance-based fees | 45,580 | 53,351 | 27,839 | (14.6) | 91.6 | ||||||||||||||||||||||||
586,058 | 511,800 | 478,964 | 14.5 | 6.9 | |||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Base fees | 1,442,178 | 1,186,560 | 1,076,495 | 21.5 | 10.2 | ||||||||||||||||||||||||
Performance-based fees | 50,669 | 24,412 | 22,510 | 107.6 | 8.4 | ||||||||||||||||||||||||
1,492,847 | 1,210,972 | 1,099,005 | 23.3 | 10.2 | |||||||||||||||||||||||||
Private Wealth Management: | |||||||||||||||||||||||||||||
Base fees | 966,749 | 817,801 | 844,809 | 18.2 | (3.2) | ||||||||||||||||||||||||
Performance-based fees | 148,870 | 54,863 | 49,266 | 171.3 | 11.4 | ||||||||||||||||||||||||
1,115,619 | 872,664 | 894,075 | 27.8 | (2.4) | |||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Base fees | 2,949,405 | 2,462,810 | 2,372,429 | 19.8 | 3.8 | ||||||||||||||||||||||||
Performance-based fees | 245,119 | 132,626 | 99,615 | 84.8 | 33.1 | ||||||||||||||||||||||||
3,194,524 | 2,595,436 | 2,472,044 | 23.1 | 5.0 | |||||||||||||||||||||||||
Bernstein Research Services | 452,017 | 459,744 | 407,911 | (1.7) | 12.7 | ||||||||||||||||||||||||
Distribution revenues | 652,240 | 529,781 | 455,043 | 23.1 | 16.4 | ||||||||||||||||||||||||
Dividend and interest income | 38,734 | 50,923 | 104,421 | (23.9) | (51.2) | ||||||||||||||||||||||||
Investment (losses) gains | (636) | (16,401) | 38,659 | (96.1) | n/m | ||||||||||||||||||||||||
Other revenues | 108,409 | 104,703 | 97,559 | 3.5 | 7.3 | ||||||||||||||||||||||||
Total revenues | 4,445,288 | 3,724,186 | 3,575,637 | 19.4 | 4.2 | ||||||||||||||||||||||||
Less: Interest expense | 3,686 | 15,650 | 57,205 | (76.4) | (72.6) | ||||||||||||||||||||||||
Net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | 19.8 | 5.4 | |||||||||||||||||||||
48
|
AllianceBernstein |
2021 Annual Report |
49
|
50
|
AllianceBernstein |
2021 Annual Report |
51
|
Years Ended December 31 | % Change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021-20 | 2020-19 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Employee compensation and benefits | $ | 1,716,013 | $ | 1,494,198 | $ | 1,442,783 | 14.8 | % | 3.6 | % | |||||||||||||||||||
Promotion and servicing: | |||||||||||||||||||||||||||||
Distribution-related payments | 708,117 | 569,283 | 487,965 | 24.4 | 16.7 | ||||||||||||||||||||||||
Amortization of deferred sales commissions | 34,364 | 27,355 | 15,029 | 25.6 | 82.0 | ||||||||||||||||||||||||
Trade execution, marketing, T&E and other | 197,486 | 189,787 | 219,860 | 4.1 | (13.7) | ||||||||||||||||||||||||
939,967 | 786,425 | 722,854 | 19.5 | 8.8 | |||||||||||||||||||||||||
General and administrative: | |||||||||||||||||||||||||||||
General and administrative | 555,608 | 485,544 | 484,750 | 14.4 | 0.2 | ||||||||||||||||||||||||
Real estate charges | — | 5,526 | 3,324 | (100.0) | 66.2 | ||||||||||||||||||||||||
555,608 | 491,070 | 488,074 | 13.1 | 0.6 | |||||||||||||||||||||||||
Contingent payment arrangements | 2,710 | 1,855 | (510) | 46.1 | n/m | ||||||||||||||||||||||||
Interest on borrowings | 5,145 | 6,180 | 13,035 | (16.7) | (52.6) | ||||||||||||||||||||||||
Amortization of intangible assets | 5,697 | 21,372 | 28,759 | (73.3) | (25.7) | ||||||||||||||||||||||||
Total | $ | 3,225,140 | $ | 2,801,100 | $ | 2,694,995 | 15.1 | 3.9 |
52
|
AllianceBernstein |
2021 Annual Report |
53
|
54
|
AllianceBernstein |
2021 Annual Report |
55
|
Contingencies | ||
Critical Accounting Estimates | ||
56
|
AllianceBernstein |
2021 Annual Report |
57
|
Market Risk, Risk Management and Derivative Financial Instruments
|
||
Investments with Interest Rate Risk—Fair Value
|
||
As of December 31 | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Fair Value |
Effect of
+100 Basis Point Change |
Fair Value |
Effect of
+100 Basis Point Change |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Fixed Income Investments: | ||||||||||||||||||||||||||
Trading | $ | 100,661 | $ | (6,976) | $ | 35,555 | $ | (2,457) |
58
|
AllianceBernstein |
Investments with Equity Price Risk—Fair Value
|
||
As of December 31 | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Fair Value |
Effect of -10%
Equity Price Change |
Fair Value |
Effect of -10%
Equity Price Change |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Equity Investments: | ||||||||||||||||||||||||||
Trading | $ | 85,704 | $ | (8,570) | $ | 137,529 | $ | (13,753) | ||||||||||||||||||
Other investments | $ | 87,053 | $ | (8,705) | $ | 80,291 | $ | (8,029) |
2021 Annual Report |
59
|
60
|
AllianceBernstein |
Performance-Based Fees
|
||
2021 Annual Report |
61
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands,
except unit amounts) |
||||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 1,285,700 | $ | 1,037,400 | ||||||||||
Cash and securities segregated, at fair value (cost $1,503,554 and $1,752,483)
|
1,503,957 | 1,753,478 | ||||||||||||
Receivables, net: | ||||||||||||||
Brokers and dealers | 65,897 | 92,638 | ||||||||||||
Brokerage clients | 2,059,842 | 1,713,377 | ||||||||||||
AB funds fees | 340,158 | 325,407 | ||||||||||||
Other fees | 185,653 | 148,746 | ||||||||||||
Investments: | ||||||||||||||
Long-term incentive compensation-related | 63,839 | 60,114 | ||||||||||||
Other | 209,579 | 193,261 | ||||||||||||
Assets of consolidated company-sponsored investment funds: | ||||||||||||||
Cash and cash equivalents | 90,326 | 36,506 | ||||||||||||
Investments | 613,025 | 302,582 | ||||||||||||
Other assets | 30,461 | 12,244 | ||||||||||||
Furniture, equipment and leasehold improvements, net | 169,175 | 147,874 | ||||||||||||
Goodwill | 3,091,763 | 3,082,778 | ||||||||||||
Intangible assets, net | 41,531 | 44,496 | ||||||||||||
Deferred sales commissions, net | 74,899 | 64,066 | ||||||||||||
Right-of-use assets | 421,980 | 418,455 | ||||||||||||
Other assets | 262,303 | 264,418 | ||||||||||||
Total assets | $ | 10,510,088 | $ | 9,697,840 |
62
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands,
except unit amounts) |
||||||||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND CAPITAL | ||||||||||||||
Liabilities: | ||||||||||||||
Payables: | ||||||||||||||
Brokers and dealers | $ | 265,957 | $ | 216,403 | ||||||||||
Securities sold not yet purchased | 3,828 | 17,791 | ||||||||||||
Brokerage clients | 3,603,558 | 3,440,266 | ||||||||||||
AB mutual funds | 94,962 | 65,550 | ||||||||||||
Accounts payable and accrued expenses | 257,307 | 197,657 | ||||||||||||
Lease liabilities | 490,735 | 505,549 | ||||||||||||
Liabilities of consolidated company-sponsored investment funds | 87,000 | 30,620 | ||||||||||||
Accrued compensation and benefits | 369,649 | 335,122 | ||||||||||||
Debt | 755,000 | 675,000 | ||||||||||||
Total liabilities | 5,927,996 | 5,483,958 | ||||||||||||
Commitments and contingencies (See Note 14)
|
||||||||||||||
Redeemable non-controlling interest | 421,169 | 102,359 | ||||||||||||
Capital: | ||||||||||||||
General Partner | 42,850 | 41,776 | ||||||||||||
Limited partners: 271,453,043 and 270,509,658 units issued and outstanding
|
4,336,211 | 4,229,485 | ||||||||||||
Receivables from affiliates | (8,333) | (8,316) | ||||||||||||
AB Holding Units held for long-term incentive compensation plans | (119,470) | (57,219) | ||||||||||||
Accumulated other comprehensive loss | (90,335) | (94,203) | ||||||||||||
Partners’ capital attributable to AB Unitholders | 4,160,923 | 4,111,523 | ||||||||||||
Total liabilities, redeemable non-controlling interest and capital | $ | 10,510,088 | $ | 9,697,840 |
2021 Annual Report |
63
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Investment advisory and services fees | $ | 3,194,524 | $ | 2,595,436 | $ | 2,472,044 | ||||||||||||||
Bernstein research services | 452,017 | 459,744 | 407,911 | |||||||||||||||||
Distribution revenues | 652,240 | 529,781 | 455,043 | |||||||||||||||||
Dividend and interest income | 38,734 | 50,923 | 104,421 | |||||||||||||||||
Investment (losses) gains | (636) | (16,401) | 38,659 | |||||||||||||||||
Other revenues | 108,409 | 104,703 | 97,559 | |||||||||||||||||
Total revenues | 4,445,288 | 3,724,186 | 3,575,637 | |||||||||||||||||
Less: Interest expense | 3,686 | 15,650 | 57,205 | |||||||||||||||||
Net revenues | 4,441,602 | 3,708,536 | 3,518,432 | |||||||||||||||||
Expenses: | ||||||||||||||||||||
Employee compensation and benefits | 1,716,013 | 1,494,198 | 1,442,783 | |||||||||||||||||
Promotion and servicing: | ||||||||||||||||||||
Distribution-related payments | 708,117 | 569,283 | 487,965 | |||||||||||||||||
Amortization of deferred sales commissions | 34,364 | 27,355 | 15,029 | |||||||||||||||||
Trade execution, marketing, T&E and other | 197,486 | 189,787 | 219,860 | |||||||||||||||||
General and administrative: | ||||||||||||||||||||
General and administrative | 555,608 | 485,544 | 484,750 | |||||||||||||||||
Real estate charges | — | 5,526 | 3,324 | |||||||||||||||||
Contingent payment arrangements | 2,710 | 1,855 | (510) | |||||||||||||||||
Interest on borrowings | 5,145 | 6,180 | 13,035 | |||||||||||||||||
Amortization of intangible assets | 5,697 | 21,372 | 28,759 | |||||||||||||||||
Total expenses | 3,225,140 | 2,801,100 | 2,694,995 | |||||||||||||||||
Operating income | 1,216,462 | 907,436 | 823,437 | |||||||||||||||||
Income tax | 62,728 | 45,653 | 41,754 | |||||||||||||||||
Net income | 1,153,734 | 861,783 | 781,683 | |||||||||||||||||
Net income (loss) of consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,641 | |||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | ||||||||||||||
Net income per AB Unit: | ||||||||||||||||||||
Basic | $ | 4.18 | $ | 3.19 | $ | 2.78 | ||||||||||||||
Diluted | $ | 4.18 | $ | 3.19 | $ | 2.78 |
64
|
AllianceBernstein |
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net income | $ | 1,153,734 | $ | 861,783 | $ | 781,683 | ||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments, before reclassification and tax: | (7,839) | 23,882 | 5,986 | |||||||||||||||||
Less: reclassification adjustment for gains (losses) included in net income upon liquidation | 4,458 | (216) | — | |||||||||||||||||
Foreign currency translation adjustments, before tax | (12,297) | 24,098 | 5,986 | |||||||||||||||||
Income tax benefit (expense) | 457 | (854) | (383) | |||||||||||||||||
Foreign currency translation adjustments, net of tax | (11,840) | 23,244 | 5,603 | |||||||||||||||||
Changes in employee benefit related items: | ||||||||||||||||||||
Amortization of prior service cost | 24 | 24 | 24 | |||||||||||||||||
Recognized actuarial gain (loss) | 15,743 | (4,280) | (7,891) | |||||||||||||||||
Changes in employee benefit related items | 15,767 | (4,256) | (7,867) | |||||||||||||||||
Income tax (expense) benefit | (59) | (187) | 274 | |||||||||||||||||
Employee benefit related items, net of tax | 15,708 | (4,443) | (7,593) | |||||||||||||||||
Other comprehensive gain (loss) | 3,868 | 18,801 | (1,990) | |||||||||||||||||
Less: Comprehensive income (loss) in consolidated entities attributable to non-controlling interests | 5,111 | (4,169) | 29,788 | |||||||||||||||||
Comprehensive income attributable to AB Unitholders | $ | 1,152,491 | $ | 884,753 | $ | 749,905 |
2021 Annual Report |
65
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
General Partner’s Capital | ||||||||||||||||||||
Balance, beginning of year | $ | 41,776 | $ | 41,225 | $ | 40,240 | ||||||||||||||
Net income | 11,486 | 8,660 | 7,521 | |||||||||||||||||
Cash distributions to General Partner | (10,605) | (8,376) | (7,042) | |||||||||||||||||
Long-term incentive compensation plans activity | 117 | (23) | 149 | |||||||||||||||||
Issuance of AB Units, net | 76 | 290 | 357 | |||||||||||||||||
Balance, end of year | 42,850 | 41,776 | 41,225 | |||||||||||||||||
Limited Partners' Capital | ||||||||||||||||||||
Balance, beginning of year | 4,229,485 | 4,174,201 | 4,075,306 | |||||||||||||||||
Net income | 1,137,137 | 857,292 | 744,521 | |||||||||||||||||
Cash distributions to Unitholders | (1,049,287) | (828,503) | (696,470) | |||||||||||||||||
Long-term incentive compensation plans activity | 11,586 | (2,147) | 14,741 | |||||||||||||||||
Issuance of AB Units, net | 7,290 | 28,642 | 35,259 | |||||||||||||||||
Other | — | — | 844 | |||||||||||||||||
Balance, end of year | 4,336,211 | 4,229,485 | 4,174,201 | |||||||||||||||||
Receivables from Affiliates | ||||||||||||||||||||
Balance, beginning of year | (8,316) | (9,011) | (11,430) | |||||||||||||||||
Long-term incentive compensation awards expense | 941 | 802 | 1,125 | |||||||||||||||||
Capital contributions from AB Holding | (958) | (107) | 1,294 | |||||||||||||||||
Balance, end of year | (8,333) | (8,316) | (9,011) | |||||||||||||||||
AB Holding Units held for Long-term Incentive Compensation Plans | ||||||||||||||||||||
Balance, beginning of year | (57,219) | (76,310) | (77,990) | |||||||||||||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (261,825) | (148,624) | (171,930) | |||||||||||||||||
(Issuance) of AB Units, net | (7,348) | (28,696) | (35,736) | |||||||||||||||||
Long-term incentive compensation awards expense | 215,484 | 194,840 | 207,057 | |||||||||||||||||
Re-valuation of AB Holding Units held in rabbi trust | (9,690) | 1,556 | (4,403) | |||||||||||||||||
Other | 1,128 | 15 | 6,692 | |||||||||||||||||
Balance, end of year | (119,470) | (57,219) | (76,310) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Balance, beginning of year | (94,203) | (113,004) | (110,866) | |||||||||||||||||
Foreign currency translation adjustment, net of tax | (11,840) | 23,244 | 5,455 | |||||||||||||||||
Changes in employee benefit related items, net of tax | 15,708 | (4,443) | (7,593) | |||||||||||||||||
Balance, end of year | (90,335) | (94,203) | (113,004) | |||||||||||||||||
Total Partners' Capital attributable to AB Unitholders | 4,160,923 | 4,111,523 | 4,017,101 | |||||||||||||||||
Non-redeemable Non-controlling Interests in Consolidated Entities | ||||||||||||||||||||
Balance, beginning of year | — | — | 949 | |||||||||||||||||
Net income | — | — | 91 | |||||||||||||||||
Foreign currency translation adjustment | — | — | 147 | |||||||||||||||||
Purchase of non-controlling interest | — | — | (1,187) | |||||||||||||||||
Balance, end of year | — | — | — | |||||||||||||||||
Total Capital | $ | 4,160,923 | $ | 4,111,523 | $ | 4,017,101 |
2021 Annual Report |
66
|
AllianceBernstein L.P. and Subsidiaries | ||
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 1,153,734 | $ | 861,783 | $ | 781,683 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Amortization of deferred sales commissions | 34,364 | 27,355 | 15,029 | |||||||||||||||||
Non-cash long-term incentive compensation expense | 216,425 | 195,642 | 208,182 | |||||||||||||||||
Depreciation and other amortization | 44,985 | 61,028 | 77,021 | |||||||||||||||||
Unrealized losses (gains) on investments | 4,454 | 10,405 | (13,431) | |||||||||||||||||
Unrealized losses (gains) on investments of consolidated company-sponsored investment funds | 1,882 | (854) | (36,150) | |||||||||||||||||
Non-cash lease expense | 98,773 | 98,798 | 103,773 | |||||||||||||||||
Other, net | 22,580 | (2,914) | 10,281 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease (increase) in securities, segregated | 249,521 | (658,612) | 74,688 | |||||||||||||||||
(Increase) decrease in receivables | (360,789) | (182,684) | 223,137 | |||||||||||||||||
(Increase) decrease in investments | (27,000) | 7,597 | 460,347 | |||||||||||||||||
(Increase) decrease in investments of consolidated company-sponsored investment funds | (312,325) | 279,276 | (193,158) | |||||||||||||||||
(Increase) in deferred sales commissions | (45,197) | (55,125) | (34,177) | |||||||||||||||||
(Increase) decrease in other assets | (6,578) | 69,160 | (23,140) | |||||||||||||||||
Decrease in other assets and liabilities of consolidated company-sponsored investment funds, net | 38,161 | 7,169 | 11,437 | |||||||||||||||||
Increase (decrease) in payables | 214,139 | 861,502 | (641,369) | |||||||||||||||||
Increase (decrease) in accounts payable and accrued expenses | 35,877 | 10,666 | (56,518) | |||||||||||||||||
Increase (decrease) in accrued compensation and benefits | 50,545 | 46,885 | (7,486) | |||||||||||||||||
Cash payments to relieve operating lease liabilities | (114,769) | (115,656) | (132,669) | |||||||||||||||||
Net cash provided by operating activities | 1,298,782 | 1,521,421 | 827,480 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of equity method investments | — | (4,079) | — | |||||||||||||||||
Purchases of furniture, equipment and leasehold improvements | (61,931) | (41,504) | (28,303) | |||||||||||||||||
Acquisition of businesses, net of cash acquired | (3,793) | (13,552) | 5,255 | |||||||||||||||||
Net cash used in investing activities | (65,724) | (59,135) | (23,048) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from debt, net | 80,000 | 115,000 | 2,105 | |||||||||||||||||
Increase (decrease) in overdrafts payable | 16,192 | (12,633) | (59,924) | |||||||||||||||||
Distributions to General Partner and Unitholders | (1,059,892) | (836,879) | (703,512) | |||||||||||||||||
Subscriptions (redemptions) of non-controlling interests of consolidated company-sponsored investment funds, net | 313,699 | (219,033) | 150,091 | |||||||||||||||||
Capital contributions (to) from affiliates | (2,346) | (867) | 269 | |||||||||||||||||
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units | 3,402 | 147 | 11,511 | |||||||||||||||||
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (261,825) | (148,624) | (171,930) | |||||||||||||||||
Other, net | (2,186) | 306 | (3,571) | |||||||||||||||||
Net cash used in financing activities | (912,956) | (1,102,583) | (774,961) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (17,982) | 23,032 | 8,376 | |||||||||||||||||
Net increase in cash and cash equivalents | 302,120 | 382,735 | 37,847 | |||||||||||||||||
Cash and cash equivalents as of beginning of the period | 1,073,906 | 691,171 | 653,324 | |||||||||||||||||
Cash and cash equivalents as of end of the period | $ | 1,376,026 | $ | 1,073,906 | $ | 691,171 | ||||||||||||||
Cash paid: | ||||||||||||||||||||
Interest paid | $ | 5,263 | $ | 18,858 | $ | 66,002 | ||||||||||||||
Income taxes paid | 55,656 | 59,791 | 52,444 | |||||||||||||||||
Non-cash investing activities: | ||||||||||||||||||||
Fair value of assets acquired (excluding cash acquired of $2.8 million, $0.6 million and $11.8 million, for 2021, 2020 and 2019, respectively)
|
13,235 | 18,389 | 28,966 | |||||||||||||||||
Fair value of liabilities assumed | 1,642 | 437 | 16,837 | |||||||||||||||||
Non-cash financing activities: | ||||||||||||||||||||
Payables recorded under contingent payment arrangements | 7,800 | 4,400 | 17,384 |
2021 Annual Report |
67
|
AllianceBernstein L.P. and Subsidiaries | ||
68
|
AllianceBernstein |
EQH and its subsidiaries | 63.0 | % | |||
AB Holding | 36.2 | ||||
Unaffiliated holders | 0.8 | ||||
100.0 | % |
Investment advisory and services fees
|
||
2021 Annual Report |
69
|
Bernstein Research Services
|
||
Distribution Revenues
|
||
70
|
AllianceBernstein |
Other Revenues
|
||
Non-Contractual Revenues
|
||
Contract Assets and Liabilities
|
||
2021 Annual Report |
71
|
72
|
AllianceBernstein |
2021 Annual Report |
73
|
74
|
AllianceBernstein |
2021 Annual Report |
75
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in millions) | ||||||||||||||
Total amount of AB Holding Units Purchased(1)
|
5.6 | 5.4 | ||||||||||||
Total Cash Paid for AB Holding Units Purchased(1)
|
$ | 262.3 | $ | 149.0 | ||||||||||
Open Market Purchases of AB Holding Units Purchased(2)
|
2.6 | 3.1 | ||||||||||||
Total Cash Paid for Open Market Purchases of AB Holding Units(2)
|
$ | 117.9 | $ | 74.0 |
76
|
AllianceBernstein |
2021 Annual Report |
77
|
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Subject to contracts with customers: | ||||||||||||||||||||
Investment advisory and services fees | ||||||||||||||||||||
Base fees | $ | 2,949,405 | $ | 2,462,810 | $ | 2,372,429 | ||||||||||||||
Performance-based fees | 245,119 | 132,626 | 99,615 | |||||||||||||||||
Bernstein research services | 452,017 | 459,744 | 407,911 | |||||||||||||||||
Distribution revenues | ||||||||||||||||||||
