KKR founders each paid $22m
NEW YORK (Reuters) - Kohlberg Kravis Roberts & Co co-founders Henry Kravis and George Roberts were each paid about $22 million last year in fee and other income, and together own about a quarter of the storied buyout firm, according to a regulatory filing.
KKR, behind huge acquisitions such as RJR Nabisco and TXU, is moving closer to gaining its long-sought New York Stock Exchange listing. Yesterday it updated its filing with the US Securities and Exchange Commission with details of senior executive ownership and pay.
Private equity firms have typically kept details such as compensation closely guarded, but such financial disclosures are becoming more common as a number go public.
Kravis and Roberts are each taking a yearly salary of $250,000, according to the filing. They were also each awarded a $70 million noncash amount, which represents how KKR accounts for the difference in value between what they owned before KKR became a public company and how it is valued after becoming publicly traded.
The distribution of $22 million was mostly made up of their share of KKR's fee income, generated from businesses including KKR's capital markets, private equity funds and KKR asset management units.
A small part is carried interest — the percentage of profit that private equity executives take when their funds perform well.
The listing process contrasts with that of rival private equity giant Blackstone Group, which went public in 2007. The payout to Blackstone CEO Stephen Schwarzman was up to $677.2 million. Schwarzman, who drew a salary of $350,000 last year, currently owns about 23 percent of Blackstone. Schwarzman was ranked in March as number 171 on Forbes magazine's ranking of the world's top billionaires with $4.7 billion, a hair ahead of Kravis at number 201 with $4.2 billion.
Another private equity firm shortly to be listed on the NYSE, Apollo Management LP, also recently disclosed details of compensation. Founder Leon Black received $787,391 in compensation in 2009, which was made up of $100,000 salary.