Chief Executive Officer Stephen Schwarzman, a founder of the company, is cashing out.
This years lucre — $700 million, plus some minor salary — is the first of 5 equal payments that will net him a cool $4.7 billion dollars. Nice work if you can get it.
All I can say for sure is this represents a massive transfer of wealth from Shareholders to management.
Bloomberg excerpt:
“Blackstone Group LP Chief Executive Officer Stephen Schwarzman was the highest-paid executive in the U.S. last year as his compensation topped $702 million, the Corporate Library reported.
The package for Schwarzman included $2.3 million of compensation and almost $699.8 million from the vesting of one- quarter of the equity granted as he took the firm public at $31 a share in 2007, said the Portland, Maine-based Corporate Library. Schwarzman, Blackstone’s founder, was granted $4.7 billion in equity at the time of the offering, said the Corporate Library, which specializes in governance issues. . .”
Given that another 75% of a 2007 equity grant that totaled $4.7 billion remains to be paid out. It will vest in 4 equal installments over the next four years. “It is reasonably safe to assume that Mr. Schwarzman will remain at the top of highest paid CEOs list, or close to it, for a few years to come,” the report said.
Safe to assume? I don’ t know if I would take that bet . . .
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Source:
Schwarzman’s $702 Million Tops List of Best-Paid Executives
Dakin Campbell
Bloomberg, August 13, 2009
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAuVgVeuxdGk
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