All-in-management fees | 350,674 | 331,268 | 291,999 | |||||||||||||||||
12b-1 fees | 83,920 | 75,973 | 80,268 | |||||||||||||||||
Other distribution fees | 217,646 | 122,540 | 82,776 | |||||||||||||||||
Other revenues | ||||||||||||||||||||
Shareholder servicing fees | 90,225 | 82,317 | 77,394 | |||||||||||||||||
Other | 16,034 | 21,240 | 17,924 | |||||||||||||||||
4,405,040 | 3,688,518 | 3,430,316 | ||||||||||||||||||
Not subject to contracts with customers: | ||||||||||||||||||||
Dividend and interest income, net of interest expense | 35,048 | 35,273 | 47,216 | |||||||||||||||||
Investment (losses) gains | (636) | (16,401) | 38,659 | |||||||||||||||||
Other revenues | 2,150 | 1,146 | 2,241 | |||||||||||||||||
36,562 | 20,018 | 88,116 | ||||||||||||||||||
Total net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 |
78
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||
Net income attributable to AB Unitholders | $ | 1,148,623 | $ | 865,952 | $ | 752,042 | ||||||||||||||
Weighted average units outstanding—basic | 271,729 | 269,058 | 268,075 | |||||||||||||||||
Dilutive effect of compensatory options to buy AB Holding Units | 11 | 27 | 44 | |||||||||||||||||
Weighted average units outstanding—diluted | 271,740 | 269,085 | 268,119 | |||||||||||||||||
Basic net income per AB Unit | $ | 4.18 | $ | 3.19 | $ | 2.78 | ||||||||||||||
Diluted net income per AB Unit | $ | 4.18 | $ | 3.19 | $ | 2.78 |
Years Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Anti-dilutive options excluded from diluted net income | — | 29,056 | 29,056 |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Equity securities: | ||||||||||||||
Long-term incentive compensation-related | $ | 32,237 | $ | 34,351 | ||||||||||
Seed capital | 133,992 | 75,766 | ||||||||||||
Other | 18,243 | 55,439 | ||||||||||||
Exchange-traded options | 1,893 | 7,527 | ||||||||||||
Investments in limited partnership hedge funds: | ||||||||||||||
Long-term incentive compensation-related | 31,602 | 25,762 | ||||||||||||
Seed capital | 19,318 | 16,646 | ||||||||||||
Time deposits | 21,024 | 18,602 | ||||||||||||
Other | 15,109 | 19,282 | ||||||||||||
Total investments | $ | 273,418 | $ | 253,375 |
2021 Annual Report |
79
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Net gains recognized during the period | $ | 19,240 | $ | 17,927 | ||||||||||
Less: net gains recognized during the period on equity securities sold during the period | 23,697 | 27,357 | ||||||||||||
Unrealized losses recognized during the period on equity securities held | $ | (4,457) | $ | (9,430) |
80
|
AllianceBernstein |
Notional
Value |
Derivative
Assets |
Derivative
Liabilities |
Gains
(Losses) |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Exchange-traded futures | $ | 131,876 | $ | 392 | $ | 1,186 | $ | (5,072) | ||||||||||||||||||
Currency forwards | 66,058 | 7,344 | 6,980 | 1,746 | ||||||||||||||||||||||
Interest rate swaps | 13,483 | 497 | 833 | (316) | ||||||||||||||||||||||
Credit default swaps | 155,757 | 6,594 | 6,967 | (2,914) | ||||||||||||||||||||||
Total return swaps | 63,817 | 595 | 527 | (6,433) | ||||||||||||||||||||||
Option swaps | 50,000 | — | 430 | (309) | ||||||||||||||||||||||
Total derivatives | $ | 480,991 | $ | 15,422 | $ | 16,923 | $ | (13,298) | ||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Exchange-traded futures | $ | 142,886 | $ | 118 | $ | 1,834 | $ | (15,743) | ||||||||||||||||||
Currency forwards | 63,906 | 8,576 | 8,451 | (1,779) | ||||||||||||||||||||||
Interest rate swaps | 60,997 | 2,043 | 2,955 | (347) | ||||||||||||||||||||||
Credit default swaps | 167,649 | 10,910 | 13,304 | (104) | ||||||||||||||||||||||
Total return swaps | 52,061 | 94 | 1,847 | (15,242) | ||||||||||||||||||||||
Option swaps | 2,486 | — | 2,146 | (2,374) | ||||||||||||||||||||||
Total derivatives | $ | 489,985 | $ | 21,741 | $ | 30,537 | $ | (35,589) |
2021 Annual Report |
81
|
Gross
Amounts of Recognized Assets |
Gross
Amounts Offset in the Statement of Financial Condition |
Net
Amounts of Assets Presented in the Statement of Financial Condition |
Financial
Instruments Collateral |
Cash Collateral
Received |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Securities borrowed | $ | 19,899 | $ | — | $ | 19,899 | $ | (18,327) | $ | — | $ | 1,572 | ||||||||||||||||||||||||||
Derivatives | $ | 15,422 | $ | — | $ | 15,422 | $ | — | $ | (2,872) | $ | 12,550 | ||||||||||||||||||||||||||
Long exchange-traded options | $ | 1,893 | $ | — | $ | 1,893 | $ | — | $ | — | $ | 1,893 | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Securities borrowed | $ | 7,808 | $ | — | $ | 7,808 | $ | (7,344) | $ | — | $ | 464 | ||||||||||||||||||||||||||
Derivatives | $ | 21,741 | $ | — | $ | 21,741 | $ | — | $ | (380) | $ | 21,361 | ||||||||||||||||||||||||||
Long exchange-traded options | $ | 7,527 | $ | — | $ | 7,527 | $ | — | $ | — | $ | 7,527 |
82
|
AllianceBernstein |
Gross
Amounts of Recognized Liabilities |
Gross
Amounts Offset in the Statement of Financial Condition |
Net
Amounts of Liabilities Presented in the Statement of Financial Condition |
Financial
Instruments Collateral |
Cash Collateral
Pledged |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Securities loaned | $ | 23,911 | $ | — | $ | 23,911 | $ | (23,373) | $ | — | $ | 538 | ||||||||||||||||||||||||||
Derivatives | $ | 16,923 | $ | — | $ | 16,923 | $ | — | $ | (5,572) | $ | 11,351 | ||||||||||||||||||||||||||
Short exchange-traded options | $ | 2,774 | $ | — | $ | 2,774 | $ | — | $ | — | $ | 2,774 | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | 30,537 | $ | — | $ | 30,537 | $ | — | $ | (6,374) | $ | 24,163 | ||||||||||||||||||||||||||
Short exchange-traded options | $ | 12,486 | $ | — | $ | 12,486 | $ | — | $ | — | $ | 12,486 |
2021 Annual Report |
83
|
Level 1 | Level 2 | Level 3 |
NAV Expedient(1)
|
Other | Total | |||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
Money markets | $ | 151,156 | $ | — | $ | — | $ | — | $ | — | $ | 151,156 | ||||||||||||||||||||||||||
Securities segregated (U.S. Treasury Bills) | — | 1,503,828 | — | — | — | 1,503,828 | ||||||||||||||||||||||||||||||||
Derivatives | 392 | 15,030 | — | — | — | 15,422 | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Equity securities | 144,917 | 39,284 | 126 | 145 | — | 184,472 | ||||||||||||||||||||||||||||||||
Long exchange-traded options | 1,893 | — | — | — | — | 1,893 | ||||||||||||||||||||||||||||||||
Limited partnership hedge funds(2)
|
— | — | — | — | 50,920 | 50,920 | ||||||||||||||||||||||||||||||||
Time deposits(3)
|
— | — | — | — | 21,024 | 21,024 | ||||||||||||||||||||||||||||||||
Other investments | 9,094 | — | — | — | 6,015 | 15,109 | ||||||||||||||||||||||||||||||||
Total investments | 155,904 | 39,284 | 126 | 145 | 77,959 | 273,418 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 307,452 | $ | 1,558,142 | $ | 126 | $ | 145 | $ | 77,959 | $ | 1,943,824 | ||||||||||||||||||||||||||
Securities sold not yet purchased: | ||||||||||||||||||||||||||||||||||||||
Short equities – corporate | $ | 1,054 | $ | — | $ | — | $ | — | $ | — | $ | 1,054 | ||||||||||||||||||||||||||
Short exchange-traded options | 2,774 | — | — | — | — | 2,774 | ||||||||||||||||||||||||||||||||
Derivatives | 1,186 | 15,737 | — | — | — | 16,923 | ||||||||||||||||||||||||||||||||
Contingent payment arrangements | — | — | 38,260 | — | — | 38,260 | ||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 5,014 | $ | 15,737 | $ | 38,260 | $ | — | $ | — | $ | 59,011 | ||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Money markets | $ | 130,675 | $ | — | $ | — | $ | — | $ | — | $ | 130,675 | ||||||||||||||||||||||||||
Securities segregated (U.S. Treasury Bills) | — | 1,752,906 | — | — | — | 1,752,906 | ||||||||||||||||||||||||||||||||
Derivatives | 118 | 21,623 | — | — | — | 21,741 | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Equity securities | 147,705 | 17,565 | 125 | 161 | — | 165,556 | ||||||||||||||||||||||||||||||||
Long exchange-traded options | 7,527 | — | — | — | — | 7,527 | ||||||||||||||||||||||||||||||||
Limited partnership hedge funds(2)
|
— | — | — | — | 42,408 | 42,408 | ||||||||||||||||||||||||||||||||
Time deposits(3)
|
— | — | — | — | 18,602 | 18,602 | ||||||||||||||||||||||||||||||||
Other investments | 7,011 | — | — | — | 12,271 | 19,282 | ||||||||||||||||||||||||||||||||
Total investments | 162,243 | 17,565 | 125 | 161 | 73,281 | 253,375 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 293,036 | $ | 1,792,094 | $ | 125 | $ | 161 | $ | 73,281 | $ | 2,158,697 | ||||||||||||||||||||||||||
Securities sold not yet purchased: | ||||||||||||||||||||||||||||||||||||||
Short equities – corporate | $ | 5,305 | $ | — | $ | — | $ | — | $ | — | $ | 5,305 | ||||||||||||||||||||||||||
Short exchange-traded options | 12,486 | — | — | — | — | 12,486 | ||||||||||||||||||||||||||||||||
Derivatives | 1,834 | 28,703 | — | — | — | 30,537 | ||||||||||||||||||||||||||||||||
Contingent payment arrangements | — | — | 27,750 | — | — | 27,750 | ||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 19,625 | $ | 28,703 | $ | 27,750 | $ | — | $ | — | $ | 76,078 |
84
|
AllianceBernstein |
December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Balance as of beginning of period | $ | 125 | $ | 119 | ||||||||||
Purchases | — | — | ||||||||||||
Sales | — | — | ||||||||||||
Realized gains (losses), net | — | — | ||||||||||||
Unrealized gains (losses), net | 1 | 6 | ||||||||||||
Balance as of end of period | $ | 126 | $ | 125 |
2021 Annual Report |
85
|
December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Balance as of beginning of period | $ | 27,750 | $ | 22,911 | ||||||||||
Addition | 7,800 | 4,400 | ||||||||||||
Accretion | 3,310 | 3,105 | ||||||||||||
Changes in estimates | (600) | (1,366) | ||||||||||||
Payments | — | (1,300) | ||||||||||||
Balance as of end of period | $ | 38,260 | $ | 27,750 |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Furniture and equipment | $ | 584,161 | $ | 556,966 | ||||||||||
Leasehold improvements | 301,036 | 284,080 | ||||||||||||
Total | 885,197 | 841,046 | ||||||||||||
Less: Accumulated depreciation and amortization | (716,022) | (693,172) | ||||||||||||
Furniture, equipment and leasehold improvements, net | $ | 169,175 | $ | 147,874 |
86
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Carrying amount of deferred sales commissions | $ | 177,233 | $ | 116,484 | ||||||||||
Less: Accumulated amortization | (53,976) | (30,001) | ||||||||||||
Cumulative CDSC received | (48,358) | (22,417) | ||||||||||||
Deferred sales commissions, net | $ | 74,899 | $ | 64,066 |
2022 | $ | 35,349 | |||
2023 | 26,176 | ||||
2024 | 12,676 | ||||
2025 | 698 | ||||
Total | $ | 74,899 |
2021 Annual Report |
87
|
88
|
AllianceBernstein |
Classification | December 31, 2021 | December 31, 2020 | |||||||||||||||
(in thousands) | |||||||||||||||||
Operating Leases | |||||||||||||||||
Operating lease right-of-use assets | Right-of-use assets | $ | 414,105 | $ | 416,007 | ||||||||||||
Operating lease liabilities | Lease liabilities | 482,781 | 503,174 | ||||||||||||||
Finance Leases | |||||||||||||||||
Property and equipment, gross | Right-of-use assets | 10,947 | 5,167 | ||||||||||||||
Amortization of right-of-use assets | Right-of-use assets | (3,072) | (2,719) | ||||||||||||||
Property and equipment, net | 7,875 | 2,448 | |||||||||||||||
Finance lease liabilities | Lease liabilities | 7,954 | 2,375 |
Years Ended December 31 | |||||||||||||||||||||||||||||
Classification | 2021 | 2020 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Operating lease cost | General and administrative | $ | 97,466 | $ | 90,212 | ||||||||||||||||||||||||
Financing lease cost: | |||||||||||||||||||||||||||||
Amortization of right-of-use assets | General and administrative | 2,355 | 1,755 | ||||||||||||||||||||||||||
Interest on lease liabilities | Interest expense | 107 | 86 | ||||||||||||||||||||||||||
Total finance lease cost | 2,462 | 1,841 | |||||||||||||||||||||||||||
Variable lease cost (1)
|
General and administrative | 39,827 | 38,208 | ||||||||||||||||||||||||||
Sublease income | General and administrative | (37,317) | (38,622) | ||||||||||||||||||||||||||
Net lease cost | $ | 102,438 | $ | 91,639 |
Operating Leases | Financing Leases | Total | ||||||||||||||||||
Year ending December 31, | (in thousands) | |||||||||||||||||||
2022 | $ | 100,604 | $ | 2,616 | $ | 103,220 | ||||||||||||||
2023 | 97,049 | 2,354 | 99,403 | |||||||||||||||||
2024 | 99,259 | 1,510 | 100,769 | |||||||||||||||||
2025 | 33,060 | 1,214 | 34,274 | |||||||||||||||||
2026 | 32,047 | 478 | 32,525 | |||||||||||||||||
Thereafter | 169,074 | — | 169,074 | |||||||||||||||||
Total lease payments | 531,093 | 8,172 | $ | 539,265 | ||||||||||||||||
Less interest | (48,312) | (218) | ||||||||||||||||||
Present value of lease liabilities | $ | 482,781 | $ | 7,954 |
2021 Annual Report |
89
|
Lease term and discount rate: | |||||
Weighted average remaining lease term (years): | |||||
Operating leases | 7.57 | ||||
Finance leases | 3.62 | ||||
Weighted average discount rate: | |||||
Operating leases | 2.77 | % | |||
Finance leases | 1.60 | % |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Right-of-use assets obtained in exchange for lease obligations(1):
|
||||||||||||||
Operating leases | $ | 82,379 | $ | 135,919 | ||||||||||
Finance leases | 7,782 | 1,695 |
Payments | Sublease Receipts | Net Payments | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
2022 | $ | 107.1 | $ | (31.2) | $ | 75.9 | ||||||||||||||
2023 | 99.4 | (31.6) | $ | 67.8 | ||||||||||||||||
2024 | 100.7 | (30.7) | $ | 70.0 | ||||||||||||||||
2025 | 51.6 | — | $ | 51.6 | ||||||||||||||||
2026 | 49.9 | — | $ | 49.9 | ||||||||||||||||
2027 and thereafter
|
528.3 | — | 528.3 | |||||||||||||||||
Total future minimum payments | $ | 937.0 | $ | (93.5) | $ | 843.5 |
90
|
AllianceBernstein |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
VIEs | VOEs | Total | VIEs | VOEs | Total | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 90,326 | $ | — | $ | 90,326 | $ | 36,370 | $ | 136 | $ | 36,506 | |||||||||||||||||||||||||||||
Investments | 613,025 | — | 613,025 | 242,541 | 60,041 | 302,582 | |||||||||||||||||||||||||||||||||||
Other assets | 30,461 | — | 30,461 | 4,859 | 7,385 | 12,244 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 733,812 | $ | — | $ | 733,812 | $ | 283,770 | $ | 67,562 | $ | 351,332 | |||||||||||||||||||||||||||||
Liabilities | $ | 87,000 | $ | — | $ | 87,000 | $ | 7,741 | $ | 22,879 | $ | 30,620 | |||||||||||||||||||||||||||||
Redeemable non-controlling interest | 421,169 | — | 421,169 | 82,753 | 19,606 | 102,359 | |||||||||||||||||||||||||||||||||||
Partners' capital attributable to AB Unitholders | 225,643 | — | 225,643 | 193,276 | 25,077 | 218,353 | |||||||||||||||||||||||||||||||||||
Total liabilities, redeemable non-controlling interest and partners' capital | $ | 733,812 | $ | — | $ | 733,812 | $ | 283,770 | $ | 67,562 | $ | 351,332 | |||||||||||||||||||||||||||||
2021 Annual Report |
91
|
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||
Investments - VIEs | $ | 165,415 | $ | 444,253 | $ | 3,357 | $ | 613,025 | ||||||||||||||||||||||||
Investments - VOEs | — | — | — | — | ||||||||||||||||||||||||||||
Derivatives - VIEs | 622 | 5,265 | — | 5,887 | ||||||||||||||||||||||||||||
Derivatives - VOEs | — | — | — | — | ||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 166,037 | $ | 449,518 | $ | 3,357 | $ | 618,912 | ||||||||||||||||||||||||
Derivatives - VIEs | $ | 16,291 | $ | 2,051 | $ | — | $ | 18,342 | ||||||||||||||||||||||||
Derivatives - VOEs | — | — | — | — | ||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 16,291 | $ | 2,051 | $ | — | $ | 18,342 | ||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||
Investments - VIEs | $ | 73,909 | $ | 168,114 | $ | 518 | $ | 242,541 | ||||||||||||||||||||||||
Investments - VOEs | — | 59,940 | 101 | 60,041 | ||||||||||||||||||||||||||||
Derivatives - VIEs | 442 | 2,782 | — | 3,224 | ||||||||||||||||||||||||||||
Derivatives - VOEs | — | 464 | — | 464 | ||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 74,351 | $ | 231,300 | $ | 619 | $ | 306,270 | ||||||||||||||||||||||||
Derivatives - VIEs | $ | 1,649 | $ | 5,244 | $ | — | $ | 6,893 | ||||||||||||||||||||||||
Derivatives - VOEs | — | 664 | — | 664 | ||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 1,649 | $ | 5,908 | $ | — | $ | 7,557 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Balance as of beginning of period | $ | 619 | $ | 854 | ||||||||||
Deconsolidated funds | (717) | (135) | ||||||||||||
Transfers (out) in | (205) | 552 | ||||||||||||
Purchases | 3,675 | 259 | ||||||||||||
Sales | (7) | (571) | ||||||||||||
Realized gains (losses), net | 3 | (99) | ||||||||||||
Unrealized (losses), net | (11) | (242) | ||||||||||||
Accrued discounts | — | 1 | ||||||||||||
Balance as of end of period | $ | 3,357 | $ | 619 |
92
|
AllianceBernstein |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Condition | Net Amounts of Assets Presented in the Statement of Financial Condition |
Financial
Instruments |
Cash Collateral
Received |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 5,887 | $ | — | $ | 5,887 | $ | — | $ | (904) | $ | 4,983 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 3,224 | $ | — | $ | 3,224 | $ | — | $ | (513) | $ | 2,711 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | 464 | $ | — | $ | 464 | $ | — | $ | — | $ | 464 |
2021 Annual Report |
93
|
Gross
Amounts of Recognized Liabilities |
Gross Amounts Offset in the Statement of Financial Condition |
Net Amounts
of Liabilities Presented in the Statement of Financial Condition |
Financial
Instruments |
Cash Collateral
Pledged |
Net
Amount |
|||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 18,342 | $ | — | $ | 18,342 | $ | — | $ | (1,824) | $ | 16,518 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Derivatives - VIEs | $ | 6,893 | $ | — | $ | 6,893 | $ | — | $ | (4,201) | $ | 2,692 | ||||||||||||||||||||||||||
Derivatives - VOEs | $ | 664 | $ | — | $ | 664 | $ | — | $ | (138) | $ | 526 |
94
|
AllianceBernstein |
2021 Annual Report |
95
|
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Change in projected benefit obligation: | ||||||||||||||
Projected benefit obligation at beginning of year | $ | 151,124 | $ | 136,113 | ||||||||||
Interest cost | 3,794 | 4,443 | ||||||||||||
Plan settlements | (5,803) | — | ||||||||||||
Actuarial (gain) loss | (4,447) | 16,131 | ||||||||||||
Benefits paid | (2,806) | (5,563) | ||||||||||||
Projected benefit obligation at end of year | 141,862 | 151,124 | ||||||||||||
Change in plan assets: | ||||||||||||||
Plan assets at fair value at beginning of year | 125,022 | 114,080 | ||||||||||||
Actual return on plan assets | 14,526 | 16,505 | ||||||||||||
Employer contribution | — | — | ||||||||||||
Plan settlements | (5,803) | — | ||||||||||||
Benefits paid | (2,806) | (5,563) | ||||||||||||
Plan assets at fair value at end of year | 130,939 | 125,022 | ||||||||||||
Funded status | $ | (10,923) | $ | (26,102) |
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Unrecognized net gain (loss) from experience different from that assumed and effects of changes and assumptions | $ | 15,858 | $ | (4,089) | $ | (7,934) | ||||||||||||||
Prior service cost | 24 | 24 | 24 | |||||||||||||||||
15,882 | (4,065) | (7,910) | ||||||||||||||||||
Income tax (expense) benefit | (87) | (216) | 312 | |||||||||||||||||
Other comprehensive income (loss) | $ | 15,795 | $ | (4,281) | $ | (7,598) |
96
|
AllianceBernstein |
Retirement Plan | Retired Individual Plan | Foreign Retirement Plans |
OCI
Statement |
|||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Recognized actuarial gain (loss) | $ | 15,858 | $ | 16 | $ | (131) | $ | 15,743 | ||||||||||||||||||
Amortization of prior service cost | 24 | — | — | 24 | ||||||||||||||||||||||
Changes in employee benefit related items | 15,882 | 16 | (131) | 15,767 | ||||||||||||||||||||||
Income tax (expense) benefit | (87) | (1) | 29 | (59) | ||||||||||||||||||||||
Employee benefit related items, net of tax | $ | 15,795 | $ | 15 | $ | (102) | $ | 15,708 |
2021 Annual Report |
97
|
2022 | $ | 8,817 | |||
