Sunday, March 1, 2015

The remuneration of the Blackstone boss reached a new record – The World

The remuneration of the Blackstone boss reached a new record – The World

Le Monde | • Updated | By

“Sky is the limit” as they say on Wall Street. Stephen Schwarzman, co-founder and head of Blackstone Group investment funds in 2014 won the astronomical sum of $ 690 million (€ 617 million), according to a stock paper published Friday, February 27. This is the highest amount ever touched by the founder of a listed company. The previous record was held by Leon Black, the founder of another fund, Apollo Global Management, which in 2013 had received 546 million euros.

The remuneration of Mr. Schwarzman has soaring 50% in 2014 compared to the previous year. His base salary yet nothing special for the boss of a big listed company (350,000 dollars) and he has not even seen bonus. In fact, most of his earnings consists of dividends. Mr. Schwarzman indeed holds 20% stake in Blackstone, the largest fund in the world of private equity (that is to say, invested in non-listed companies).

Established in 1985 and an IPO in 2007, Blackstone manages around $ 290 billion on behalf of its clients and Mr. Schwarzman himself, whose investments in individual funds reported him 33.5 million dollars. In addition, he won under the so-called “carried interest” that is to say, the percentage of the performance achieved by the fund and paid to its officers, additional 84.8 million. Amounts that are going to further increase a little fortune of Mr. Schwarzman, who was already assessed in 2014 to 12 billion dollars by the Forbes magazine.

Although his remuneration is stratospheric, its proportions are not unique to Wall Street. The three founders of the fund, Carlyle Group, and just pocket the aggregate amount of $ 800 million. As for Henry Kravis and George Roberts, the “K” and “R” of the fund KKR, they split $ 448 million in 2014.

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