Blackstone’s CEO Earned $896.7 Million In Compensation Last Year

(CTN News) – Steve Schwarzman, Blackstone’s president and chief executive officer, received $896.7 million in compensation in 2010, a 30% reduction from the previous year. A payout of this magnitude is still one of the largest in the history of high finance.

According to a regulatory filing Friday, Schwarzman, 77, collected $777 million in dividends from his roughly 20% stake in the alternative-asset manager. In addition, he earned an additional $120 million from incentive fees and carried interests, which are shares of the fund’s profits. A record $1.27 billion was received by him in 2022.

As buyers stayed on the sidelines last year and interest rates rose, Blackstone’s pace of exiting deals slowed. It resulted in a smaller pool of profits associated with asset sales for dealmakers and executives.

In the meantime, the New York-based company raised less money from investors, including pension funds, as they were more cautious about parting with their money.

Despite Schwarzman’s shareholdings and dividends, he remains among the world’s wealthiest individuals. It is his co-founded company that has contributed to his fortune. Bloomberg Billionaires Index estimates his net worth at $41.8 billion.

Jon Gray, Blackstone’s President and Schwarzman’s heir apparent, received $266.4 million in 2023, a decrease from $479.2 million a year earlier. A total of $141 million was earned by him through dividends tied to shares held, as well as $125 million through salary, stock awards, and other compensation.

CEOs of banks

Dividends notwithstanding, both men receive more compensation than CEOs of the largest Wall Street banks, whose compensation packages are typically in the tens of millions.

As a result of Schwarzman and Gray’s windfall, it is important to emphasize the industry’s clout. In addition to financing infrastructure projects and lending to businesses, Blackstone has become a powerhouse that touches all aspects of the economy.

According to a statement emailed by Blackstone, its executives are compensated according to their performance for investors. A volatile market period has been experienced by our clients, the firm stated.

Despite a weak year for the firm’s dealmakers and fund investors, shareholders still benefited. Its shares gained 83% last year, including dividends reinvested, outpacing its largest peers as well as the S&P 500, which returned 26%. In 2023, Blackstone was included in the S&P 500 index.

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