2023 | 7,630 | ||||
2024 | 7,460 | ||||
2025 | 9,642 | ||||
2026 | 8,787 | ||||
2027 - 2031
|
45,873 |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Interest cost on projected benefit obligations | $ | 3,794 | $ | 4,443 | $ | 4,944 | ||||||||||||||
Expected return on plan assets | (6,351) | (6,084) | (5,639) | |||||||||||||||||
Amortization of prior service cost | 24 | 24 | 24 | |||||||||||||||||
Settlement loss recognized | 2,024 | — | — | |||||||||||||||||
Recognized actuarial loss | 1,447 | 1,386 | 1,146 | |||||||||||||||||
Net pension expense | $ | 938 | $ | (231) | $ | 475 |
Years Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Discount rate on benefit obligations | 2.55 | % | 3.35 | % | 4.40 | % | |||||
Expected long-term rate of return on plan assets | 5.25 | % | 5.50 | % | 5.75 | % |
98
|
AllianceBernstein |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Cash | $ | 47 | $ | — | $ | — | $ | 47 | ||||||||||||||||||
U.S. Treasury Strips | — | 32,355 | — | 32,355 | ||||||||||||||||||||||
Fixed income mutual funds | 17,477 | — | 17,477 | |||||||||||||||||||||||
Equity mutual funds | 43,786 | — | 43,786 | |||||||||||||||||||||||
Equity securities | 14,801 | — | — | 14,801 | ||||||||||||||||||||||
Total assets in the fair value hierarchy | 76,111 | 32,355 | — | 108,466 | ||||||||||||||||||||||
Investments measured at net assets value | — | — | 22,473 | |||||||||||||||||||||||
Investments at fair value | $ | 76,111 | $ | 32,355 | $ | — | $ | 130,939 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Cash | $ | 458 | $ | — | $ | — | $ | 458 | ||||||||||||||||||
U.S. Treasury Strips | — | 26,599 | — | 26,599 | ||||||||||||||||||||||
Fixed income mutual funds | 17,834 | — | — | 17,834 | ||||||||||||||||||||||
Equity mutual funds | 44,020 | — | — | 44,020 | ||||||||||||||||||||||
Equity securities | 14,376 | — | — | 14,376 | ||||||||||||||||||||||
Total assets in the fair value hierarchy | 76,688 | 26,599 | — | 103,287 | ||||||||||||||||||||||
Investments measured at net assets value | — | — | — | 21,735 | ||||||||||||||||||||||
Investments at fair value | $ | 76,688 | $ | 26,599 | $ | — | $ | 125,022 |
2021 Annual Report |
99
|
100
|
AllianceBernstein |
Options to Buy
AB Holding Units |
Weighted
Average Exercise Price Per Option |
Weighted
Average Remaining Contractual Term (Years) |
Aggregate
Intrinsic Value (in thousands) |
|||||||||||||||||||||||
Outstanding as of December 31, 2020 | 148,985 | $ | 23.61 | 1.2 | ||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||
Exercised | (143,211) | 23.75 | ||||||||||||||||||||||||
Forfeited | — | — | ||||||||||||||||||||||||
Expired | — | — | ||||||||||||||||||||||||
Outstanding as of December 31, 2021 | 5,774 | $ | 20.12 | 0.33 | $ | 165.8 | ||||||||||||||||||||
Exercisable as of December 31, 2021 | 5,774 | $ | 20.12 | 0.33 | $ | 165.8 | ||||||||||||||||||||
Vested or expected to vest as of December 31, 2021 | 5,774 | $ | 20.12 | 0.33 | $ | 165.8 |
2021 | 2020 | 2019 | ||||||||||||||||||
Restricted Units Awarded | 35,358 | 50,232 | 45,420 | |||||||||||||||||
Weighted Average Grant Date Fair Value | $ | 44.29 | $ | 23.69 | $ | 29.33 | ||||||||||||||
Compensation Expense (in millions) | $ | 1.6 | $ | 1.2 | $ | 1.3 |
2021 Annual Report |
101
|
2021 | 2020 | 2019 | ||||||||||||||||||
(in millions excluding share prices) | ||||||||||||||||||||
Restricted Units Awarded | 3.4 | 0.4 | 1.9 | |||||||||||||||||
Grant Date Fair Value Range |
$29.06 - $53.86
|
$18.80 - $35.42
|
$27.32 - $30.85
|
|||||||||||||||||
Compensation Expense | $ | 40.9 | $ | 32.1 | $ | 36.7 |
AB Holding
Units |
Weighted Average
Grant Date Fair Value per AB Holding Unit |
||||||||||
Unvested as of December 31, 2020 | 18,864,574 | $ | 28.58 | ||||||||
Granted | 6,984,456 | 39.68 | |||||||||
Vested | (7,108,465) | 27.99 | |||||||||
Forfeited | (609,825) | 28.99 | |||||||||
Unvested as of December 31, 2021 | 18,130,740 | $ | 33.98 |
2021 | 2020 | |||||||
Outstanding as of January 1, | 270,509,658 | 270,380,314 | ||||||
Options exercised | 143,211 | 5,182 | ||||||
Units issued | 3,917,437 | 3,363,132 | ||||||
Units retired(1)
|
(3,117,263) | (3,238,970) | ||||||
Outstanding as of December 31, | 271,453,043 | 270,509,658 |
102
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Earnings before income taxes: | ||||||||||||||||||||
United States | $ | 1,007,847 | $ | 743,687 | $ | 697,501 | ||||||||||||||
Foreign | 208,615 | 163,749 | 125,936 | |||||||||||||||||
Total | $ | 1,216,462 | $ | 907,436 | $ | 823,437 | ||||||||||||||
Income tax expense: | ||||||||||||||||||||
Partnership UBT | $ | 6,951 | $ | 3,356 | $ | 9,196 | ||||||||||||||
Corporate subsidiaries: | ||||||||||||||||||||
Federal | 750 | 1,495 | (943) | |||||||||||||||||
State and local | 956 | 904 | 975 | |||||||||||||||||
Foreign | 58,080 | 44,086 | 32,290 | |||||||||||||||||
Current tax expense | 66,737 | 49,841 | 41,518 | |||||||||||||||||
Deferred tax | (4,009) | (4,188) | 236 | |||||||||||||||||
Income tax expense | $ | 62,728 | $ | 45,653 | $ | 41,754 |
2021 Annual Report |
103
|
Years Ended December 31 | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
UBT statutory rate | $ | 48,659 | 4.0 | % | $ | 36,297 | 4.0 | % | $ | 32,937 | 4.0 | % | ||||||||||||||||||||||||||
Corporate subsidiaries' federal, state, and local | 1,322 | 0.2 | 2,025 | 0.2 | 4,000 | 0.5 | ||||||||||||||||||||||||||||||||
Foreign subsidiaries taxed at different rates | 43,019 | 3.5 | 33,969 | 3.7 | 26,719 | 3.3 | ||||||||||||||||||||||||||||||||
FIN 48 reserve (release) | — | — | (1,886) | (0.2) | 2,765 | 0.3 | ||||||||||||||||||||||||||||||||
UBT business allocation percentage rate change | 23 | — | 8 | — | (79) | — | ||||||||||||||||||||||||||||||||
Deferred tax and payable write-offs | 1,003 | 0.1 | (887) | (0.1) | 314 | — | ||||||||||||||||||||||||||||||||
Foreign outside basis difference | 1,492 | 0.1 | 3 | — | 155 | — | ||||||||||||||||||||||||||||||||
Amended 2017 return | — | — | (221) | — | (3,853) | (0.5) | ||||||||||||||||||||||||||||||||
Effect of ASC 740 adjustments, miscellaneous taxes, and other | 1,799 | 0.1 | 2,654 | 0.3 | 2,305 | 0.3 | ||||||||||||||||||||||||||||||||
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge | (34,589) | (2.8) | (26,309) | (2.9) | (23,509) | (2.8) | ||||||||||||||||||||||||||||||||
Income tax expense and effective tax rate | $ | 62,728 | 5.2 | $ | 45,653 | 5.0 | $ | 41,754 | 5.1 |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance as of beginning of period | $ | 2,838 | $ | 5,706 | $ | 3,893 | ||||||||||||||
Additions for prior year tax positions | — | — | 1,813 | |||||||||||||||||
Reductions for prior year tax positions | — | — | — | |||||||||||||||||
Additions for current year tax positions | — | — | — | |||||||||||||||||
Reductions for current year tax positions | — | — | — | |||||||||||||||||
Reductions related to closed years/settlements with tax authorities | — | (2,868) | — | |||||||||||||||||
Balance as of end of period | $ | 2,838 | $ | 2,838 | $ | 5,706 |
104
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Deferred tax asset: | ||||||||||||||
Differences between book and tax basis: | ||||||||||||||
Benefits from net operating loss carryforwards | $ | 7,833 | $ | 7,112 | ||||||||||
Long-term incentive compensation plans | 24,468 | 22,363 | ||||||||||||
Investment basis differences | 5,523 | 5,256 | ||||||||||||
Depreciation and amortization | 3,942 | 2,065 | ||||||||||||
Lease liability | 5,327 | 5,994 | ||||||||||||
Other, primarily accrued expenses deductible when paid | 4,917 | 4,737 | ||||||||||||
52,010 | 47,527 | |||||||||||||
Less: valuation allowance | (3,828) | (3,025) | ||||||||||||
Deferred tax asset | 48,182 | 44,502 | ||||||||||||
Deferred tax liability: | ||||||||||||||
Differences between book and tax basis: | ||||||||||||||
Intangible assets | 7,622 | 7,933 | ||||||||||||
Investment in foreign subsidiaries | 4,084 | 3,048 | ||||||||||||
Right-of-use asset | 4,490 | 4,975 | ||||||||||||
Other | 2,075 | 1,760 | ||||||||||||
Deferred tax liability | 18,271 | 17,716 | ||||||||||||
Net deferred tax asset | $ | 29,911 | $ | 26,786 |
2021 Annual Report |
105
|
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Institutions | $ | 587,017 | $ | 512,914 | $ | 480,144 | ||||||||||||||
Retail | 2,223,829 | 1,811,948 | 1,619,832 | |||||||||||||||||
Private Wealth Management | 1,126,142 | 882,672 | 904,505 | |||||||||||||||||
Bernstein Research Services | 452,017 | 459,744 | 407,911 | |||||||||||||||||
Other | 56,283 | 56,908 | 163,245 | |||||||||||||||||
Total revenues | 4,445,288 | 3,724,186 | 3,575,637 | |||||||||||||||||
Less: Interest expense | 3,686 | 15,650 | 57,205 | |||||||||||||||||
Net revenues | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 |
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net revenues: | ||||||||||||||||||||
United States | $ | 2,403,870 | $ | 1,959,528 | $ | 1,975,105 | ||||||||||||||
International | 2,037,732 | 1,749,008 | 1,543,327 | |||||||||||||||||
Total | $ | 4,441,602 | $ | 3,708,536 | $ | 3,518,432 | ||||||||||||||
Long-lived assets: | ||||||||||||||||||||
United States | $ | 3,331,572 | $ | 3,285,761 | ||||||||||||||||
International | 45,796 | 53,453 | ||||||||||||||||||
Total | $ | 3,377,368 | $ | 3,339,214 |
106
|
AllianceBernstein |
Years Ended December 31 | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Investment advisory and services fees | $ | 1,644,757 | $ | 1,368,484 | $ | 1,275,677 | ||||||||||||||
Distribution revenues | 637,076 | 516,336 | 441,437 | |||||||||||||||||
Shareholder servicing fees | 85,745 | 79,394 | 75,122 | |||||||||||||||||
Other revenues | 8,364 | 8,314 | 7,303 | |||||||||||||||||
Bernstein Research Services | 2 | 3 | 2 | |||||||||||||||||
$ | 2,375,944 | $ | 1,972,531 | $ | 1,799,541 |
EQH | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Investment advisory and services fees | $ | 133,074 | $ | 115,901 | $ | 109,316 | ||||||||||||||
Other revenues | 675 | 1,330 | 1,013 | |||||||||||||||||
$ | 133,749 | $ | 117,231 | $ | 110,329 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Commissions and distribution payments to financial intermediaries | $ | 4,550 | $ | 3,952 | $ | 3,956 | ||||||||||||||
General and administrative | 2,373 | 2,281 | 2,466 | |||||||||||||||||
Other | 3,953 | 5,463 | 3,644 | |||||||||||||||||
$ | 10,876 | $ | 11,696 | $ | 10,066 | |||||||||||||||
Balance Sheet: | ||||||||||||||||||||
Institutional investment advisory and services fees receivable | $ | 8,607 | $ | 8,343 | ||||||||||||||||
Prepaid expenses | 545 | 404 | ||||||||||||||||||
Other due to EQH and its subsidiaries | (1,534) | (1,280) | ||||||||||||||||||
EQH Facility | (755,000) | (675,000) | ||||||||||||||||||
$ | (747,382) | $ | (667,533) |
2021 Annual Report |
107
|
2021 | 2020 | 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Non-redeemable non-controlling interest | $ | 100 | $ | — | $ | 92 | ||||||||||||||
Redeemable non-controlling interests: | ||||||||||||||||||||
Consolidated company-sponsored investment funds | 5,011 | (4,169) | 29,549 | |||||||||||||||||
Total non-controlling interest in net income (loss) | $ | 5,111 | $ | (4,169) | $ | 29,641 |
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Consolidated company-sponsored investment funds | $ | 421,169 | $ | 102,359 | ||||||||||
Total redeemable non-controlling interest | $ | 421,169 | $ | 102,359 |
108
|
AllianceBernstein |
2021 Annual Report |
109
|
PART III | ||
110
|
AllianceBernstein |
Board Committees
|
||
|
|
|
|
|||||||||||
Executive
Committee |
Audit and Risk
Committee |
Corporate Governance
Committee |
Compensation and
Workplace Practices Committee |
|||||||||||
Joan Lamm-Tennant |
|
|||||||||||||
Seth P. Bernstein | M | M | ||||||||||||
Nella Domenici | M | |||||||||||||
Jeffrey Hurd | ||||||||||||||
Daniel G. Kaye | M | |||||||||||||
Nick Lane | ||||||||||||||
Kristi Matus |
|
|
||||||||||||
Das Narayandas | M | |||||||||||||
Mark Pearson | M | M | M | |||||||||||
Bertram L. Scott | M | |||||||||||||
Charles Stonehill |
|
|||||||||||||
Todd Walthall | M |
|
Chairperson | ||||
M | Member |
2021 Annual Report |
111
|
Board of Directors
|
||
|
|
|
|
|||||||||||||||||
Joan Lamm-Tennant
Chair of the Board, Equitable Holdings
Committees:
Executive (Chair)
Age: 69
Director Since: 2021
|
Seth P. Bernstein
President and Chief Executive Officer, AllianceBernstein
Committees:
Executive
Governance
Age: 60
Director Since: 2017
|
Nella L. Domenici
Board member of Change Healthcare
Committees:
Audit
Age: 61
Director Since: 2020
|
Jeffrey Hurd
Chief Operating Officer, Equitable Holdings
Committees:
None
Age: 55
Director Since: 2019
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
Daniel G. Kaye
Director, Equitable Holdings, Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America
Committees:
Compensation
Age: 67
Director Since: 2017
|
Nick Lane
President, Equitable Financial Life Insurance Company
Committees:
None
Age: 48
Director Since: 2019
|
Kristi Matus
Corporate Chief Financial Officer and Chief Operating Officer, Buckle
Committees:
Governance (Chair)
Compensation (Chair)
Age: 54
Director Since: 2019
|
Das Narayandas
Edsel Bryant Ford Professor of Business Administration, Harvard Business School
Committees:
Governance
Age: 61
Director Since: 2017
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
Mark Pearson
President and Chief Executive Officer, Equitable Holdings
Committees:
Executive
Governance
Compensation
Age: 63
Director Since: 2011
|
Bertram L. Scott
Director, Equitable America and Equitable Holdings
Committees:
Compensation
Age: 70
Director Since: 2020
|
Charles Stonehill
Founding Partner, Green & Blue Advisors
Committees:
Audit (Chair)
Age: 63
Director Since: 2019
|
Todd Walthall
Executive Vice President of Enterprise Growth, UnitedHealth Group
Committees:
Audit
Age: 51
Director Since: 2021
|
112
|
AllianceBernstein |
|
Background
•Ms. Lamm-Tennant was appointed Chair of AB in October 2021.
•She has served as Chair of the Board of EQH, Equitable Financial and Equitable America since October 2021, after having joined these boards in January 2020.
•She also serves on the Executive Committee, the Audit Committee, and the Finance and Risk Committee of EQH.
•Ms. Lamm-Tennant founded Blue Marble Microinsurance and served as its CEO from 2015 to 2020.
•She currently is executive advisor of Brewer Lane Ventures, having joined in 2021; she also serves on the boards of Ambac Financial Group, Hamilton Insurance Group and Element Fleet Financial Corp.
•Previously, Ms. Lamm-Tennant was Adjunct Professor, International Business at The Wharton School of the University of Pennsylvania from 2005 to 2016. Prior to or concurrently with her service at The Wharton School, Ms. Lamm-Tennant held various senior positions in the insurance industry, including with Marsh & McLennan Companies, Guy Carpenter and General Reinsurance Corporation.
Director Qualifications
Ms. Lamm-Tennant brings to the Board significant industry and academic experience, having held global business leadership roles and developed a distinguished career as a professor of finance and economics.
|
|||||||||||||
Joan Lamm-Tennant
Committees: Executive (Chair)
Age: 69
Director Since: 2021
|
||||||||||||||
|
Background
•Mr. Bernstein was appointed President and Chief Executive Officer in April 2017 and began serving in this role on May 1, 2017.
•Serving as Senior Executive Vice President and Head of Investment Management and Research of EQH since April 2018.
•Previously, Mr. Bernstein had a distinguished 32-year career at JPMorgan Chase, most recently as managing director and global head of Managed Solutions and Strategy at J.P. Morgan Asset Management. In this role, Mr. Bernstein was responsible for the management of all discretionary assets within the Private Banking client segment.
•Among other roles, he served as Managing Director and Global Head of Fixed Income and Currency for 10 years, concluding in 2012.
•Mr. Bernstein held the position of Chief Financial Officer at JPMorgan Chase’s Investment Management and Private Banking division.
•Mr. Bernstein is a member of the Management Committee of EQH and the Board of Managers of Haverford College, Pennsylvania.
Director Qualifications
Mr. Bernstein brings to the Board the diverse financial services experience he developed through his extensive service at JPMorgan Chase and more recent career at AB.
|
|||||||||||||
Seth P. Bernstein
Committees: Executive, Governance
Age: 60
Director Since: 2017
|
||||||||||||||
2021 Annual Report |
113
|
|
Background
•Ms. Domenici was appointed a director of AB in January 2020.
•During 2020 and 2021, she served as Chief Financial Officer and member of the Executive Committee at Dataminr, a leading high-growth AI company that is late-stage venture backed. In her senior executive role, Ms. Domenici was responsible for various strategic, operational and administrative functions.
•From 2015 to 2018, she served as Chief Financial Officer and member of the Operating Committee at Bridgewater Associates, a hedge fund with more than $160 billion in AUM.
•Prior thereto, she held various senior managerial, investment banking and strategic positions with firms including Citadel Investment Group, Credit Suisse and The Monitor Consulting Group. In addition, she is a proven entrepreneur, having founded a successful financial consulting firm that advised many family-owned, private equity, venture-backed and real estate companies.
•Ms. Domenici is a dedicated advocate and champion in the areas of education, healthcare and economic development. She co-founded the Excellent Schools of New Mexico, a leading non-profit organization that supports charter schools in underserved communities, and she serves on the board of Regis High School in New York City.
•She also serves on the advisory board of the International Folk-Art Market, which generates economic opportunities for folk artists worldwide, particularly women in developing countries.
•Ms. Domenici is a former member of the Bipartisan Policy Center Behavioral Health Integration Task Force, where she championed initiatives focused on mental illness, and of the board of One World Surgery, which provides access to quality surgical care globally.
Director Qualifications
Ms. Domenici brings to the Board her seasoned business acumen and her extensive global experience in strategic financial management, corporate strategy and operations.
|
|||||||||||||
Nella L. Domenici
Committees: Audit
Age: 61
Director Since: 2020
|
||||||||||||||
|
Background
•Mr. Hurd was appointed a director of AB in April 2019.
•He has served as Chief Operating Officer of EQH, and as a member of the EQH Management Committee, since 2018.
•In this role, Mr. Hurd has strategic oversight for EQH’s Human Resources, Information Technology and Communications departments.
•He also is responsible for EQH’s Transformation Office, which encompasses key functional areas, including operations, procurement and corporate real estate, as well as EQH's Innovation and Design Office, which contemplates new ways or working.
•Mr. Hurd also has served as Chief Operating Officer of Equitable Financial since 2018.
•Prior to joining Equitable, Mr. Hurd served as Executive Vice President and Chief Operating Officer at American International Group, Inc. (“AIG”), where he amassed deep financial services industry experience during his 20-year tenure.
•While at AIG, Mr. Hurd served as Chief Human Resources Officer, Chief Administrative Officer, Deputy General Counsel and Head of Asset Management Restructuring.
Director Qualifications
Mr. Hurd brings to the Board his extensive experience in financial services and strategic insights as a senior executive at EQH and, formerly, at AIG.
|
|||||||||||||
Jeffrey J. Hurd
Committees: None
Age: 55
Director Since: 2019
|
||||||||||||||
114
|
AllianceBernstein |
|
Background
•Mr. Kaye was appointed a director of AB in April 2017.
•He has been a director of EQH since May 2018 and a director of Equitable Financial and Equitable America since September 2015.
•Also, since May 2019, Mr. Kaye has been a director of CME Group, Inc. (NASDAQ: CME), where he serves as Chair of the Audit Committee.
