Consolidation Eliminations — Noninterest Expense Related To Performance Fees

Analysis

StatementSegment

CategoryEfficiency

SignalContext dependent

VolatilityStable

First reportedQ1 2016

Last reportedQ1 2018May 7, 2018

Changes reflect shifts in internal incentive structures rather than changes in external compensation costs.

This adjustment removes intercompany expenses related to performance-based fees. It ensures that performance fee payouts...

Common in asset managers with internal performance-sharing agreements between different business segments.

Metric ID: ares_segment_consolidation_eliminations_noninterest_expense_related_to_performance_fees

What does consolidation eliminations — noninterest expense related to performance fees mean?: The removal of internal performance fee expenses to prevent the overstatement of operating costs.