Stephen Schwarzman, the boss of the world's largest private equity firm, made his fortune by being a financier who delivered outsized returns for investors from buying, restructuring and then selling companies. According to CNBC these days, he is getting huge rewards for being the biggest shareholder in what is more like a souped-up asset manager.
The Blackstone Group head is set to receive at least $120.6 million in 2011 dividends from his 21 percent ownership of the firm, based on regulatory filings. That is many times what he gets for being CEO - he received a $350,000 salary and total compensation of $6.7 million in 2010 though it hasn't yet been disclosed for last year.
Fees for managing assets and advisory services accounted for 82 percent of Blackstone's dividend payouts in 2011, up from 63 percent in 2010, the statements show. That means Schwarzman's payout includes a lot more from fees charged to investors for managing their money than from Blackstone's slice of the profits from its buyout business, also known as carried interest.
The shift will increase concerns at pension funds, university endowments and other investors, who provide the funds for private equity firms, that public listings of firms such as Blackstone means stockholders are being favored over them….
Find out more at http://www.cnbc.com/id/46429067
No comments:
Post a Comment