•From January 2013 to May 2014, Mr. Kaye served as interim Chief Financial Officer and Treasurer of HealthEast Care System. He held this post after retiring in 2012 from his career at Ernst & Young LLP (“E&Y”).
•He served for 35 years at E&Y, including 25 years as an audit partner.
•During his tenure at E&Y, Mr. Kaye served as the New England Area Managing Partner and the Midwest Area Managing Partner of Assurance.
•Mr. Kaye is a Certified Public Accountant and a National Association of Corporate Directors Board Leadership Fellow.
Director Qualifications
Mr. Kaye brings to the Board the extensive financial expertise he developed through his career at E&Y and his directorships at CME, EQH and certain of EQH’s subsidiaries.
|
|||||||||||||
Daniel G. Kaye
Committees: Compensation
Age: 67
Director Since: 2017
|
||||||||||||||
|
Background
•Mr. Lane was appointed a director of AB in April 2019.
•He has served as Head of Retirement, Wealth Management & Protection Solutions of EQH, and as a member of the EQH Management Committee, since May 2018.
•Also, since February 2019, Mr. Lane has served as President of Equitable Financial, leading that company’s Retirement, Wealth Management & Protection Solutions businesses and also leading its Marketing and Digital functions.
•Mr. Lane held various leadership roles with AXA and Equitable Financial since joining Equitable Financial (then a subsidiary of AXA) in 2005 as Senior Vice President of the Strategic Initiatives Group.
•He has served as President and CEO of AXA Japan, Senior Executive Director at Equitable Financial with responsibilities across commercial divisions, and Head of AXA Global Strategy overseeing AXA’s five-year strategic plan across 60 countries.
•Prior to joining Equitable Financial, Mr. Lane was a consultant for McKinsey & Company and a Captain in the United States Marine Corps.
Director Qualifications
Mr. Lane brings to the Board the outstanding experience and leadership qualities he has developed in various senior roles at AXA, EQH and various subsidiaries, and as an officer in the United States Marine Corps.
|
|||||||||||||
Nick Lane
Committees: None
Age: 48
Director Since: 2019
|
||||||||||||||
2021 Annual Report |
115
|
|
Background
•Ms. Matus was appointed a director of AB in July 2019.
•She has been a director and member of various board committees at EQH and Equitable America since March 2019 and at Equitable Financial since September 2015.
•Ms. Matus joined Buckle, a tech-enabled financial services company, as Chief Financial Officer and Chief Operating Officer in October 2020 and has served as director and Audit Committee Chair of Cerence, Inc., a leading provider of automotive technology, since October 2019.
•Formerly, Ms. Matus had been Chair of the Compensation Committee at Tru Optik Data Corp., a digital media intelligence company, from September 2016 to October 2020, an executive advisor to Thomas H. Lee Partners L.P., a private equity firm, from October 2017 to October 2020, and a director and the Audit Committee Chair at Nextech Systems, a provider of healthcare technology solutions, from June 2019 to October 2020.
•Ms. Matus served as Executive Vice President and Chief Financial & Administrative Officer at athenahealth, Inc. (“athena”) from July 2014 to May 2016.
•Before joining athena, Ms. Matus served as Executive Vice President of Governance Services at Aetna, Inc. from February 2012 to July 2013.
•Previously, she held several leadership roles at United Services Automobile Association.
Director Qualifications
Ms. Matus brings to the Board her extensive experience in finance, risk management, compliance and audit functions, investor relations, human capital, real estate and IT, gained through her numerous leadership roles at technology, healthcare and insurance companies.
|
|||||||||||||
Kristi A. Matus
Committees: Governance (Chair), Compensation (Chair)
Age: 54
Director Since: 2019
|
||||||||||||||
|
Background
•Mr. Narayandas was appointed a director of AB in November 2017.
•He is the Edsel Bryant Ford Professor of Business Administration at Harvard Business School (“HBS”), where he has been a faculty member since 1994.
•Mr. Narayandas also currently serves as the Senior Associate Dean and Chairman of Harvard Business School Publishing, and as the Senior Associate Dean of HBS External Relations.
•He previously served as the senior associate dean of HBS Executive Education, and as chair of the HBS Executive Education Advanced Management Program and the Program for Leadership Development, as well as course head of the required first-year marketing course in the MBA program.
•Mr. Narayandas has received the award for teaching excellence from the graduating HBS MBA class on several occasions. Other awards he has received include the Robert F. Greenhill Award for Outstanding Service to the HBS Community, the Charles M. Williams Award for Excellence in Teaching and the Apgar Award for Innovation in Teaching.
•His scholarship has focused on market-facing issues in traditional business-to-business marketing and professional service firms, including client management strategies, delivering service excellence, product-line management and channel design.
Director Qualifications
Mr. Narayandas brings to the Board his wealth of experience at the highest level of academia in the U.S.
|
|||||||||||||
Das Narayandas
Committees: Governance
Age: 61
Director Since: 2017
|
||||||||||||||
116
|
AllianceBernstein |
|
Background
•Mr. Pearson was appointed a director of AB in February 2011.
•He has served as director and as President and CEO of EQH since May 2018.
•Mr. Pearson also serves as a member of EQH’s Management Committee.
•Additionally, Mr. Pearson serves as CEO of Equitable Financial and Equitable America, and he has been a director of both companies since 2011.
•Mr. Pearson joined AXA in 1995 when AXA acquired National Mutual Funds Management Limited (presently AXA Asia Pacific Holdings Limited) and was appointed Regional Chief Executive of AXA Asia Life in 2001.
•From 2008 to 2011, Mr. Pearson was President and Chief Executive Officer of AXA Japan Holding Co., Ltd. (“AXA Japan”).
•Prior to joining AXA, Mr. Pearson spent approximately 20 years in the insurance sector, holding several senior management positions at Hill Samuel, Schroders, National Mutual Holdings and Friends Provident.
•Mr. Pearson is a Fellow of the Chartered Public Association of Certified Public Accountants.
Director Qualifications
Mr. Pearson brings to the Board the diverse financial services experience he has developed through his service as an executive, including as Chief Executive Officer, with EQH, AXA Japan and other AXA affiliates.
|
|||||||||||||
Mark Pearson
Committees: Executive, Governance, Compensation
Age: 63
Director Since: 2011
|
||||||||||||||
|
Background
•Mr. Scott was appointed a director of AB in September 2020.
•He has been a director and member of various board committees of EQH, Equitable America and Equitable Financial since March 2019.
•He had previously served as director of Equitable America and Equitable Financial from May 2012 to May 2018.
•Mr. Scott currently is a member of the Board of the American Heart Association, having served as its chairman from 2019 to 2021.
•Mr. Scott retired in 2019 as Senior Vice President of Population Health Management of Novant Health, Inc. after having served since February 2015.
•From October 2012 to November 2015, Mr. Scott served as President and Chief Executive Officer at Affinity Health Plan.
•Prior to joining Affinity, he served as President, U.S. Commercial of CIGNA Corporation from June 2010 to December 2011.
•Prior to joining CIGNA, Mr. Scott was Executive Vice President and Chief Institutional Development & Sales Officer at TIAA-CREF; he had joined TIAA-CREF in 2000.
•Mr. Scott is a director and Audit Committee Chair at Becton, Dickinson and Company (NYSE: BDX), a director and Audit Committee Chair at Lowe's Companies, Inc. (NYSE: LOW) and, since January 2021, a director of Point32Health.
Director Qualifications
Mr. Scott brings to the Board his audit committee financial expertise and strong strategic and operational experience developed through a variety of executive roles at insurance and financial services companies as well as his service on the boards of other U.S. public companies.
|
|||||||||||||
Bertram L. Scott
Committees: Compensation
Age: 70
Director Since: 2020
|
||||||||||||||
2021 Annual Report |
117
|
|
Background
•Mr. Stonehill was appointed a director of AB in April 2019.
•He has been a director and member of various board committees at EQH and Equitable America since March 2019, and at Equitable Financial since November 2017.
•Mr. Stonehill has served as a member of the supervisory board of Deutsche Boerse AG, a capital market infrastructure provider, since 2018. In January 2021, Mr. Stonehill joined the board of Constellation Acquisition Corp. I, a blank check company that targets disruptive innovation across various segments of the global economy.
•In addition, Mr. Stonehill is the Founding Partner of Green & Blue Advisors LLC, having started this advisory firm that provides financial advice to clean-tech and other environmentally-minded companies in 2011.
•He formerly was a director of Play Magnus AS, a chess app company, from 2016 to 2021, and non-executive vice chairman of Julius Baer Group Ltd., a global private banking company based in Switzerland, from 2009 to 2021.
•Mr. Stonehill has over 30 years' experience in energy markets, investment banking and capital markets, including leadership positions at Lazard Freres & Co. LLC, Credit Suisse and Morgan Stanley & Co.
•He also served as Chief Financial Officer at Better Place Inc., an electric vehicle start-up, from 2009 to 2011, where he oversaw global financial strategy and capital raising.
Director Qualifications
Mr. Stonehill brings to the Board his extensive expertise and distinguished track record in the financial services industry and over 30 years' experience in energy markets, investment banking and capital markets.
|
|||||||||||||
Charles G.T. Stonehill
Committees: Audit (Chair)
Age: 63
Director Since: 2019
Skills:
|
||||||||||||||
|
Background
•Mr. Walthall was appointed a director of AB in September 2021.
•He serves as Executive President of Enterprise Growth for UnitedHealth Group, a diversified healthcare company.
•Previously, he served as Executive Vice President and Chief Operating Officer at Blue Shield of California.
•Prior to Blue Shield, he served as Vice President and General Manager of Digital Service Integration at American Express. Before joining AMEX, Mr. Walthall held numerous senior roles with USAA Insurance, having contributed to the development of the industry's first mobile check-deposit service.
•He was the recipient of the 2016 Multicultural Leaders of California award from the National Diversity Council, and in 2020 was named one of the Most Influential Black Executives in Corporate America by Savoy Magazine.
Director Qualifications
Mr. Walthall brings over two decades of leadership experience with growth strategy, operations, product development, and customer service and retention programs through his extensive experience in numerous leadership roles throughout his career.
|
|||||||||||||
Todd Walthall
Committees: Audit
Age: 51
Director Since: 2021
|
||||||||||||||
118
|
AllianceBernstein |
2021 Annual Report |
119
|
|
Responsibilities:
•Exercises all of the powers and authority of the Board (with limited exceptions) when the Board is not in session, or when it is impractical to assemble the full Board.
•Typically, determines quarterly unitholder distributions, as applicable.
|
||||||||||
Executive Committee
Committee Members:
Joan Lamm-Tennant (Chair)
Seth P. Bernstein
Mark Pearson
Meetings in 2021: 4
|
|||||||||||
|
Responsibilities:
•Assist the Board in its oversight of:
•the integrity of the financial statements of the Partnerships;
•the effectiveness of the Partnerships' internal control over financial reporting and the Partnerships' risk management framework and risk mitigation processes;
•the Partnerships’ status and system of compliance with legal and regulatory requirements and business conduct;
•the independent registered public accounting firm’s qualification and independence; and
•the performance of the Partnerships’ internal audit function.
•Oversee the appointment, retention, compensation, evaluation and termination of the Partnerships’ independent registered public accounting firm.
•Encourages continuous improvement of, and fosters adherence to, the Partnerships’ policies, procedures and practices at all levels.
•Provides an open avenue of communication among the independent registered public accounting firm, senior management, the Internal Audit Department, the Chief Compliance Officer, the Chief Risk Officer and the Board.
|
||||||||||
Audit and Risk Committee
Committee Members:
Charles Stonehill (Chair)
Nella Domenici Todd Walthall
Meetings in 2021: 7
|
|||||||||||
120
|
AllianceBernstein |
|
Responsibilities:
•Assists the Board and the sole stockholder of the General Partner in:
•identifying and evaluating qualified individuals to become Board members; and
•determining the composition of the Board and its committees.
•Assists the Board in:
•developing and monitoring a process to assess Board effectiveness;
•developing and implementing our Corporate Governance Guidelines; and
•reviewing our policies and programs that relate to matters of corporate responsibility of the General Partner and the Partnerships.
|
||||||||||
Governance Committee
Committee Members:
Kristi Matus (Chair)
Seth P. Bernstein
Das Narayandas
Mark Pearson
Meetings in 2021: 1 regular mtg. and 1 special mtg.
|
|||||||||||
|
For a discussion of the Compensation Committee's responsibilities, please see “Compensation Discussion and Analysis - Compensation Committee; Process for Determining Executive Compensation” in Item 11.
|
||||||||||
Compensation and Workplace Practices Committee
Committee Members:
Kristi Matus (Chair)
Daniel G. Kaye
Mark Pearson
Bertram L. Scott
Meetings in 2021: 5 regular mtgs. and 1 special mtg.
|
|||||||||||
2021 Annual Report |
121
|
Board of Directors | ||||||||
The Board, together with the Audit Committee, has oversight for our company’s risk management framework, which includes investment risk, credit and counterparty risk, and operational risk (includes legal/regulatory risk, cyber security risk and climate risk), and is responsible for helping to ensure that these risks are managed in a sound manner.
|
||||||||
q | ||||||||
Audit Committee | ||||||||
The Board has delegated to the Audit Committee, which consists entirely of independent directors, the responsibility to consider our company’s policies and practices with respect to investment, credit and counterparty, and operational risk assessment and risk management, including discussing with management the major financial, operational and reputational risk exposures and the steps taken to monitor and control such exposures.
|
||||||||
p | ||||||||||||||||||||
Risk Management Team | Chief Risk Officer | |||||||||||||||||||
Members of the company's risk management team (including our Chief Information Security Officer), who are responsible for identifying, managing and controlling the array of risks inherent in our company’s business and operations, make quarterly reports to the Audit Committee, which address investment, credit and counterparty, and operational risk identification, assessment and monitoring.
|
u |
The Chief Risk Officer makes quarterly presentations to the Audit Committee and has reporting lines to the CEO and the Audit Committee.
|
||||||||||||||||||
122
|
AllianceBernstein |
2021 Annual Report |
123
|
124
|
AllianceBernstein |
|
|
|
|
|
||||||||||
Seth P. Bernstein
President and Chief Executive Officer (“CEO“)
|
Kate C. Burke
Chief Operating
Officer (“COO“) and Head of Private Wealth
|
Laurence E. Cranch
Chief Legal Officer
|
Karl Sprules
Head of Global Technology & Operations
|
Ali Dibadj
CFO and Head of Strategy
|
2021 Annual Report |
125
|
AB U.S. retail fixed income mutual funds that placed in the top quartile (3-yrs):
•AB Intermediate Diversified Muni
•AB High Income Municipal
•AB Intermediate New York Municipal
•AB Intermediate California Municipal
•AB Municipal Bond Inflation Strategies
•AB Municipal Income National
•AB Municipal Income California Strategies
|
AB Non‑U.S. fixed income funds that placed in the top quartile (3-yrs):
•AB European Income
|
AB U.S. retail equity mutual funds that placed in the top quartile (3-yrs):
•AB Large Cap Growth
•AB Discovery Growth
•AB Small Cap Growth
•AB Sustainable Global Thematic
|
AB Non‑U.S. equity funds that placed in the top quartile (3-yrs):
•AB International Healthcare
•AB International Technology
•AB Sustainable Global Thematic
|
||||||||
126
|
AllianceBernstein |
2021 Annual Report |
127
|
Deliver superior investment solutions to clients | ||||||||||||||
Develop, commercialize
and scale our suite
of services
Launched
9 Products in Private Wealth Channel, including: US Commercial Real Estate Private Debt Fund, Real Estate Equity Plus, Global Disruptors, Relative Value, Sustainable Intermediate Duration and Sustainable US Thematic Strategies
$21.5 billion
Institutional pipeline, with >$60M in annualized fee base
$31.5 billion
ESG Portfolios with Purpose +91% year-over-year
$10 billion
Committed by Equitable Financial to expand AB’s Private Alternative and Private Placement Platforms
|
||||||||||||||
Fixed Income and Equity Performance | ||||||||||||||
Maintain strong incremental margins(1)
|
||||||||||||||
AB Adjusted Operating Margin | ||||||||||||||
|
||||||||||||||
Total Unitholder Return
(2017-2021; includes dividend reinvestment)
|
||||||||||||||
Portfolios with Purpose:
New Sustainable launches:
Sustainable Income, Sustainable US Thematic Credit, Sustainable Climate Solutions, Global Low Carbon, Sustainable EM Debt
|
||||||||||||||
|
||||||||||||||
Gross Sales | Active Equity | Organic Growth | Beneficial Pipeline Mix | ||||||||
AB’s Retail channel achieved a record of
|
Active Equity organic growth | Net Flows scaled, generated an active organic growth rate of | Active Equities and Alternatives represented over | ||||||||
$100B | 10.1% | 4.3% | 85% | ||||||||
in gross sales in 2021, +27% year-over-year | in 2021 | in 2021 | of institutional pipeline fee base at year-end |
128
|
AllianceBernstein |
Net Revenues | $ | 4,441,602 | |||
Adjustments (see above)
|
(832,066) | ||||
Adjusted Net Revenues | $ | 3,609,536 | |||
Employee Compensation & Benefits Expense | $ | 1,716,013 | |||
Adjustments (see above)
|
(39,011) | ||||
Adjusted Employee Compensation & Benefits Expense | $ | 1,677,002 | |||
Adjusted Compensation Ratio | 46.5 | % |
2021 Annual Report |
129
|
130
|
AllianceBernstein |
Kate C. Burke
Chief Operating Officer and Head of Private Wealth
Summary of Achievements: As COO, Ms. Burke implemented performance scorecards, oversaw our return to office worldwide, and drove momentum with a critical set of tasks essential to completing the transition to Nashville and opening our new headquarters. As the Head of Private Wealth ("PW"), Ms. Burke established a leadership team, determined a client segmentation approach and product management structure, and developed a strategy for accelerating organic growth and the investments needed to accomplish this objective.
|
Individual Achievements
Financial
•Led the firm’s compensation process. The process resulted in the firm’s compensation ratio declining 140 basis points year-over-year to 46.5%, helping the firm reach its adjusted operating margin of 33.6%.
•Accelerated PW's organic growth to 3%, generating net inflows in each quarter of 2021 and five of the last six quarters overall.
Strategic
•Advanced AB's operating model by increasing transparency and accountability around critical business and financial metrics through implementation of scorecards for business unit heads, quarterly business reviews and the strategic initiative process. These management tools and processes enabled our senior leadership to manage the overall business more holistically and effectively. Under Ms. Burke’s leadership, scorecards for business unit heads were utilized for the first time across AllianceBernstein, enhancing collaboration among senior leaders to support enterprise initiatives around expanding product, distribution, and infrastructure capabilities and advancing AB's talent and cultural initiatives.
•Oversaw the evolution of PW’s investment platform with a focus on expanding the lineup of differentiated core strategies, alternatives offerings, and “purpose-driven” (ESG) strategies. Complemented our high-quality active management strategies by introducing a passive tax-loss-harvesting separately managed account and ran the most aggressive product roll-out in PW history: 10 product launches across core and alternative strategies. PW's alternatives AUM grew to $11 billion, up 18% Y/Y. PW's ESG AUM grew to $6.9 billion, up 55.5% Y/Y in 2021.
Organizational
•Continued to hire, onboard, and train 259 new employees in Nashville, despite ongoing challenges from the pandemic, which resulted in 974 employees in Nashville at year-end, and enabled the firm to maintain its pace to achieve 1,250 employees there by 2024.
•Oversaw AB's response to the pandemic and our firm's return-to-office approach, which included marshaling resources across the firm to execute a coordinated global response, enabling the firm to seamlessly meet fiduciary obligations and provide exceptional client service and investment advice, while also prioritizing the health and well-being of AB's 4,085 employees.
Culture
•Led efforts to reimagine the workplace and ensure the firm’s culture remained intact while evolving into a hybrid work environment.
•Fostered stronger AB employee engagement while also delivering concrete actions that resulted in a more diverse workforce, including enhancing AB's diverse talent development and retention efforts.
|
||||||||||
2021 Compensation
|
|||||||||||
|
|||||||||||
2021 Annual Report |
131
|
132
|
AllianceBernstein |
Karl Sprules
Head of Global Technology & Operations
Summary of Achievements: As Global Head of Technology & Operations (GTO), Mr. Sprules led the opening of our Nashville office and chaired our Pandemic Response Team. He rigorously managed Technology and Operations expenses and delivered on a broad portfolio of strategic firm initiatives.
|
Individual Achievements
Financial
•Managed the Technology & Operations expenses down to less than 11% of revenue.
Strategic
•Led AB’s Technology, Operations, Security, and Real Estate teams globally and managed the infrastructure expense ratio down to its lowest level in 10 years while supporting business development and growth. Mr. Sprules completed the reorganization and consolidation of the GTO leadership team and advised the Board, other NEOs, and the Operating Committee on the use of technology to gain competitive business advantage.
•Continued to increase our operational efficiency by creating programs that drove down error rates, reduced onboarding risk, automated operational work and increased service levels.
•Advised other NEOs and the Operating Committee on the technical and operational feasibility of our strategic growth initiatives, and provided staffing, infrastructure and oversight for new initiatives throughout the year.
•Pivoted the focus of our security infrastructure from defense to defense and response, providing thought leadership on security infrastructure architecture, developing maturity models for business unit assessment of response preparedness and reporting to the Board and other NEOs on our security posture.
Organizational
•Led the team responsible for opening our new corporate headquarters in Nashville. This brought together multidisciplinary teams of thought leaders in design, construction, redundance, security, technology and collaboration to create a state-of-the-art work environment.
•Chaired the AB COVID-19 Pandemic Repose Team. This cross-functional leadership team focused on maintaining firm-wide operating efficiency while keeping our employees safe. Mr. Sprules led the response to virus variant surges and advised business unit heads on the impact of extended work from home.
Culture
•Produced the Nashville Beat, a recurring Town Hall program designed to engage new and tenured Nashville staff as we transitioned to a hybrid work environment.
•Co-lead H-Labs, a joint venture between AB and Equitable focused on accelerating innovation and collaboration.
|
||||||||||
2021 Compensation
|
|||||||||||
|
|||||||||||
2021 Annual Report |
133
|
Laurence E. Cranch
Chief Legal Officer
Summary of Achievements: As CLO, Mr. Cranch was responsible for managing the legal and compliance department, overseeing all legal affairs for the firm. Mr. Cranch successfully planned and implemented the transition of the leadership of this department to the firm’s General Counsel, Mark Manley, as a result of his retirement at the end of 2021.
|
Individual Achievements
Financial
•Continued to successfully control outside counsel expenses with respect to ongoing and routine legal matters.
