Blackstone Inc.’s Chief Executive Officer, Steve Schwarzman, saw a 30% dip in his annual payout last year, totaling $896.7 million. The substantial compensation, while reduced from the record $1.27 billion in 2022, remains one of the most significant annual payouts in high finance.
The breakdown reveals that Schwarzman earned $777 million from dividends alone, stemming from his approximately 20% stake in the alternative-asset manager. An additional $120 million came from incentive fees and carried interest, highlighting the diversified sources contributing to his overall compensation.
Blackstone’s altered deal dynamics in 2023, characterized by a slowdown in cashing out of deals, impacted executive payouts. A cautious market, with potential buyers remaining on the sidelines and high-interest rates influencing valuations, led to a smaller pool of profits tied to asset sales.
Despite these challenges, Schwarzman’s net worth remains robust, solidifying his status as one of the world’s wealthiest individuals. His net worth, tied to Blackstone, stands at $41.8 billion according to the Bloomberg Billionaires Index.
Jon Gray, Blackstone President and Schwarzman’s heir apparent, received $266.4 million in 2023, a notable decrease from $479.2 million in the previous year. The breakdown includes $141 million from dividends linked to shares and $125 million in salary, stock awards, and other compensation.
Comparatively, Schwarzman and Gray’s combined windfall exceeds the compensation packages of CEOs in major Wall Street banks, showcasing the influential position of private equity industry executives. Blackstone, a powerhouse in the private equity landscape, has expanded its influence across various sectors, including business lending and infrastructure project financing.
In response to the compensation figures, Blackstone emphasized that executive pay is tied to performance for investors, highlighting the firm’s successful navigation of volatile market conditions on behalf of its clients. Despite a muted year for dealmakers and fund investors, Blackstone shareholders reaped rewards, with the company’s shares gaining 83% in 2023, outperforming its peers and the S&P 500.
