Carlyle Group Inc. said it plans to give incoming Chief Executive Officer Harvey Schwartz a five-year stock incentive package valued at $180 million — if he can lift the firm’s sagging share price.
(Bloomberg) — Carlyle Group Inc. said it plans to give incoming Chief Executive Officer Harvey Schwartz a five-year stock incentive package valued at $180 million — if he can lift the firm’s sagging share price.
The package includes roughly $108 million in performance-based restricted stock units and $72 million in time-based restricted stock units, according to a regulatory filing Monday.
The larger portion is set to vest in five equal tranches, each tied to boosting the share price by amounts between 25% and 110%, with the last two payouts also linked to total shareholder returns, the filing shows.
The package underscores the pressure on the company and its new leader to persuade shareholders that it can grow and deliver stronger returns. Carlyle’s stock slumped 46% in 2022, underperforming its main rivals.
Read more: Carlyle picks Goldman veteran Harvey Schwartz as next CEO
Schwartz, whose appointment was announced earlier Monday, will also initially be paid a $1 million base salary and a bonus of as much as $6 million.
At Goldman, Schwartz served as finance chief before a stint as co-president and co-chief operating officer alongside David Solomon. When Solomon emerged as the favored pick for CEO, Schwartz resigned.
Joining Carlyle gives him a fresh start, and a chance to earn more than what bank chiefs typically make. Depending on how Carlyle’s stock performs, Schwartz’s ultimate haul could far exceed the $180 million value assigned to his package.
And he could receive a payout faster if Carlyle is sold and he leaves, the filing shows.
In preparation for compensation talks, Carlyle’s last CEO Kewsong Lee had asked for a pay package of as much as $300 million-plus over five years, a person with knowledge of the matter said. The request went nowhere, and he resigned in August after a tussle over power. Lee did not respond, and Carlyle had no further comment on the matter.
(Updates with context of previous CEO’s pay request in last paragraph)
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