Strategic
•Successfully completed the transition of leadership of the Legal and Compliance Department.
•Ensured no regulatory examination resulted in a material adverse finding or enforcement proceeding.
•Received favorable feedback from AB business leaders relating to the quality of service of the Legal and Compliance department.
•Ensured the firm remained free of material litigation, reflecting our pragmatic and aggressive program to avoid situations that are likely to produce disputes and, where disputes do arise, resolve them on favorable terms.
Organizational
•Completed the relocation of nearly all of the New York Legal and Compliance department to Nashville, including the retention of the employees who relocated, and the recruitment of qualified individuals to fill remaining senior positions in Nashville.
•Implemented compliance solutions in response to new compliance requirements that became effective in 2021.
Culture
•Stressed the importance of our fiduciary culture through compliance and workplace practices training.
|
||||||||||
2021 Compensation
|
|||||||||||
|
|||||||||||
134
|
AllianceBernstein |
2021 Annual Report |
135
|
Eaton Vance Corp. | Franklin Templeton Investments | Goldman Sachs Asset Management | ||||||
Invesco Ltd. | JP Morgan Asset Management | MFS Investment Management | ||||||
Morgan Stanley Invest. Manage. | Neuberger Berman Group | Nuveen Investments / TIAA | ||||||
PIMCO LLC | Prudential Investments | T. Rowe Price, Inc. | ||||||
The Vanguard Group, Inc. | ||||||||
136
|
AllianceBernstein |
2021 Annual Report |
137
|
138
|
AllianceBernstein |
2021 Annual Report |
139
|
140
|
AllianceBernstein |
2021 Annual Report |
141
|
Seth Bernstein | Median Employee | |||||||
Base salary ($) | 500,000 | 125,000 | ||||||
Cash bonus ($) | 5,575,000 | 30,000 | ||||||
Stock awards ($)(1)
|
6,075,000 | — | ||||||
All other compensation ($)(2)
|
142,813 | 1,550 | ||||||
Total ($) | 12,292,813 | 156,550 | ||||||
2021 CEO Pay Ratio
|
79:1 |
Kristi Matus (Chair) | Daniel Kaye | ||||
Mark Pearson | Bertram Scott |
142
|
AllianceBernstein |
Summary Compensation Table for 2021 | ||
Name and Principal Position | Year |
Salary
($) |
Bonus
($) |
Stock Awards(1)(2)
($)
|
Option Awards(3) ($)
|
All Other
Compensation ($) |
Total
($) |
||||||||||||||||
Seth P. Bernstein(4)(5)
|
2021 | 500,000 | 5,575,000 | 6,075,000 | — | 142,813 | 12,292,813 | ||||||||||||||||
President and CEO | 2020 | 500,000 | 4,015,000 | 4,585,051 | 250,003 | 52,509 | 9,402,563 | ||||||||||||||||
2019 | 500,000 | 3,850,000 | 4,750,026 | 250,004 | 94,859 | 9,444,889 | |||||||||||||||||
Kate C. Burke(6)
|
2021 | 400,000 | 2,275,000 | 1,925,000 | — | 15,455 | 4,615,455 | ||||||||||||||||
Chief Operating Officer and | 2020 | 300,000 | 1,665,000 | 1,285,000 | — | 19,517 | 3,269,517 | ||||||||||||||||
Head of Private Wealth | 2019 | 300,000 | 1,415,000 | 1,035,000 | — | 60,716 | 2,810,716 | ||||||||||||||||
Ali Dibadj(6)(7)
|
2021 | 400,000 | 2,025,000 | 1,675,000 | — | 15,130 | 4,115,130 | ||||||||||||||||
CFO & Head of Strategy | 2020 | 400,000 | 945,000 | 665,000 | 14,880 | 2,024,880 | |||||||||||||||||
Karl Sprules(8)
|
2021 | 400,000 | 1,725,000 | 1,275,000 | — | 42,040 | 3,442,040 | ||||||||||||||||
Head of Global Technology and Operations | |||||||||||||||||||||||
Laurence E. Cranch(9)
|
2021 | 400,000 | 1,025,000 | 575,000 | — | 18,208 | 2,018,208 | ||||||||||||||||
Chief Legal Officer | 2020 | 400,000 | 940,000 | 660,000 | — | 17,958 | 2,017,958 | ||||||||||||||||
2019 | 400,000 | 940,000 | 660,000 | — | 17,708 | 2,017,708 | |||||||||||||||||
John C. Weisenseel(10)
|
2021 | 288,462 | — | — | — | 338,719 | 627,181 | ||||||||||||||||
Former CFO | 2020 | 375,000 | 1,147,500 | 842,500 | — | 16,824 | 2,381,824 | ||||||||||||||||
2019 | 375,000 | 1,147,500 | 842,500 | — | 15,677 | 2,380,677 |
2021 Annual Report |
143
|
Name |
Personal
Use of Car and Driver ($) |
Contributions
to Profit Sharing Plan ($) |
Life
Insurance Premiums ($) |
Financial Planning Assistance ($) |
Other(2)
($)
|
|||||||||||||||
Seth P. Bernstein | 124,725 |
(1)
|
14,500 | 3,564 | — | 24 | ||||||||||||||
Kate C. Burke | — | 14,500 | 955 | — | — | |||||||||||||||
Ali Dibadj | — | 14,500 | 630 | — | — | |||||||||||||||
Karl Sprules | — | 14,500 | 2,610 | 24,930 | ||||||||||||||||
Laurence E. Cranch | — | 14,500 | 3,708 | — | — | |||||||||||||||
John C. Weisenseel | — | — | 1,881 | — | 336,838 |
Name | Grant Date |
All Other
Stock Awards: Number of Shares of Stock or Units (#) |
Grant Date
Fair Value
of Stock
Awards(1)
($)
|
||||||||
Seth P. Bernstein(2)(3)
|
12/10/2021 | 102,572 | 5,225,000 | ||||||||
2/17/2021 | 12,200 | 340,000 | |||||||||
2/17/2021 | 16,357 | 510,000 | |||||||||
Kate C. Burke(2)(3)
|
12/10/2021 | 35,827 | 1,825,000 | ||||||||
2/17/2021 | 1,436 | 40,000 | |||||||||
2/17/2021 | 1,925 | 60,000 | |||||||||
Ali Dibadj(2)(3)
|
12/10/2021 | 30,919 | 1,575,000 | ||||||||
2/17/2021 | 1,436 | 40,000 | |||||||||
2/17/2021 | 1,925 | 60,000 | |||||||||
Karl Sprules(2)
|
12/10/2021 | 25,030 | 1,275,000 | ||||||||
Laurence E. Cranch(2)
|
12/10/2021 | 11,288 | 575,000 | ||||||||
John C. Weisenseel(2)
|
— | — | — |
144
|
AllianceBernstein |
Option Awards | AB Holding Unit and/or EQH Awards | ||||||||||||||||||||||
Name |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
Option
Exercise Price ($) |
Option
Expiration Date |
Number of
Shares or Units of Stock That Have Not Vested (#) |
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested(11)
($)
|
|||||||||||||||||
Seth P. Bernstein(1)(2)(3)(5)
|
43,630 | 21,816 | $ | 18.74 | 2/14/2029 | 299,207 | 14,613,265 | ||||||||||||||||
19,069 | 38,140 | 23.18 | 2/26/2030 | 12,200 | 400,038 | ||||||||||||||||||
16,357 | 536,346 | ||||||||||||||||||||||
Kate C. Burke(4)(5)(6)
|
— | — | — | — | 239,774 | 11,710,573 | |||||||||||||||||
1,436 | 47,086 | ||||||||||||||||||||||
1,925 | 63,121 | ||||||||||||||||||||||
Ali Dibadj(4)(5)(7)
|
— | — | — | — | 46,456 | 2,268,916 | |||||||||||||||||
1,436 | 47,086 | ||||||||||||||||||||||
1,925 | 63,121 | ||||||||||||||||||||||
Karl Sprules(8)
|
— | — | — | — | 228,117 | 11,141,251 | |||||||||||||||||
Laurence E. Cranch(9)
|
— | — | — | — | 44,369 | 2,166,967 | |||||||||||||||||
John C. Weisenseel(10)
|
— | — | — | — | 42,228 | 2,062,429 |
2021 Annual Report |
145
|
AB Holding Option Awards | AB Holding Unit Awards | ||||||||||||||||
Name |
Number of AB Holding Units Acquired on Exercise
(#) |
Value Realized
on Exercise ($) |
Number of AB
Holding Units Acquired on Vesting (#) |
Value Realized
on Vesting ($) |
|||||||||||||
Seth P. Bernstein | — | — | 143,294 | 6,875,884 | |||||||||||||
Kate C. Burke | — | — | 27,237 | 1,360,508 | |||||||||||||
Ali Dibadj | — | — | 5,179 | 258,697 | |||||||||||||
Karl Sprules | — | — | 30,078 | 1,502,400 | |||||||||||||
Laurence E. Cranch | — | — | 145,244 | 7,119,978 | |||||||||||||
John C. Weisenseel | — | — | 142,911 | 7,096,490 |
146
|
AllianceBernstein |
Name and Trigger Event |
Cash
Payments(1)
($)
|
Acceleration of
Restricted
AB Holding Unit
Awards(2)
($)
|
Other
Benefits(3)
($)
|
||||||||
Seth P. Bernstein | |||||||||||
Change in control | — | 14,613,265 | — | ||||||||
Termination by Mr. Bernstein for good reason(4)
|
3,500,000 | 14,613,265 | 18,404 | ||||||||
Termination of Mr. Bernstein's employment by AB other than for Cause or due to Death or Disability (including 2017 Award)(4)(5)(6)
|
5,250,000 | 14,613,265 | 18,404 | ||||||||
Change in control + termination by Mr. Bernstein for good reason or termination of Mr. Bernstein's employment without cause(4)
|
7,000,000 | 14,613,265 | 18,404 | ||||||||
Resignation (complies with applicable agreements and restrictive covenants) under ICAP(2)
|
— | 14,613,265 | — | ||||||||
Death or disability(7)
|
— | 14,613,265 | 18,404 | ||||||||
Kate C. Burke | |||||||||||
Change in control | — | 11,710,573 | — | ||||||||
Change in control + employment terminated by AB other than for cause, termination by Ms. Burke for good reason, or termination due to death or disability | 5,350,000 | 11,710,573 | — | ||||||||
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP; excludes 2018 RSU award)(2)
|
— | 4,296,514 | — | ||||||||
Termination by AB without cause; death or disability (2018 RSU award)(8)
|
— | 3,203,337 | — | ||||||||
Ali Dibadj | |||||||||||
Change in control | — | 2,268,916 | — | ||||||||
Change in control + employment terminated by AB other than for cause, termination by Mr. Dibadj for good reason, or termination due to death or disability | 4,850,000 | 2,268,916 | — | ||||||||
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP(2)
|
— | 2,268,916 | — | ||||||||
Karl Sprules | |||||||||||
Change in control | — | 11,141,251 | — | ||||||||
Change in control + employment terminated by AB other than for cause, termination by Mr. Sprules for good reason, or termination due to death or disability | 4,250,000 | 11,141,251 | — | ||||||||
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP(2)
|
— | 3,727,192 | — | ||||||||
Termination by AB without cause; death or disability (2018 RSU award)(8)
|
— | 3,203,337 | — | ||||||||
Laurence E. Cranch(9)
|
|||||||||||
Retirement | 200,000 | 5,937,430 | — | ||||||||
John C. Weisenseel(9)
|
|||||||||||
Retirement | 93,750 | 5,531,911 | — |
2021 Annual Report |
147
|
Reason for Employment Termination |
Acceleration of EQH Option
and Share Awards ($) |
||||
Seth P. Bernstein | |||||
Death(1)
|
7,030,083 | ||||
Disability(1)
|
7,030,083 | ||||
Involuntary termination (no change in control)(2)
|
1,322,245 | ||||
Change in control (without termination of employment)(3)
|
7,222,006 | ||||
Involuntary termination of employment or termination by
Mr. Bernstein for good reason (no change in control)(3)
|
7,222,006 | ||||
Kate C. Burke | |||||
Death(1)
|
112,388 | ||||
Disability(1)
|
112,388 | ||||
Involuntary termination (no change in control) | — | ||||
Change in control (without termination of employment)(3)
|
48,022 | ||||
Involuntary termination of employment or termination by
Ms. Burke for good reason (no change in control)(3)
|
— | ||||
Ali Dibadj | |||||
Death(1)
|
112,388 | ||||
Disability(1)
|
112,388 | ||||
Involuntary termination (no change in control) | — | ||||
Change in control (without termination of employment)(3)
|
48,022 | ||||
Involuntary termination of employment or termination by
Mr. Dibadj for good reason (no change in control)(3)
|
— |
148
|
AllianceBernstein |
Name |
Fees Earned or Paid in Cash
($) |
Stock
Awards(1)(2)
($)
|
Total
($) |
||||||||
Joan Lamm-Tennant(3)
|
27,011 | 99,200 | 126,211 | ||||||||
Nella Domenici | 100,000 | 170,000 | 270,000 | ||||||||
Daniel Kaye | 95,000 | 170,000 | 265,000 | ||||||||
Kristi Matus | 122,750 | 170,000 | 292,750 | ||||||||
Das Narayandas | 92,000 | 170,000 | 262,000 | ||||||||
Bertram Scott | 95,000 | 170,000 | 265,000 | ||||||||
Charles Stonehill | 125,000 | 170,000 | 295,000 | ||||||||
Todd Walthall(4)
|
28,444 | 112,200 | 140,644 | ||||||||
Ramon de Oliveira(5)
|
110,750 | 170,000 | 280,750 | ||||||||
Paul Audet(6)
|
74,557 | 170,000 | 244,557 |
2021 Annual Report |
149
|
150
|
AllianceBernstein |
Equity Compensation Plan Information
|
||
Plan Category |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted average
exercise price of outstanding options, warrants and rights |
Number of
securities
remaining
available
for future
issuance(1)
|
|||||||||||
Equity compensation plans approved by security holders | 5,774 | $ | 20.12 | 31,890,916 | ||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||
Total | 5,774 | $ | 20.12 | 31,890,916 |
Name and Address of Beneficial Owner |
Amount and Nature of
Beneficial Ownership Reported on Schedule |
Percent of
Class |
||||||||||||
Equitable Holdings(1)
1290 Avenue of the Americas
New York, NY 10104
|
170,121,745 |
(1)
|
62.4 |
(1)
|
2021 Annual Report |
151
|
Name of Beneficial Owner |
Number of AB
Holding Units and Nature of Beneficial Ownership |
Percent of Class | ||||||
Joan Lamm-Tennant(1)
|
1,806 | * | ||||||
Seth P. Bernstein(1)(2)
|
568,491 | * | ||||||
Nella L. Domenici | 13,438 | * | ||||||
Jeffrey J. Hurd(1)
|
— | * | ||||||
Daniel G. Kaye(1)
|
30,283 | * | ||||||
Nick Lane(1)
|
— | * | ||||||
Kristi A. Matus(1)
|
15,844 | * | ||||||
Das Narayandas | 26,249 | * | ||||||
Mark Pearson(1)
|
— | * | ||||||
Bertram L. Scott(1)
|
8,060 | * | ||||||
Charles G.T. Stonehill(1)
|
16,904 | * | ||||||
Todd Walthall | 2,208 | * | ||||||
Kate C. Burke(1)(3)
|
270,142 | * | ||||||
Ali Dibadj(1)(4)
|
151,848 | * | ||||||
Karl Sprules(1)(5)
|
263,027 | * | ||||||
Laurence E. Cranch(1)(6)
|
203,403 | * | ||||||
All directors and executive officers as a group (16 persons)(7)
|
1,571,703 | 1.6% |
152
|
AllianceBernstein |
EQH Common Stock
|
||
Name of Beneficial Owner |
Number of Shares and
Nature of Beneficial Ownership |
Percent of Class | ||||||
Joan Lamm-Tennant | 15,679 | * | ||||||
Seth P. Bernstein(1)
|
173,639 | * | ||||||
Nella L. Domenici | — | * | ||||||
Jeffrey J. Hurd(2)
|
308,322 | * | ||||||
Daniel G. Kaye | 46,359 | * | ||||||
Nick Lane(3)
|
311,090 | * | ||||||
Kristi A. Matus | 13,527 | * | ||||||
Das Narayandas | 2,000 | * | ||||||
Mark Pearson(4)
|
1,359,187 | * | ||||||
Bertram L. Scott | 22,959 | * | ||||||
Charles G.T. Stonehill | 22,515 | * | ||||||
Todd Walthall | — | * | ||||||
Kate C. Burke(5)
|
489 | * | ||||||
Ali Dibadj(5)
|
489 | * | ||||||
Karl Sprules | — | * | ||||||
Laurence E. Cranch | — | * | ||||||
All directors and executive officers as a group (16 persons)(6)
|
2,276,255 | 0.6% |
2021 Annual Report |
153
|
154
|
AllianceBernstein |
2021 Annual Report |
155
|
Parties(1)
|
General Description of Relationship(2)
|
Amounts Received or
Accrued for in 2021 |
|||||||||
Equitable Financial | We provide investment management services and ancillary accounting, valuation, reporting, treasury and other services to the general and separate accounts of Equitable Financial and its insurance company subsidiaries. | $ | 101,312,000 | ||||||||
EQAT and Equitable Premier VIP Trust | We serve as sub-adviser to these open-end mutual funds, each of which is sponsored by a subsidiary of Equitable Holdings. | 28,079,000 | |||||||||
Equitable America | 2,609,000 | ||||||||||
Equitable Holdings | 1,686,000 |
Parties(1)
|
General Description of Relationship |
Amounts Paid or
Accrued for in 2021 |
|||||||||
Equitable Holdings | Distributes certain of our Retail Products; provides Private Wealth Management referrals; sells shares of our mutual funds under Distribution Service and Educational Support agreements; includes us as insured under various insurance policies. | $ | 10,876,000 | ||||||||
156
|
AllianceBernstein |
2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||
Audit fees(1)
|
$ | 6,956 | $ | 6,616 | ||||||||||
Audit-related fees(2)
|
3,580 | 3,188 | ||||||||||||
Tax fees(3)
|
2,221 | 1,222 | ||||||||||||
All other fees(4)
|
6 | 6 | ||||||||||||
Total | $ | 12,763 | $ | 11,032 |
2021 Annual Report |
157
|
PART IV | ||
Exhibit | Description | ||||
3.01 | |||||
3.02 | |||||
3.03 | |||||
3.04 | |||||
3.05 | |||||
3.06 | |||||
3.07 | |||||
3.08 | |||||
4.01 | |||||
10.01 | |||||
10.02 | |||||
10.03 | |||||
10.04 | |||||
10.05 | |||||
10.06 |
158
|
AllianceBernstein |
Exhibit | Description | ||||
10.07 | |||||
10.08 | Amended and Restated Revolving Credit Agreement, dated as of October 13, 2021 (incorporated by reference to Ex. 99.01 to Form 8-K, as filed October 19, 2021) | ||||
10.09 | |||||
10.10 | |||||
10.11 | |||||
10.12 | |||||
10.13 | |||||
10.14 | |||||
10.15 | |||||
10.16 | |||||
10.17 | |||||
10.18 | |||||
10.19 | |||||
10.20 | |||||
10.21 | |||||
10.22 | |||||
10.23 | |||||
10.24 | |||||
10.25 |
2021 Annual Report |
159
|
Exhibit | Description | ||||
10.26 | |||||
10.27 | |||||
10.28 | |||||
10.29 | |||||
21.01 | |||||
23.01 | |||||
31.01 | |||||
31.02 | |||||
32.01 | |||||
32.02 | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema. | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase. | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | ||||
104 | The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2021, formatted in Inline XBRL (included in Exhibit 101). | ||||
* | Denotes a compensatory plan or arrangement |
160
|
AllianceBernstein |
Signatures | ||
AllianceBernstein L.P. | ||||||||
Date: February 11, 2022 | By: | /s/ Seth P. Bernstein | ||||||
Seth P. Bernstein | ||||||||
Chief Executive Officer |
Date: February 11, 2022 | /s/ Ali Dibadj | |||||||
Ali Dibadj | ||||||||
Chief Financial Officer & Head of Strategy |
Date: February 11, 2022 | /s/ William R. Siemers | |||||||
William R. Siemers | ||||||||
Controller & Chief Accounting Officer |
2021 Annual Report |
161
|
/s/ Seth P. Bernstein | /s/ Joan Lamm-Tennant | |||||||
Seth P. Bernstein | Joan Lamm-Tennant | |||||||
President and Chief Executive Officer | Chair of the Board | |||||||
/s/ Nella L. Domenici | /s/ Jeffrey J. Hurd | |||||||
Nella L. Domenici | Jeffrey J. Hurd | |||||||
Director | Director | |||||||
/s/ Daniel G. Kaye | /s/ Nick Lane | |||||||
Daniel G. Kaye | Nick Lane | |||||||
Director | Director | |||||||
/s/ Kristi A. Matus | /s/ Das Narayandas | |||||||
Kristi A. Matus | Das Narayandas | |||||||
Director | Director | |||||||
/s/ Mark Pearson | /s/ Bertram L. Scott | |||||||
Mark Pearson | Bertram L. Scott | |||||||
Director | Director | |||||||
/s/ Charles G.T. Stonehill | /s/ Todd Walthall | |||||||
Charles G. T. Stonehill | Todd Walthall | |||||||
Director | Director |
162
|
AllianceBernstein |
Description |
Balance at Beginning
of Period |
Credited to
Costs and Expenses |
Deductions |
Balance at End
of Period |
||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2021 | $ | 311 | $ | — | $ | (17) | (a) | $ | 328 | |||||||||||||||||||||||
For the year ended December 31, 2020 | $ | 309 | $ | 100 | $ | 98 | (b) | $ | 311 | |||||||||||||||||||||||
For the year ended December 31, 2019 | $ | 395 | $ | 132 | $ | 218 | (c) | $ | 309 |
2021 Annual Report |
163
|
Floor (entire floor unless otherwise noted)
|
Delivery Date
|
||||
Concourse (part) (Sup15 §23(a), Sup17 §13, Sup23 §2a)
|
Delivered.
