Steve Schwarzman, the CEO of Blackstone Inc., received $896.7 million in compensation last year, a 30% decrease from the previous year but still among the highest yearly salaries in the high finance sector. According to a regulatory filing on Friday, Schwarzman, 77, received $777 million in dividends alone from his about 20% ownership in the alternative asset manager. The majority of the additional $120 million he received came from incentive fees and carried interest, which is a portion of fund earnings. In 2022, he was awarded a record $1.27 billion.
Due to a lack of interest from potential purchasers and low values caused by high interest rates, Blackstone reduced the speed at which it closed acquisitions in the previous year. Dealmakers and executives therefore had a reduced profit margin associated with asset transactions. As a result of investors’ increased caution when parting with cash, the New York-based company was able to attract less money from pension funds and other investors.
Schwarzman’s position as one of the richest persons in the world is cemented by his shareholdings and dividend income. The company he co-founded is responsible for his wealth. Based on the Bloomberg Billionaires Index, his net worth is $41.8 billion. Schwarzman’s potential successor, Blackstone President Jon Gray, received $266.4 million in 2023 as opposed to $479.2 million the previous year. In addition to $125 million in salary, stock awards, and other benefits, he received $141 million in dividends linked to the shares he owned.
A Reflection of Private Equity’s DominanceTop of Form
Both men earn more than the CEOs of the largest Wall Street banks, whose top executives usually get compensation packages in the tens of millions when dividends are taken into consideration. The wealth that Schwarzman and Gray have amassed highlights the influence that the private equity sector holds. Similar to other buyout firms, Blackstone has developed into a titan of the financial industry, funding infrastructure projects and lending to companies in every sector.
Executive compensation at Blackstone is determined by how well they perform for investors, the company stated in an email statement. The firm also said,
“We have navigated a volatile period for markets for our clients.”
Even though the company’s fund investors and dealmakers had a quiet year, stockholders fared handsomely. The stock outperformed both its largest competitors and the S&P 500, which returned 26%, with an 83% increase last year, including reinvested dividends. In 2023, Blackstone joined the S&P 500.
About Schwarzman
At Blackstone, one of the top investment firms in the world with over $1 trillion in assets under management (as of December 31, 2023), Stephen A. Schwarzman serves as chairman, CEO, and co-founder. Since Blackstone was founded in 1985, Mr. Schwarzman has been involved in every stage of the company’s development. The company has built up industry-leading investment businesses in several asset classes, including real estate, where it is currently the world’s largest owner of commercial real estate; hedge fund solutions, where it is the largest investor in discretionary hedge funds; credit, where it is a global leader and major provider of credit for businesses of all sizes; and private equity, where it is a global leader in traditional buyout, growth equity, special situations, and secondary investing.
