Blackstone Inc. Chief Government Officer Steve Schwarzman took dwelling $896.7 million final 12 months, a 30% drop from a 12 months earlier, but nonetheless one of many largest annual payouts on report in excessive finance.
Schwarzman, 77, collected $777 million in dividends alone from his roughly 20% stake within the alternative-asset supervisor, in accordance with a regulatory submitting Friday. He earned a further $120 million principally by way of incentive charges and the share of fund income often known as carried curiosity. He obtained a report $1.27 billion in 2022.
Blackstone slowed its tempo of cashing out of offers final 12 months, as would-be consumers stayed on the sidelines and excessive rates of interest curbed valuations. That left dealmakers and executives with a smaller pool of income tied to asset gross sales.
In the meantime, the New York-based agency raised much less from buyers reminiscent of pension funds as many had been extra cautious about parting with money.
Schwarzman’s shareholdings and the dividends nonetheless cement him as one of many world’s richest individuals. His fortune is tied to the agency he co-founded. He has a web price of $41.8 billion, in accordance with the Bloomberg Billionaires Index.
Blackstone President Jon Grey, Schwarzman’s inheritor obvious, bought $266.4 million in 2023, a lower from $479.2 million a 12 months earlier. He reaped $141 million from dividends tied to shares held in addition to $125 million in wage, inventory awards and different compensation.
Financial institution CEOs
When accounting for the dividends, each males acquire greater than the CEOs of the largest Wall Road banks, the place compensation packages for prime brass sometimes tally within the tens of tens of millions.
Schwarzman and Grey’s windfall underscores the clout of the non-public fairness business. Blackstone, like different buyout outlets, has grown right into a powerhouse that touches all features of the financial system, lending to to companies and financing infrastructure initiatives.
Blackstone mentioned in an emailed assertion that its executives are paid based mostly on how they carry out for buyers. “We have navigated a volatile period for markets for our clients,” the agency mentioned.
In a muted 12 months for the agency’s dealmakers and fund buyers, shareholders nonetheless did nicely.
The shares gained 83% final 12 months, together with reinvested dividends, beating its largest friends in addition to the S&P 500, which returned 26%. Blackstone grew to become a member of the S&P 500 in 2023.