|
||||
Ground Floor (part) **
|
The Ground Floor (part) formerly leased to Alliance has been surrendered and deleted from the demised premises. Landlord has leased the Ground Floor (part) to Wachovia Bank, National Association (“Wachovia”) pursuant to the Agreement of Lease dated December 22, 2003 (the “Wachovia Lease”), for a term coterminous with Alliance's lease which Wachovia may extend pursuant to its three 5-year extension options. If the term of the Wachovia Lease expires or terminates prior to the expiration or termination of Alliance’s lease, then, on the day after said termination, the Ground Floor (part) will be added back to the demised premises on substantially the same terms (including the rent terms) as were in effect prior to its surrender and deletion from the demised premises (Sup21 §3). For more information regarding the terms of the surrender of Ground Floor part, see below.
|
||||
2, 8, 9, 11 through 14 (Sup15 §2(a); Ltr2; Sup16 §11)
|
Delivered.
|
||||
10 (Sup19 §3(a)) ***
|
Delivered.
|
||||
15 (Sup12 §2(a))
|
Delivered.
|
||||
16 (Sup12 §2(b))
|
Delivered.
|
||||
17 (Sup16 §2(b); Sup17 §2(b); Sup18 §2(b); Sup22 §2(b))
|
Delivered.
|
||||
31 (part) (Sup7 §2(c))
|
Delivered.
|
||||
31 (part) (Sup24 §2(a))
|
Delivered.
|
||||
32 (Sup6 §2)
|
Delivered.
|
||||
33 (Sup7 §2(a))
|
Delivered.
|
||||
34 (NW Cor. 94) (Sup8 §2(a))
|
Delivered.
|
||||
34 (NW Cor. 95) (Sup8 §1(c))
|
Delivered.
|
||||
34 (balance) (Sup7 §2(b))
|
Delivered.
|
||||
35 (Sup14 §2(a))
|
Delivered.
|
||||
36 (Sup14 §2(b))
|
Delivered.
|
||||
37 (NE Cor.) (orig. intro.)
|
Delivered.
|
||||
37 (NW Cor.) (orig. §46.01)
|
Delivered.
|
||||
37 (SE Cor.) (Sup1 §2)
|
Delivered.
|
||||
37 (SW Cor.) (Sup5 §2)
|
Delivered.
|
||||
38 (orig. intro.)
|
Delivered.
|
39 (Sup4 §2)
|
Delivered.
|
||||
40 and 41 (Sup9 §3(a); LTR1 par 2)
|
Delivered.
|
||||
42 (Sup25 §2(a))
|
Delivered.
|
||||
43 and 44 (Sup26 §2(a))
|
Delivered.
|
Check Meters:
|
All floors have check meters except for Floors 31 (part), 32-34, and 37-39, which will have check meters on or before November 1, 2009 (Sup9 §5) and Floor 42, which will have check meters on or before May 1, 2011 (Sup25 §4(c)(i)). The check meters measure electricity demand and consumption for each floor during a calendar month. Alliance pays Landlord, within 30 days after receipt of a bill, Landlord’s cost of the electricity consumed based on the applicable rate charged to the Landlord by the supplying utility, plus a 2% administrative fee (Sup9 §5(b) and (c); Sup12 §4(b) and (c); Sup14 §4(b) and (c); Sup15 §4(b) and (c); Sup22 §4(b); Sup24 §4(b); Sup25 §4(c); Sup26 §4(b)). Landlord will provide check meters for any portion of the Concourse (part) space measuring at least 3,000 contiguous rsf (Sup15 §23(f)(i)). If the check meters for Floors 31 (part), 32-34, and 37-39 are not installed by November 1, 2009, then Alliance will pay Landlord what Landlord’s electrical consultant determines to be Landlord’s cost for such electricity, provided that Alliance may dispute such determination in accordance with a specified procedure.
|
||||
Dispute:
|
Each bill is binding on Alliance unless Alliance disputes such bill within 90 days of receipt. In case of a dispute, Alliance’s electrical consultant will submit its determination within such 90 day period and Landlord and Alliance will seek a resolution. Upon Alliance’s request, Landlord will make available its utility bills for the building for at least the last 3 years. If Landlord and Alliance cannot agree, they will choose a third electrical consultant to perform a limited review (Sup12, §5(c)(ii); Sup12 §4(c)(ii); Sup14 §4(c)(ii); Sup15 §4(c)(ii); Sup22 §4(c)(ii); Sup24 §4(c)(ii); Sup25 §4(c)(iii); Sup26 §4(b)).
|
||||
Wattage:
|
6 watts per usable square foot excluding building HVAC systems and other base building systems (Sup9 §5(e); Sup12 §4(e); Sup14 §4(e); Sup15 §4(e); Sup22 §4(e); Sup24 §4(e); Sup25 §4(e); Sup26 §4(e)).
|
||||
Additional Capacity:
|
Upon notice from Alliance, Landlord will provide Alliance with (1) an additional 400 amperes in the aggregate for the 15th and 16th floors (Sup12 §4(e)), and (2) up to another 1,800 amperes for the entire demised premises (Sup14 §4(f)). Such notice will be given by Alliance on or before, with regard to the 15th and 16th floors, the date Alliance delivers to Landlord its plans for its initial fit-out of the 15th floor (but in no event later than June 30, 2001), and, with regard to the rest of the demised premises, by December 31, 2001 (Sup12 §4(e) and Sup14 §4(e)). Alliance is responsible for any construction costs it would incur in connection with alterations relating to such additional electricity supply, as well as a pro-rata share of Landlord’s construction costs (Sup12 §4(e); Sup14 §4(e); and Sup15 §4(f)).
|
||||
Discontinuance of Service:
|
Landlord may discontinue furnishing electricity to Alliance only if Landlord simultaneously discontinues service to 80% of the other building tenants (Sup15 §4(d)), upon 60 days’ written notice, provided such period is extended as reasonably necessary to permit Alliance to obtain electricity from the utility company servicing the Building. In such case, Alliance may use the existing wiring. The cost of installation of any additional wiring will be borne, if such discontinuance is voluntary, by Landlord, and if such discontinuance is involuntary, by Landlord and Alliance with Alliance’s share equal to the total cost of such additional wiring multiplied by a fraction, the numerator of which is remaining months of the Lease term and the denominator of which is as follows:
|
Floor(s)
|
Denominator
|
||||
2, 8-14
|
188 (Sup15 §4(d))
|
||||
15, 16
|
248 (Sup12 §4(d) and (h); Sup15 §4(d))
|
||||
17 |
182 for the space demised by Sup22, 214 for the space demised by Sup18 and 219 for all other space on Floor 17 (Sup22 §4(d)).
|
||||
31 (part), 32-34, 37-41
|
294 (Sup9 §15(d); Sup15 §4(d))
|
||||
31 (part)
|
116 (Sup24 §4(d))
|
||||
35 and 36
|
237 (Sup14 §4(d); Sup15 §4(d))
|
||||
42 |
150 (Sup25 §4(d))
|
||||
43 and 44
|
104 (Sup26 §4(d))
|
Electricity Rent Inclusion Factor for Floors 31 (part), 32-34, and 37-39:
|
Until November 1, 2009, the charge for electricity for Floors 31 (part), 32-34, and 37-39 (the “ERIF”) is included in fixed annual rent (orig. §7.02(a)). Such charge, however, is separately quantified (as listed below) and is subject to increase or decrease (but in no event below $2.75 per s.f. per annum) in proportion to increases or decreases in Landlord’s electricity costs for the building (orig. §7.02(a)).
|
Floor (entire floor unless otherwise noted)
|
Original ERIF
|
||||
31(part), 33, 34
|
$249,902.46 (Sup7 §3(g))
|
||||
32 |
$104,337.75 (Sup6 §3(c))
|
||||
37 (NE Cor.), 38
|
$127,187.50 (orig. §7.02(a))
|
||||
37 (NW Cor.)
|
$27,500.00 (orig. §46.02(d))
|
||||
37 (SE Cor.)
|
$13,750.00 (Sup1 §3(e)
|
||||
37 (SW Cor.)
|
$27,912.50 (Sup5 §3(c))
|
||||
39 |
$96,937.50 (Sup4 §3(c))
|
Electricity Rent Inclusion Factor for 42nd Floor:
|
Until May 1, 2011, the charge for electricity for Floor 42 is included in fixed annual rent. The initial amount of such charge is $5.81 per s.f. and is subject to increase or decrease (but in no event below $5.81 per s.f. per annum) in proportion to increases or decreases in Landlord’s electricity costs for the building as well based on Alliance’s electricity consumption. A determination by Landlord of a change in the rent inclusion charge as a result of a survey of electrical consumption in the Demised Premises will be binding on Alliance unless Alliance disputes such determination within 30 days of receipt of such determination. If Alliance disputes such determination, it will have its own electrical consultant at its own cost attempt to resolve the dispute in consultation with Landlord’s electrical consultant. If they cannot agree on a resolution, they will choose a third electrical consultant who’s decision will control (Sup25 §4(b)).
|
Supplies:
|
At Landlord’s option, Alliance is required to purchase (for a reasonable charge) from Landlord all lighting tubes, lamps, bulbs and ballasts used in the demised premises (orig. §7.05(b)).
|
||||
Concourse Space:
|
Subject to the following sentence, for any portion of the demised premises located on the concourse consisting of less than 3,000 contiguous rsf, Alliance will pay an ERIF of $0.75/rsf, subject to increase if Alliance uses the space for anything other than storage (Sup15 §23(f)(ii)). For the portion of the demised premises located on the concourse and leased pursuant to Sup23, however, Landlord will provide electricity at no additional charge provided that if Landlord determines on a reasonable basis that Alliance is consuming excessive electricity, then Landlord may commence charging Alliance for such electricity on either (at Landlord’s option) a rent inclusion or submeter basis.
|
FLOOR
|
BASE YEAR
|
PERCENTAGE
|
||||||
Ground Floor (part)
|
1999/2000 (Sup13§3(c)(1)).
|
0.483%
(Sup13 §3(c)(2)) |
||||||
2, 8, 9, 11-14
|
Average of 2000/01 and 2001/02 (Sup15 §3(d)(i)).
|
14.72%
(Sup15 §3(d)(ii); Sup19 §2(d)) |
||||||
10 |
Average of 2000/01 and 2001/02 (Sup15 §3(d)(i)).
|
2.11% (Sup19 §3(d))
|
||||||
15 |
1999/2000 (Sup12 §3(a)(4)(a)).
|
2.150%
(Sup12 §3 (a)(4)(b)) |
||||||
16 |
1999/2000 (Sup12 §3(b)(4)(a)).
|
2.150%
(Sup12 §3(b)(4)(b)) |
||||||
17 |
Average of 2000/01 and 2001/02 (Sup16 §3(d)(i); Sup17 §3(d)(i); Sup18 §3(d)(i)) Except with respect to the Sup22 17th floor space, for which it is the average of 2003/04 and 2004/05 (Sup22 §3(d)(i)).
|
2.147% (Sup16 §3(d)(ii); Sup17 §3(d)(ii); Sup18 §3(d)(ii); Sup22 §3(d)(ii))
|
||||||
31 (part), 33, 34
|
Average of 1994/95 and 1995/96 (Sup7 §(3)(f)(i)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
5.130%
(Sup7 §3(f)(ii)) |
||||||
31 (part)
|
Average of 2007/08 and 2008/09 (Sup24 §3(d)(i)).
|
1.35% (Sup24 §3(d)(ii))
|
||||||
32 |
1993/94 (Sup6 §3(b)(i)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
2.150%
(Sup6 §3(b)(ii)) |
||||||
35 |
2000/01 (Sup14 §3(a)(4)(a)).
|
2.150%
(Sup14 §3(a)(4)(b)) |
||||||
36 |
2000/01 (Sup14 §3(b)(4)(a)).
|
2.150%
(Sup14 §3(b)(4)(b)) |
||||||
37 (NE Cor.), 38
|
1985/86 (orig. §4.01(a)(i)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
2.820%
(orig. §4.01(a)(ii) |
||||||
37 (NW Cor.)
|
1985/86 (orig. §4.01(a)(i)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
0.610%
(orig. §46.02(b)) |
||||||
37 (SE Cor.)
|
1985/86 (Sup1 §3(a)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
0.300%
(Sup1 §3(b)) |
||||||
37 (SW Cor.)
|
1988/89 (Sup5, §3(b)(i)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
0.618%
(Sup5 §3(b)(ii) |
||||||
39 |
1988/89 (Sup4 §3(b)(i)). Beginning on 11/01/09, changed to 1995/96 (Sup9 §4(e)).
|
2.150%
(Sup4 §3(b)(ii)) |
||||||
40, 41, 45
|
1995/96 (Sup9 §4(d)(i)).
|
6.446%
(Sup10 §2(a)) |
||||||
42 |
1988/89 (Sup25 §3(d)(i)(a)). Beginning on 5/1/11, changed to average of 2007/08 and 2008/09 (Sup25 §3(d)(i)(b)).
|
2.24%
(Sup25 §3(d)(ii)) |
||||||
43 and 44
|
Average of 2007/08 and 2008/09 (Sup26 §3(d)(i)).
|
4.45%
(Sup26 §3(d)(ii)) |
Floor
|
Base
|
Percentage
|
||||||
Ground (part)
|
Expenses for 1999 calendar year (Sup13 §3(c)(3)).
|
0.483%
(Sup13 §3(c)(4)) |
||||||
2, 8, 9, 11-14
|
Expenses for 2001 calendar year (Sup15 §3(d)(ii)).
|
15.67%
(Sup15 §3(d)(iv); Sup19 §2(c)) |
||||||
15 |
Expenses for 1999 calendar year (Sup12 §3(a)(4)(c)).
|
2.290%
(Sup12 §3(c)(4)(d)) |
||||||
16 |
Expenses for 1999 calendar year (Sup12 §3(b)(4)(c)).
|
2.290%
(Sup12 §3(b)(4)) |
||||||
17 |
Expenses for 2001 calendar year (Sup16 §3(d)(iii); Sup17 §3(d)(iii); Sup18 §3(d)(iii)), except for the Sup22 17th floor space, for which it is 2004 (Sup22 §3(d)(iii)).
|
2.288% (Sup16 §3(d)(iv); Sup17 §3(d)9iv); Sup18 §3(d)(iv) and Sup22 §3(d)(iv))
|
||||||
31 (part), 33, 34
|
Expenses for 1995 calendar year (Sup7 §3(f)(iii); Sup9 §4(e)).
|
5.450%
(Sup7 §3(f)(iv)) |
||||||
31 (part)
|
Expenses for 2008 calendar year (Sup24 §3(d)(iii)).
|
1.43%
(Sup24 §3(d)(iv)) |
||||||
32 |
Expenses for 1993 calendar year (Sup6 §3(b)(iii)). As of 11/01/09, changed to expenses for calendar year 1995 (Sup9 §4(e)).
|
2.290%
(Sup6 §3(b)(iv)) |
||||||
35 |
Expenses for 2000 calendar year (Sup14 §3(a)(4)(c)).
|
2.290%
(Sup14 §3(a)(4)(d)) |
||||||
36 |
Expenses for 2000 calendar year (Sup14 §3(b)(4)(c)).
|
2.290%
(Sup14 §3(b)(4)(d)) |
||||||
37 (NE Cor.) and 38
|
$6,509,748 (orig §5.01(a)(i)). As of 11/01/09, changed to expenses for 1995 calendar year (Sup9 §4(e)).
|
3.000%
(orig §5.01(a)(iv)) |
||||||
37 (NW Cor.)
|
$6,509,748 (orig. §5.01(a)(i)). As of 11/01/09, changed to expenses for 1995 calendar year (Sup9 §4(e)).
|
0.650%
(orig. §46.01(b)) |
||||||
37 (SE Cor.)
|
$6,509,748 (Sup1 §5.01(a)(i)). As of 11/01/09, changed to expenses for calendar year 1995 (Sup9 §4(e)).
|
0.330%
(Sup1 §3(c)) |
||||||
37 (SW Cor.)
|
Expenses for calendar year 1989 (Sup5 §3(b)(iii)). As of 11/01/09, changed to expenses for calendar year 1995 (Sup9 §4(e)).
|
0.659%
(Sup5 §3(b)(iv) |
||||||
39 |
Expenses for calendar year 1989 (Sup4 §3(b)(iii)). As of 11/01/09, changed to expenses for calendar year 1995 (Sup9 §4(e)).
|
2.290%
(Sup4 §3(b)(iv)) |
||||||
40, 41
|
Expenses for calendar year 1995 (Sup9 §4(d)9iii)).
|
6.865% (Sup11 §2(c))
|
||||||
42 |
Expenses for calendar year 1989 (Sup25 §3(d)(iii)(a)). As of 5/1/11, changed to expenses for calendar year 2008 (Sup25 §3(d)(iii)(b)).
|
2.38%
(Sup25 §3(d)(iv)) |
||||||
43 and 44
|
Expenses for calendar year 2008 (Sup26 §3(d)(iii)).
|
4.73%
(Sup26 §3(d)(iv)) |
Services:
|
The Cleaning Contractor provides certain cleaning services for the office areas and lavatories of the demised premises (§1(a)). The cleaning services provided do not include the cleaning of below-grade space, kitchen, pantry or dining space, storage, shipping, computer or word-processing space, or private or executive lavatories (§1(b)). The Cleaning Contractor is not responsible for removing debris and rubbish from areas under construction in the demised premises (§2). The quality of the cleaning services will be comparable to that provided in first class buildings in midtown Manhattan (§1(a)).
|
||||
Access:
|
The Cleaning Contractor has access to the demised premises from 6 p.m. to 2 a.m. on business days. The Cleaning Contractor has the right to use Alliance’s light, power and water, as reasonably required (§1(a)).
|
||||
Term:
|
The cleaning agreements are co-terminous with the Lease (§2).
|
||||
Fee:
|
Alliance pays the Cleaning Contractor, for the office space, a fixed monthly fee of $310,465.73, plus an amount equal to the fee for Floor 36 multiplied by the percentage increase in the labor rate in 2000 over 1999, plus an amount equal to the fee for Floors 2, 8, 9, 11-14 multiplied by the percentage increase in the labor rate in 2001 over 2000, plus an amount equal to the fee for Floor 10 multiplied by the percentage increase in the labor rate in 2001 over 2000 (CAO §3; CAO-2 §3; CAO-3 §3; CAO-4 §3; CAO-5 §3; CAO-6 §3; CAO-7 §3; CAO-8 §3; CAO-9 §3; CAO-11 §3). Alliance pays the Cleaning Contractor a fixed monthly fee of $2,833.33 for the ground floor space (CAG §3). The fixed monthly fee for cleaning the office space will increase by $11,087.73 plus an adjustment based on the increase in the labor rate in 2008 over 2007 with the addition of remainder of Floor 31 to demised premises (CAO-10 §3) and will increase by $36,604.68 plus an adjustment based on the increase in the labor rate in 2008 over 2007 with the addition of Floor 10 to demised premises (CAO-12 §3). The monthly fee with respect to Floor 8 for the extended term of January 1, 2020 through December 31, 2024 is $14,717.83. (Sup28 §2). The fixed monthly fee is inclusive of sales tax and is payable in advance on the first of each month (§3). Payment for any additional cleaning services will be made by Alliance within 20 days of demand. The cost of such additional services must be comparable to services provided in comparable buildings (§1(a)). In addition to the fixed fee, Alliance pays the Cleaning Contractor a percentage of annual increases in cleaning costs (which annual increases are equal to the annual percentage increase in porters’ wages over a porter’s wage base year) over an amount representing base year cleaning costs. The percentage for the office space is 53.899% (CAO §3 and §4; CAO-2 §3; CAO-3 §3; CAO-4 §3; CAO-5 §3; CAO-6 §3; CAO-7 §3; CAO-8 §3; CAO-9 §3; CAO-11 §3) and 0.483% for the ground floor space (CAG §4). The percentage for the office space will increase by 1.46% (CAO-10 §3) to with the addition of the remainder of Floor 31 and will increase by 4.82% with the addition of Floors 43 and 44. The percentage for Floor 8 for the extended term of January 1, 2020 through December 31, 2024 is 2.29%. (Sup28 §2). The other variables in such calculation are as follows:
|
Floor
|
Base Year for
Porter’s Wages |
Base for Cleaning Costs
|
||||||
Ground (part)
|
1999 (CAG §4)
|
$6,286,271.55 (CAG §4)
|
||||||
2, 8-14
|
2001 (CAO-5, §4)
|
$6,444,056.97 (CAO-5, §4)
|
||||||
15 and 16
|
1999 (CAO-3 §4)
|
$6,247,986 (CAO-3, §4)
|
||||||
17 (except for the part demised by Sup22)
|
2001 (CAO-6 §4; CAO-7 §4; CAO-8 §4)
|
$6,629,645.81 | ||||||
17 (the part demised by Sup22)
|
2004 (CAO-9 §4)
|
$7,606,434.69 (CAO-9 §4)
|
||||||
31 (part) , 32-34, 37-41
|
1995 (CAO §4(a)(i))
|
$5,827,772 (CAO §4(a)(iii))
|
||||||
31 (the part demised by Sup24)
|
2008 (CAO-10 §4)
|
$8,408,948.97 (CAO-10 §4)
|
||||||
35 and 36
|
2000 (CAO-4 §4)
|
$6,381,693 (CAO-4 §4)
|
||||||
42 |
2008 (CAO-11 §4)
|
$8,408,948.97 (CAO-11 §4)
|
||||||
43 and 44
|
2008 (CAO-12 §4)
|
$8,408,948.97 (CAO-12 §4)
|
Dispute with Cleaning Contractor:
|
If Alliance believes that the Cleaning Contractor is not adequately performing under a cleaning agreement, and the Cleaning Contractor has not corrected such inadequate performance within 10 days after notice, Alliance may arbitrate whether the Cleaning Contractor is adequately performing. If a majority of the required arbitrators find that the Cleaning Contractor is not adequately performing, then the Cleaning Contractor will correct such inadequate performance within 10 days of such finding. If Contractor fails to do so, Alliance may terminate the cleaning agreement upon 10 days notice. (§5).
|
||||
Default by Alliance:
|
If Alliance fails to make a payment due under a cleaning agreement within 15 days of notice of such failure, the Cleaning Contractor may, upon 10 days notice terminate the cleaning agreement if Alliance also fails to make such payment within such 10 day period. In case of such termination, Alliance may only use the approved cleaning contractor for the building (§6). If a payment is not made within 3 days of notice of such failure, such payment accrues interest from the due date at prime rate, provided that Cleaning Contractor is not obligated to give such notice more than twice a year (§12).
|
||||
Rent Credit:
|
Alliance is entitled to a credit against the monthly installment of fixed rent in the amount of $169,479.10 per month (Sup9 §4(c); Sup10 §2(c); Sup11 §2(c); LTR1; Sup12 §3(a)(3) and §3(b)(3); Sup14 §3(a)(3) and §3(b)(3); Sup15 §3(c)) Sup16 §3(c); Sup17 §3(c); Sup18 §3(c) and Sup22 §3(c) plus an amount equal to the credit for Floor 36 multiplied by the percentage increase in the labor rate in 2000 over 1999 (Sup14 §3(b)(3)). The monthly credit will increase by (i) $92,734.38 plus an adjustment based on the increase in the labor rate in 2001 over 2000 with the addition of Floors 2, 8, 9, 11-14 to the demised premises (Sup15 §3(c); Sup19 §2(c)), (ii) by $13,296.17 plus an adjustment based on the increase in the labor rate in 2001 over 2000 with the addition of Floor 10 to the demised premises (Sup19 §3(c)); (iii) by $11,087.72 plus an adjustment based on the increase in the labor rate in 2008 over 2007 with the addition of remainder of Floor 31 to the demised premises (Sup24 §3(c)); (iv) by $220,539.40 plus an adjustment based on the increase in the labor rate in 2008 over 2007 on May 1, 2011 (Sup25 §3(c)); and (v) by $439,256.17 plus an adjustment based on the increase in the labor rate in 2008 over 2007 on May 1, 2011. The monthly credit with respect to Floor 8 for the extended term of January 1, 2020 through December 31, 2024 is $13,635.52. (Sup28 §2).
|
||||
Termination of Cleaning Agreement:
|
In the event the cleaning agreement for the office space is terminated, Landlord will provide cleaning services and Alliance will pay Landlord on a monthly basis for the office space (assuming that all of the office space demised under the lease is delivered to Alliance at that time) 60.17% (Sup26 §7(a)) of annual increases in cleaning costs (which annual increases are equal to annual percentage increases in porter’s wages) over Landlord’s cleaning costs for the entire building during the first full calendar year after the Cleaning Agreement’s termination (orig. §6.04, as modified by Sup9 §8(a)). Landlord’s cleaning cost escalation statements are final and determinative unless Alliance challenges such statement in writing within 90 days (Sup7 §6(d)) of receipt. Alliance must make payment in accordance with such statement pending dispute resolution. Landlord and Alliance will resolve any dispute by arbitration with 3 arbitrators, each of whom will have at least 10 years’ experience in the operation and management of major Manhattan office buildings (orig. §6.01(d)).
|
Alliance’s Responsibility
|
Alliance will make repairs to the demised premises necessitated by its acts, omissions, occupancy or negligence (except for fire or other casualty caused by Alliance’s negligence if Landlord’s insurance is not invalidated thereby) (orig. §9.01).
|
||||
Landlord’s Responsibility
|
Landlord will maintain the building and its common areas in a manner appropriate to a first class office building. The building exterior, the window sills outside the window and the windows are not part of the demised premises (orig. §9.01).
|
Approval:
|
All alterations require Landlord’s prior written approval, which will not be unreasonably withheld or delayed, provided that it does not (1) affect the structural integrity of the building, (2) affect the exterior of the building, or (3) adversely affect the building’s systems without, in Landlord’s opinion, adequate mitigation (orig. §8.01).
|
||||
Landlord’s Reimbursement:
|
Alliance will reimburse Landlord’s out-of-pocket costs incurred in reviewing alterations (orig. §8.01).
|
||||
Contractors:
|
Landlord’s affiliate will act as general contractor for any alteration work performed anywhere in the demised premises for one year after the delivery of the 2nd and 8th-14th floors, for a fee not to exceed 6% of the aggregate cost of such work. In acting as general contractor, Landlord’s affiliate will obtain competitive bids from at least 3 subcontractors approved by Landlord for each category of work, except that there is only one approved subcontractor for air conditioning balancing work (although Alliance may have another subcontractor verify the work) and there are only 2 unaffiliated subcontractors for the base building work (Sup15 §6(a)). Alliance and Plaza Construction Corp., Landlord'’s affiliate, have subsequently entered into that certain Master Agreement dated January 27, 2004 pursuant to which Plaza Construction Corp. will provide construction management services to Alliance in respect of construction projects at the building. Landlord must have given its approval of any contractors performing alterations. Alliance will inform the Landlord of the name of any contractors or subcontractors Alliance proposes to do any alterations at least 10 days prior to work commencement (orig. §8.01 2(a)).
|
||||
Insurance Certificates:
|
Prior to commencing any alterations, Alliance will deliver to Landlord an insurance certificate evidencing the existence of workmen’s compensation insurance covering all persons involved in such alterations and reasonable comprehensive general liability and property damage insurance with coverage of at least $1 million single limit (orig. §8.01(7)).
|
||||
Records:
|
Alliance will keep records of alterations exceeding $25,000 in cost and provide copies of such records to Landlord within 45 days of demand (orig. §8.07).
|
||||
38th/39th Floor Staircase:
|
Alliance has the right to install a staircase between the 38th and 39th floors provided that Landlord approves the plans therefor and the staircase is installed in compliance with Articles 8 and 45 of the lease (Sup4 §14).
|
||||
Expiration of Term:
|
All improvements installed by Landlord are the property of the Landlord (orig. §8.03) and all permanent improvements (including, therefore, any kitchen, pantry or dining room) will remain at the expiration of the term without Alliance being obligated to remove such permanent improvements. (orig. §8.04) All fixtures (other than trade fixtures) installed by Landlord become the property of the Landlord, and will remain as part of the demised premises, upon expiration of the lease. All furnishings and trade fixtures supplied by Alliance at its expense are Alliance’s property and, with regard to Alliance’s furniture and movable office equipment only (Sup7 §6(e)), will be removed upon the expiration of the lease term following the lease expiration unless Landlord notifies Alliance (within 30 days after Alliance’s notice, which notice will be given at least 3 months prior to expiration of the lease term) that such property may remain in the demised premise following the lease term expiration (orig. §8.05). Alliance has no obligation to remove any staircases in the demised premises (Sup9 §21).
|
Emergency Generator:
|
Alliance is permitted to install a 2800 KW Detroit diesel emergency generator back-up power system in specified locations in the building (Sup27 §2(b)). Alliance is permitted to connect the back-up power system to the building’s emergency generator system. Up to 1500 KW of the power generated by the back-up power system will back-up the building’s emergency generator system (Sup27 §2(d)). Landlord will operate and maintain the back-up power system at Alliance’s expense and, as part of such obligation, Landlord will enter into a maintenance contract for same subject to the reasonable approval of Alliance (Sup27 §2(d)). Alliance is obligated to pay a one-time fee for such emergency generator rights equal to $75,000, adjusted for inflation based on increases in the Consumer Price Index (Sup27 §2(f)). Alliance will pay for its proportionate share (based on KW capacity) of fuel purchased for the emergency generator system and has the right, subject to Landlord’s reasonable approval, to install its own fuel storage tanks (Sup27 §2(g)). The back-up power system will remain and not be removed at the end of the lease term (Sup27 §2(i)). Alliance has, through 1/31/10, a limited right of first offer to lease space to install another emergency generator. Alliance has 15 days to accept any such offer (Sup27 §3).
|
||||
Communications Antenna or Dish:
|
Alliance has the right, subject to the other alteration provisions of the Lease and to all applicable legal requirements, to install a communications antenna or dish on the roof in a location reasonably determined by Landlord. Landlord may require Alliance to relocate the antenna, at Landlord’s expense, to mitigate interference with other uses, so long as the antenna is able to function in its relocated position, provided that if such relocation does mitigate the interference, Landlord may require Alliance to remove the antenna so long as no other antennas are allowed to be installed on the roof and Landlord bears the cost of such removal and the unamortized value of the antenna. If deemed reasonably advisable by Landlord’s engineer, Landlord will, at Alliance’s expense, reinforce the area under the antenna and, upon lease expiration, Alliance will remove the antenna and restore any damage caused thereby. Alliance will pay Landlord one-half of fair market rent for the roof space used by the antenna. Alliance, under Landlord’s supervision (the cost of which Alliance is obligated to reimburse, has access to the roof and other areas of the building as reasonably necessary to maintain and repair the antenna (Sup9 §20).
|
||||
Communications Wiring:
|
Landlord will provide Alliance a reasonable area in a common vertical riser shaft in the building for the installation of data, communications and security system cabling.
|
||||
Initial Fit-Out of Balance of 31st Floor:
|
Alliance, at its expense, will prepare a complete set of plans for the work, which is subject to the reasonable approval of Landlord (orig. §45.01). Although Alliance is permitted to use its own engineer, such plans ultimately are subject to the reasonable approval of Landlord’s designated engineer. There is no deadline for the delivery to Landlord of the plans for Alliance’s initial fit-out (Sup24 §6(a)). Landlord will provide Alliance with a $762,240 allowance for the hard costs and certain soft costs of the fit-out. The allowance can be disbursed in installments upon Alliance’s request and any unused portion will be credited against fixed rent (Sup24 §6(b)(i)). Alliance may use the allowance to pay for construction work undertaken in the demised premises leased prior to Sup24, but if Alliance draws on the allowance prior to May 1, 2010 then the allowance will be reduced by the future value of the amount drawn upon calculated at 6% per year (Sup24 §6(b)(ii)).
|
||||
Initial Fit-Out of 42nd Floor:
|
Alliance, at its expense, will prepare a complete set of plans for the work, which is subject to the reasonable approval of Landlord (orig. §45.01). Although Alliance is permitted to use its own engineer, such plans ultimately are subject to the reasonable approval of Landlord’s designated engineer. There is no deadline for the delivery to Landlord of the plans for Alliance’s initial fit-out (Sup25 §6(a)). Landlord will provide Alliance with a $1,266,090 allowance for the hard costs and certain soft costs of the fit-out. The allowance can be disbursed in installments upon Alliance’s request and any unused portion will be credited against fixed rent (Sup25 §6(b)). If, however, Alliance draws on the allowance prior to May 1, 2011 then the allowance will be reduced by the future value of the amount drawn upon calculated at 6% per year (Sup25 §6(b)(ii)).
|
||||
Initial Fit-Out of 43rd and 44th Floors:
|
Alliance, at its expense, will prepare a complete set of plans for the work, which is subject to the reasonable approval of Landlord (orig. §45.01). Although Alliance is permitted to use its own engineer, such plans ultimately are subject to the reasonable approval of Landlord’s designated engineer. There is no deadline for the delivery to Landlord of the plans for Alliance’s initial fit-out (Sup26 §6(a)).
|
Subordination, Non-Disturbance and Attornment:
|
The Lease is subordinate to all present and future mortgages and ground leases only to the extent Alliance receives a subordination, non-disturbance and attornment agreement from the holder thereof (orig. §11.01; Sup15 §8). Alliance will not exercise any right to terminate the lease due to an act or omission of Landlord without first giving notice of such act or omission to any mortgagee or ground lessor of which Alliance has been notified and giving such mortgagee or ground lessor an opportunity to cure such act or omission within a reasonable period of time after such notice provided that such mortgagee or ground lessor notifies Alliance that it will commence and continue to remedy such act or omission (orig. §11.02). Alliance and the property’s mortgagee are parties to a subordination, non-disturbance and attornment agreement (SNDA-M). Alliance and the property’s ground lessor are parties to a subordination, non-disturbance and attornment agreement (SNDA-G).
|
||||
Estoppel:
|
Alliance will provide an estoppel certificate within 10 days after Landlord’s request. The estoppel certificate will certify:
(a) that the Lease is unmodified and in full force and effect or, if there has been any modification that the same is in full force and effect as modified and state any such modification;
(b) whether the term of the Lease has commenced and rent become payable thereunder; and whether Alliance has accepted possession of the demised premises;
(c) whether or not there are then existing any defenses or offsets which are not claims under paragraph (e) below against the enforcement of any of the agreements, terms, covenants, or conditions of the Lease any modification thereof upon the part of Alliance to be performed or complied with, and, if so, specifying the same;
(d) the dates to which the fixed annual rent, and additional rent, and other charges hereunder, have been paid; and
(e) whether or not Alliance has made any claim against Landlord under the Lease and if so the nature thereof and the dollar amount, if any, of such claim (orig. §36).
|
Insurance:
|
Alliance will reimburse Landlord for any increases in Landlord’s fire insurance caused by Alliance (orig. §10.03).
|
||||
Landlord
|
Landlord is not liable for damage or injury to property or persons unless caused by or due to the negligence of Landlord or its agents, servants or employees (orig. §12.01). Alliance will look solely to Landlord’s estate in the Building for the satisfaction of any judgment (orig. §12.05).
|
||||
Alliance:
|
Alliance will reimburse Landlord for all costs incurred by Landlord that Landlord does not recover from insurance resulting from Alliance’s breach under the lease, by reason of damage or injury caused by Alliance in connection with the moving of Alliance’s property except as provided in the lease, and by reason of the negligence of Alliance or its agents, servants or employees in the use or occupancy of the demised premises (orig. §12.03). Alliance will indemnify, defend and save Landlord harmless from any liability arising from Alliance’s use of the demised premises, breach of the lease, or holding over, except for any liability arising from Landlord’s negligence (orig. 35.01).
|
||||
Waiver of Subrogation
|
Both parties are required to obtain waivers of their insurer’s rights of subrogation provided that such waiver does not result in an additional expense to the party waiving the right of subrogation, unless the other party agrees to be responsible for such additional expense (orig. §12.06(a) and (b)).
|
General:
|
The demised premises are permitted to be used for executive and general offices (orig. §2). Landlord represents that such use does not violate the certificate of occupancy for the demised premises (orig. §17). The demised premises may not be used for a banking office open to street traffic or certain other undesirable businesses (orig. §42.01).
|
||||
Dwyer Unit:
|
Alliance may, subject to Landlord’s consent which may not be unreasonably withheld, install in the demised premises a Dwyer Unit at its sole cost expense provided that:
(a) it is used for Alliance’s employees and guests;
(b) no installation of ventilation equipment is required and no odors emanate from the demised premises from the use thereof;
(c) no additional air conditioning service is required thereby;
(d) use of the unit is expressly subject to the extra cleaning and water consumption provisions of the lease; and
(e) Alliance will engage an extermination service (orig. §49.01; Sup7 §18).
|
||||
Dining:
|
Alliance may, subject to Landlord’s consent which may not unreasonably be withheld, install a dining room with kitchen for use by Alliance’s employees and guests in the demised premises (Sup7 §18), provided that such facilities (a) comply with all applicable laws, (b) are properly ventilated and (c) all wet garbage is bagged and stored so that no odor emanates therefrom (orig. §49.06). If Alliance installs such facilities, then (a) Alliance will pay landlord the cost of an extermination service and (b) will have a refrigerated garbage storage room or other means of disposing of garbage therefrom reasonably satisfactory to Landlord (orig. 32.08 (as modified by Sup9 §6(b)); orig. §49.02), but such refrigerated room will only be required if such wet garbage creates an odor or pest problem (orig. §49.02). Alliance may install additional dining facilities on any floor of the demised premises comparable to the dining facility located on the 39th floor (as it existed as of 8/16/94). (Sup9 §25)
|
||||
Corporate Training Facility:
|
Subject to the other terms of the lease and all applicable laws, Alliance may use a portion of the demised premises for a corporate training facility (Sup5 §11(c)).
|
Expiration Date:
|
December 31, 2024. Landlord has exercised its right to extend the term from December 31, 2019 to December 31, 2024. (Sup15 §12(a), Sup15 §13(a)(i)). Fixed annual rent during the extension period will be at the rate of the average fixed annual rent per s.f. being paid by Alliance on 12/30/19 for all of its space in building (other than ground floor, concourse or subconcourse space). The method of calculating escalations would remain unchanged for such period (Sup15 §13(a)(ii) and (iii); Sup21 §9(a)).
|
||||
Alliance’s 10 Year Extension Option:
|
• Alliance has the option to extend the term for 10 years (Sup9 §12(a)) to expire on 12/31/34.
|
||||
• The exercise deadline for Alliance’s 10 year extension option is 12/31/21 (Sup9 §12(a)(i)).
|
|||||
• As conditions to the exercise of Alliance’s 10 year extension option, as of the date of exercise and as of the first day of the extension period (i) Alliance can not be in default of beyond applicable notice and grace periods of its obligation to pay fixed annual rent, tax escalations and expense escalations, and (ii) Alliance and its affiliates must occupy at least 200,000 rsf (Sup9 §12(a)(ii) and (iii)).
|
|||||
• The fixed annual rent for Alliance’s 10 year extension period is 95% of fair market rent determined as of 36 months before what would have been the expiration of the term if the term had not been extended by Alliance’s ten year extension option, as determined by Landlord and notified to Alliance in writing within 30 days thereafter, plus an increase in proportion to the increase over such 36 month period of the average of the CPI for Urban Consumers and CPI for Urban Wage Earners (both New York, NY-Northeast NJ, base year 1982-84 =100, “All Items”) (Sup9 §12(b)). If Alliance disputes Landlord’s determination of the rent, then Landlord and Alliance will resolve the dispute according to a specified arbitration process (Sup9 §12(b) and §16).
|
|||||
• For purposes of calculating real estate tax escalations, the base year during such extension period is 2019/20 if Landlord does not exercise its 5 year extension option, or 2024/25 if Landlord does exercise its 5 year extension option (Sup9 §12(c)(i); Sup15 §13(b) and (c)). For purposes of calculating expense escalations, the base year for building expenses during such extension period is calendar year 2019 if Landlord does not exercise its 5 year extension option, or calendar year 2024 if Landlord does exercise its 5 year extension option. (Sup9 §12(c)(ii) and (iii); Sup15 §13(b) and (c)).
|
|||||
Electricity:
|
See page 14.
|
|||||||
Elevator:
|
Passenger: Service will be provided as necessary on business days between 8 am and 6 pm and sufficient service at all other times (orig. §32.01). In case of special events at the demised premises, upon 24 hours notice from Alliance, Landlord will provide 2 dedicated elevators staffed by Landlord personnel, the labor cost of which will be reimbursable by Alliance within 30 days of demand (Sup9 §24(a)). Landlord is required to have, in 1996, reconfigured the elevators so that the 32nd floor and the 37th, 38th and 39th floors are served by the same elevators (Sup6, §4(c)).
Freight: Landlord will provide reasonable freight elevator service on business days from 8 am to 6 pm and after-hours service at landlord’s established rates (orig. §32.01). During tenant’s initial fit-out of the remainder of the 31st floor, and the 42nd, 43rd and 44th floors, Alliance has priority but not exclusive use of one freight elevator and non-priority use of a second freight elevator at no charge (Sup14 §13(a); Sup15 §16(a); Sup24 §10(a); Sup25 §10; Sup26 §10). Subject to the terms of the alterations provisions and so long as Alliance is leasing floors 31 (part) through 41, Alliance has the right, at its expense, to make alterations so that any elevator servicing Floors 31 (part) through 41 can stop on any other floor leased by Alliance (Sup15 §24).
|
|||||||
HVAC:
|
Regular Service: During regular hours of operation on business days as from time to time determined by Landlord, but always at least from 8 am to 6 pm, but excluding 9pm to 8 am (orig. §32.02(a)).
|
|||||||
After-Hours Service: Available upon reasonable notice at Landlord’s established rates, payable upon presentation of bill, provided that:
|
||||||||
• if any other tenants in the same air conditioning zone obtain after-hours service, the charge therefore will be equitably pro-rated (orig. §32.02(d)), and
|
||||||||
• Landlord will provide HVAC to Alliance free of charge on any non-business day that the New York Stock Exchange is open (Sup9 §24(b)).
|
Supplemental AC: Subject to the lease provisions (including the alterations section) and all applicable laws, Alliance may at its expense install self-contained package air-conditioning units in the demised premises. Alliance is responsible for the maintenance and repair of such units. Alliance may connect such units to any existing supplementary air-conditioning systems located in the demised premises as of the date the lease commenced with respect to the 37th and 38th floors (orig. §32.10). Alliance has the right to install at its own expense additional supplemental air conditioning in the demised premises subject to service being available from Landlord at Landlord’s established per ton per annum connected load and line charge (Sup5 §11(d)). Alliance has the right to install a supplemental air conditioning system on the 31 (part)-34th, and 37th-39th floors and Landlord will provide condenser water therefor at a connected load and line charge fee of $500 per ton per annum increased after 1991 in proportion to the lease’s expense escalations (Sup6 §17; Sup7 §19).
Condenser Water:
• Floors 2, 8-14: Alliance has reserved 190 tons of condenser water for use on the 2nd and 8th-14th floors, with an option to reserve up to an additional 80 tons upon written notice to Landlord on or before 8/30/04. Landlord’s charge for such condenser water is $568.35 plus annual increases based on the percentage increases in building and parking expenses. Alliance begins paying for such condenser water upon use (but no later after 1 year after delivery of the 2nd and 8th through 14th floors). If Alliance requires more than 270 tons of condenser water for such space, then Landlord will use best efforts to obtain additional condenser from the building’s existing supply and, if unsuccessful, will enter into good faith discussions regarding the installation of an additional cooling tower and allocation of costs relating thereto (Sup15 §16(b)).
• Floors 15-16: The 15th floor has an existing supply of 12 tons of condenser water and the 16th floor has an existing supply of 11 tons of condenser water. Alliance has the right to install at its own expense, pursuant to the alterations provisions of the Lease, a supplemental air-conditioning system on the 15th and 16th floors. Alliance was to have reserved its requirements of condenser water for such supplemental system from the existing supply on or before May 1, 1999 and of additional condenser water (up to 100 tons) by June 30, 2001 (Sup14 §13(b)(ii)). We have been advised by Judd S. Meltzer Co. Inc., however, that Landlord has agreed to reduce such available tonnage to 60 tons in exchange for increasing the available tonnage to 100 tons with respect to Floors 35-36. Landlord’s charge for such condenser water is $552/ton per annum plus annual increases over a 1997 base year (Sup12 §14).
• Floors 2, 8-14, 17 (part): Alliance was required to notify the Landlord of the amount of additional condenser water required by Alliance for its premises on Floors 2, 8-14 and 17 (part), which amount cannot exceed 20 tons, by August 31, 2002. Alliance begins paying for such condenser water upon use at a rate equal to $594.90 per ton per annum increased annually from 2001 at the same percentage rate that building operating expenses increase (Sup16 §10(b)).
• Floors 31 (part) - 34, 40, 41: We have been advised by Judd S. Meltzer Co. Inc. that Alliance has exercised its right to have Landlord supply Alliance with 250 tons condenser water for use in supplemental air conditioning units on Floors 31 (part)-34 or 40, 41 at a cost $250/ton/yr for the first 250 tons/yr and $500/ton/yr (plus annual increases over the 1994 expenses base year). Any condenser water already being provided for Floors 31(part)-34 and 40, 41 are included in determining such rates. Alliance pays for the condenser water that Landlord has agreed to commit to Alliance, regardless of whether Alliance actually uses it (Sup9 §24(f)).
• Floors 35-36: Alliance may purchase up to 60 tons (in the aggregate) of condenser water for use in connection with its supplemental air-conditioning on the 35th and 36th floors. We have been advised, however, by Judd S. Meltzer Co. Inc. that Landlord has agreed to increase such available tonnage to 100 tons in exchange for reducing the available tonnage of additional condenser water to 60 tons with respect to Floors 15-16. Alliance must reserve the condenser water it wishes to purchase by February 8, 2001 (in respect of the 35th floor) and December 31, 2001 (in respect of the 36th floor) Landlord’s charge for such condenser water is $568.35/ton per annum plus annual increases over a 1999 base year (Sup14 §13(b)).
Standards:
• indoor conditions to be 75° 50% RH when outdoor conditions are 92° DB and 74° WB; indoor conditions to be 70° when outdoor conditions are 11°
• outdoor air at a minimum of 20 cfm per person
assumes occupancy of 1 person per 100 usf, electric demand load of 5 watts per usf, and appropriate use of blinds (Sup9 §24(c)(ii)).
|
Water:
|
Landlord is required to supply an adequate quantity for ordinary lavatory, drinking, cleaning and pantry purposes. Water consumed for any additional purposes is subject to charge therefor and, separate metering. Alliance is subject to charge and separate metering for water used for any additional purposes.
|
|||||||
Housekeeping Supplies:
|
Landlord must approve, in its reasonable discretion, suppliers of laundry, linen, towels, drinking water, ice and similar supplies to be consumed in the demised premises. Landlord may designate exclusive suppliers of any such supply provided that such suppliers’ rates and quality are comparable to other suppliers (orig. §32.05).
|
|||||||
Food & Beverages:
|
Landlord must approve, in its reasonable discretion any vendor of food or beverages to be consumed in the demised premises (orig. §32.06).
|
|||||||
Cleaning:
|
See page 21.
|
|||||||
Building Directory and Concierge:
|
Alliance is provided with its proportionate share (based upon the same percentage used in calculating Alliance’s share of operating expense escalations) of listings for itself, and any other person or entity in occupancy of the demised premises and their employees. Landlord may reduce the number of such listings provided that Alliance always has its share in proportion to the space it occupies in the building (Sup6 §23).
So long as Alliance and its affiliates are in occupancy of at least 200,000 rsf, Alliance, at no additional cost, is permitted to station 1 or, if practicable, 2 of its employees at the lobby’s concierge desk with a telephone, an employee telephone directory, guest passes and an identifying sign (Sup9 §10(f)).
|
|||||||
Signage and Flag:
|
So long as Alliance and its affiliates are in occupancy of at least 200,000 rsf, Alliance has exclusive right to name the building after itself or, subject to Landlord’s consent, any of its affiliates, and Alliance has the right to install signage with its name and logo:
• above the lobby entrance (which may be illuminated subject to Landlord’s reasonable approval, but not neon, and provided that any other exterior signage is subject to Alliance’s approval),
• on the building plaza kiosks (with signage for the building’s retail tenants on such kiosks subject to Alliance’s reasonable approval and any other kiosk signage or retail signage subject to Alliance’s approval),
• behind the lobby concierge desk (which may be illuminated subject to Landlord’s reasonable approval, but not neon, and which will be the only sign behind the lobby concierge desk, although Landlord may install less prominent signage for other tenants elsewhere in the lobby subject to Alliance’s reasonable approval), and
• place “tombstone” signs on the building plaza
If occupancy decreases to less than 200,000, Landlord may remove Alliance’s signage (Sup9 §10(a)). Landlord has reasonable approval rights as to the design and location of Alliance’s signage. All installation, maintenance and removal work relating to Alliance’s signage will be performed by Landlord at Alliance’s reasonable expense (Sup9 §10(b)).
So long as Alliance and its affiliates are in occupancy of at least 200,000 rsf, Alliance may fly a flag bearing its name and logo, the design of which is subject to landlord’s reasonable approval, from a flagpole on the building plaza. No other flagpole may be installed on the building plaza without Alliance’s approval (Sup9 §10(d)).
Landlord is prohibited from installing any signage in the area of the lobby’s upper elevator bank for an Alliance competitor occupying Floors 46-50, or a majority thereof (Sup13 §19(d)).
|
|||||||
General Contractor:
|
Landlord’s affiliate will act as general contractor for any alteration work performed anywhere in the demised premises for one year after Landlord delivers the 2nd and 8th- 14th floors to Alliance following substantial completion of Landlord’s work thereon, for a fee not to exceed 6% of the aggregate cost of such work (Sup15 §6(a)). Alliance and Plaza Construction Corp., Landlord's affiliate, have subsequently entered into that certain Master Agreement dated January 27, 2004 pursuant to which Plaza Construction Corp. will provide construction management services to Alliance in respect of construction projects at the building.
|
Parking:
|
37 spaces in the building garage at the garage’s standard rates and terms, but the first 25 are at a 10% discount if Alliance reserved such spaces before the Sup9 Adjustment Date (Sup9 §18; Sup12 §12). Landlord’s parking obligations continue so long as Landlord is the garage operator or so long as the garage is generally available to building tenants (Sup15 §22).
|
|||||||
Allowances and Credits:
|
The following allowances and credit may have been used or applied:
10th Floor: $130,000 credit against fixed annual rent due from and after Floor 10 is included in the demised premises (Sup19 §9).
15th Floor: $987,725 for tenant’s initial fit-out and professional fees relating thereto. Any portion not used for such purposes is credited against fixed annual rent (Sup12 §6(b)).
|
|||||||
16th Floor: $987,725 for cost of initial fit out and professional fees relating thereto. Any portion not used for such purposes is credited against fixed annual rent (Sup12 §6(c)).
|
Casualty:
|
In case of casualty, Landlord is required to restore the building and/or the demised premises (other than property installed by or on behalf of Alliance). Fixed annual rent and additional rent is abated to the extent that the demised premises or a portion thereof are unrentable and are not occupied by Alliance for the conduct of its business. In case of substantial casualty affecting the demised premises, Alliance may terminate the lease if Landlord’s restoration is not completed within 1 year, subject to extension of up to an additional 6 months for circumstances beyond Landlord’s reasonable control. (orig. §13.01). In case the building or the demised premises are substantially damaged in the last 2 years of the term, either Landlord or Alliance may cancel the lease upon notice given within 60 days of such casualty (orig. §13.02). Landlord may terminate the lease upon 30 days’ notice given within 120 days of a casualty that so damages the building that Landlord decides to demolish it or not rebuild it (orig. §13.03).
|
||||
Condemnation:
|
In case of a total condemnation of the demised premises, the lease terminates (orig. §14.01). In case of a condemnation other than a total condemnation of the demised premises, the lease will continue, but fixed annual rent and additional rent, will be abated proportionately, provided that if more than 25% of the demised premises is condemned, Alliance may terminate the lease upon 30 days notice given within 30 days after such condemnation (orig. §14.02). Landlord is required to repair any damage caused by such condemnation (orig. §14.02). In case of a condemnation of more than 25% of the demised premises, Landlord will, to the extent of the condemnation award, repair damage caused by such condemnation within 6 months of the condemnation, as such period may be extended due to force majeure. If Landlord fails to complete repairs within 6 months, as extended due to force majeure, Alliance may terminate upon 30 days’ notice (orig. §14.04). In case of any partial condemnation within the last 2 years of the term, either party may terminate the lease within 32 days of the condemnation upon 30 days notice (orig. §14.04). In case of a temporary taking of all or part of the of the demised premises, there will be no abatement of rent, but Alliance is entitled to any condemnation award and if such temporary taking occurs in the last 3 years of the terms, Alliance may terminate the lease upon 30 days’ notice given within the 30 days of title vesting in such condemnation (orig. §14.05).
|
Subletting the demised premises, assigning the Lease, allowing others to use the demised premises, and advertising for a subtenant or assignee are not permitted without the consent of Landlord (§15.01), which consent will not unreasonably be withheld (§15.05) except with regard to the ground floor portion of the demised premises. Landlord has no recapture rights. Alliance may, without Landlord’s consent, assign or sublet to a corporation into or with which Alliance is merged, with an entity to which substantially all of Alliance’s assets are transferred, or to an entity which controls or is controlled by Alliance or is under common control with Alliance, subject to a net worth test (§15.02). Also, Alliance may, without Landlord’s consent, permit an affiliate (defined as “an entity which controls or is controlled by Alliance or is under common control with Alliance”) to occupy all or a portion of the premises (orig. §15.08). Any permitted assignment or sublease will not be effective until Alliance delivers to Landlord a recordable sublease or assignment agreement reasonably satisfactory to Landlord pursuant to which the subtenant or assignee assumes all of Alliance’s obligations under the Lease. Alliance will remain fully liable under the lease for the payment of rent and the performance of all of Alliance’s other obligations under the Lease notwithstanding any such assignment or sublease (orig. §15.03).
|
|||||
Landlord’s Consent to assignment or sub-subletting by an assignee or subtenant:
|
Landlord’s consent will not be unreasonably withheld or delayed, provided that such further assignment or sub-sublease is subject to all of the other terms and conditions of the Lease regarding assignment and subletting (Sup7 §12(b)).
|
||||
Profits:
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If Alliance assigns the lease or sublets any portion of the demised premises other than to a corporation into which Alliance is merged or consolidated, or to which Alliance’s assets are transferred or to any entity which controls or is controlled by Alliance or is under common control with Alliance, then Alliance will pay Landlord 50% of any profits after first deducting reasonable expenses incurred in connection with such assignment/sublease amortized on a straight line basis over the balance of the lease term (in case of an assignment) or over the term of the sublease (in case of a sublease) (orig. §15.07). For the first 50% of rsf of demised premises other than ground floor space (including Floors 2 and 8-14 after such floors are delivered to Alliance (Sup15 §19(a)) assigned or sublet by Alliance, Alliance will have the right to deduct as such a reasonable expense a “Tenant Improvement Deduction”, determined as of the commencement date of such sublease or assignment, and calculated as follows:
((A/2 – B) ÷ C) x D, where
A = amortized value of Alliance leasehold improvements (regardless of whether paid for with tenant allowance) based upon the average value of Alliance’s unamortized leasehold improvements on a per rentable square foot basis for all of the demised premises other than any concourse space (Sup15 §19(b) or ground floor space (Sup20 §2(a)), amortized on a straight line basis from completion date until 10/31/09 (if located on Floors 37-39 and completed prior to 8/16/94 and such calculation is being made prior to the delivery of Floors 2 and 8-14 (Sup15 §19(a))) or the lease expiration date (in all other cases)
B = total landlord cash contribution or allowance to Alliance for leasehold improvements under the lease,
C = total rsf of the demised premises, and
D = rsf of the space being sublet or assigned. (Sup9 §13(d))
In determining profits, Alliance is permitted to take into account its electricity expenses under the lease and cleaning expenses (whether under separate agreement with Landlord’s contractor or pursuant to the lease) (Sup9 §13(d)), and its rental cost for the space being sublet or assigned will be determined using an average, on a rentable square foot basis, of its rental cost for the entire demised premises other than any concourse space or ground floor space (Sup20 §2(b)) except with respect to any sublease or assignment of the 2nd, 8th-14th or 17th (part) floors made before Alliance ever occupies such space (which is the case for Floor 10 (Sup19 §6(b)) in which case Alliance’s rental cost will be based on its actual rental without including any deduction for unamortized tenant improvements (Sup15 §19(d); Sup16 §12, Sup17 §11; Sup18 §11). If Alliance subleases any part of Floors 2 and 8-14 or assigns the Lease with respect thereto after first occupying such space, then Alliance will have the right to take a “Tenant Improvement Deduction” as provided above.
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Ground Floor:
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Alliance has the right of first offer to lease all or a portion of the space occupied by European American Bank as of August 16, 1994, upon such space (or portion thereof) becoming available, at 95% of fair market rent (as determined by Landlord but subject to a specified arbitration process if Landlord and Alliance cannot agree within 60 days of Alliance’s acceptance of the offer) (Sup9 §14(a)). So long as Alliance and its affiliates occupy at least 200,000 rsf of the building, Landlord is restricted from leasing such space to a competitor of Alliance (Sup9 §14(a)(ii)). This right of first offer is not subject to the condition that Alliance not be in default beyond the expiration of applicable notice and cure periods under any of the terms, provisions and conditions of the Lease.
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24th and 25th Floors:
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[Note: The 24th and the 25th floors are currently used for the building’s mechanical equipment and are not leased to tenants.]
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26th, 27th and 28th Floors:
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Subject to the superior rights (as of 8/16/94) of any then-existing tenant or occupant of the building and the superior rights of any tenant that leases floors 26 through 28, Alliance has the right of first offer to lease, at fair market rent (as determined by Landlord but subject to a specified arbitration process if Landlord and Alliance cannot agree within 60 days of Alliance’s acceptance of the offer), the 26th, 27th and 28th floors (or a portion of any such floor, if offered to Alliance as a partial floor), upon availability (Sup9 §14(c)). We have been advised by Judd S. Meltzer Co. Inc. that this space is presently leased to Avon pursuant to a lease which expires on October 31, 2016 and that Avon has three 5-year extension options which are superior to Alliance’s right of first offer.
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29th Floor:
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Subject to the superior rights (as of 8/16/94) of any then-existing tenant or occupant of the building and the superior rights of any tenant that leases floors 26 through 28, Alliance has the right of first offer to lease, at fair market rent (as determined by Landlord but subject to a specified arbitration process if Landlord and Alliance cannot agree within 60 days of Alliance’s acceptance of the offer), the 29th floor (or a portion thereof, if offered to Alliance as a partial floor), upon availability (Sup9 §14(c)). We have been advised by Judd S. Meltzer Co. Inc. that this space is presently leased to Dean Witter pursuant to a lease which expires on February 28, 2005 and that Avon has superior rights to this right of first offer.
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30thFloor:
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Subject to the superior rights (as of 8/16/94) of any then-existing tenant or occupant of the building and the superior rights of any tenant that leases floors 26 through 28, Alliance has the right of first offer to lease, at fair market rent (as determined by Landlord but subject to a specified arbitration process if Landlord and Alliance cannot agree within 60 days of Alliance’s acceptance of the offer), the 30th floor (or a portion of any such floor, if offered to Alliance as a partial floor), upon availability (Sup9 §14(c)). We have been advised by Judd S. Meltzer Co. Inc. that this space is presently leased to Rubenstein pursuant to a lease which expires on December 31, 2009 and that Rubenstein has one 5-year extension option which may be preempted by Alliance.
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46th through 50th Floors:
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Subject to the superior rights (as of 8/16/94) of any then-existing tenant or occupant of the building and the superior rights of any tenant that leases floors 26 through 28, Alliance has the right of first offer to lease, at fair market rent (as determined by Landlord but subject to a specified arbitration process if Landlord and Alliance cannot agree within 60 days of Alliance’s acceptance of the offer), the 49th and 50th floors (or a portion of any such floor, if offered to Alliance as a partial floor), upon availability (Sup9 §14(c)). This right of first offer also applies to the 46th through 48th floors (Sup10 §4(b); Sup14 §16). We have been advised by Judd S. Meltzer Co. Inc. that this space is presently leased to Pimco pursuant to a lease which expires on December 31, 2016 and that there are no superior rights to this right of first offer.
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All other space:
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Alliance has the right of first offer to lease all other space in the building it does not already lease or that is not subject to another of Alliance’s rights of first offer, upon availability, at fair market rent (as determined by landlord but subject to a specified arbitration process if Landlord and Alliance cannot agree within 60 days of Alliance’s acceptance of the offer) (Sup15 §9(a)(1); Sup16 §14). This right of first offer is subject to the conditions that Alliance and its affiliates are in occupancy of at least 400,000 rsf and is subject to any rights of first offer or refusal held by any other building occupant or tenant existing as of August 3, 2000 (Sup15 §9(a)(i) and (ii)). (Note: We have been advised by Judd S. Meltzer Co. Inc. that the following superior rights exist: Linklaters has two 5-year extension options with respect to the 19th floor, Smith Barney has one 5-year extension option with respect to the 21st and 22nd floors; Nichimen has one 5-year extension option with respect to the 23rd floor and Avon has rights to the 23rd floor.) Alliance may not exercise such right of first offer during the last 10 years of the term unless (i) Alliance simultaneously extends the lease term pursuant to the Lease, or (ii) such offer is made during the period beginning 10 years before the expiration date and ending 5 years before the expiration date and is for 2 or fewer floors (provided that if it is for more than 2 floors and Alliance wishes to accept the offer, Alliance must accept Landlord’s terms (including, perhaps, a non-coterminous expiration date) for those excess floors) (15 Sup, §9(a)(iii)(7)).
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Events of Default:
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Landlord may terminate the lease upon 10 days’ notice if:
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(i) Alliance fails to pay fixed annual rent or any other lease payment within 10 days after notice from Landlord of such failure;
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(ii) Alliance fails to cure its default under any of its other obligations under the lease, or fails to re-occupy the demised premises after abandoning the demised premises, within 30 days after notice from Landlord (reduced to 5 days in case of default under Alliance’s obligation to use the demised premises in conformance with the certificate of occupancy or Alliance’s failure to provide an estoppel), but if such default cannot be cured within such period, such period is extended as necessary to permit Alliance with diligence and good faith, to cure such default; or
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(iii) an execution or attachment against Alliance or its property results in a party other than Alliance continuing to occupy the demised premises after 30 days’ notice from Landlord (orig. §19.01).
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Upon termination, Landlord may re-enter the demised premises and dispossess Alliance (orig. §19.02).
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Alliance’s obligation to pay fixed annual rent and additional rent survives any termination of the lease due to Alliance’s default (orig. §19.03). Upon such termination, Alliance will pay landlord re-letting expenses and at Landlord’s option, either a lump sum representing the present value of the excess of Alliance’s combined fixed annual rent and additional rent over the rental value for the terminated portion of the term, or on a monthly basis the excess of Alliance’s combined fixed annual rent and additional rent over the rent received from any re-letting of the demised premises for the period representing the terminated lease term (orig. §20.01).
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Landlord’s Right to Cure:
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If Alliance fails to cure a default within any applicable grace period after notice of such default (provided that no notice is required in case of emergency), then Landlord may cure such default and bill Alliance for the cost of such cure, which bill will be due upon receipt (orig. §21.01).
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Right to Contest:
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Alliance may contest any law that Alliance is obligated to comply with under the lease and compliance thereunder, provided that:
(a) such non-compliance will not subject Landlord to criminal prosecution or subject the building to lien or sale;
(b) such non-compliance does not violate any fee mortgage, ground lease or leasehold mortgage thereon;
(c) Alliance will deliver a bond or other security to Landlord; and
(d) Alliance will diligently prosecute such contest.
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Arbitration:
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Where arbitration is required by the lease, unless otherwise expressly provided, the arbitration will be in New York City in accordance with the Commercial Arbitration Rules of the American Arbitration Association and the lease, and judgment may be entered in any court having jurisdiction (orig. §33.01).
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Limits on Alliance’s Remedies:
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Alliance cannot, in response to Landlord’s act or omission, terminate the lease or set-off rent before giving any ground lessor or mortgagee of the fee or ground leasehold estate for which Alliance has been given an address notice of such act or omission and a reasonable period of time to cure. Such ground lessor or mortgagee, however, has no obligation to cure such act or omission.
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Landlord:
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Landlord may enter the demised premises to perform alteration work, to inspect the demised premises or to exhibit the demised premises to prospective purchasers, mortgagees or lessors of the building and (during the last 6 months of the term) to prospective lessees of the demised premises, provided that Landlord provides Alliance advance notice (which may be oral) of such entry (orig. §16.01). Landlord will exercise reasonable diligence so as to minimize the disturbance (orig. §16.01).
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Carter-Wallace, Inc.
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Carter-Wallace, Inc. is allowed, once a month upon reasonable notice during business hours, access in the vicinity of column 63 on the northeast side of the 41st floor to service a humidifier, provided that Carter-Wallace, Inc. will move such portion of humidifier off the 41st floor if Alliance reasonably requires Carter-Wallace, Inc. to do so as part of Alliance’s alteration work on the 41st floor (LTR1, par 2).
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All notices required to be given by the lease or by law are required to be in writing. Notices, which are required to be sent by certified or registered mail, are deemed sent by the sender and received by the recipient when deposited in the exclusive care and custody of the U.S. mail. Notices to Landlord are to be addressed as follows:
1345 Leasehold Limited Partnership
c/o Fisher Brothers 299 Park Avenue New York, New York |
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with a copy to:
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Fisher Brothers
299 Park Avenue New York, New York Attn: General Counsel |
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(orig. §31.01)
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Cleaning & Janitorial:
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$1.83 | ||||
R&M:
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$0.84 | ||||
Landscaping: | $0.02 | ||||
Administrative: | $0.69 | ||||
Management Fees: | $1.43 | ||||
Security: | $0.93 | ||||
Trash Removal:
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$0.31 | ||||
TOTAL: | $6.05 |
Date: February 11, 2022 | /s/ Seth P. Bernstein | ||||
Seth P. Bernstein | |||||
Chief Executive Officer | |||||
AllianceBernstein L.P. |
Date: February 11, 2022 | /s/ Ali Dibadj | ||||
Ali Dibadj | |||||
Chief Financial Officer & Head of Strategy | |||||
AllianceBernstein L.P. |
Date: February 11, 2022 | /s/ Seth P. Bernstein | ||||
Seth P. Bernstein | |||||
Chief Executive Officer | |||||
AllianceBernstein L.P. |
Date: February 11, 2022 | /s/ Ali Dibadj | ||||
Ali Dibadj | |||||
Chief Financial Officer & Head of Strategy | |||||
AllianceBernstein L.P. |