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Blackstone (BX) CEO Receives 20% Hike in 2020 Compensation

The Blackstone Group Inc.’s BX CEO Stephen Schwarzman received a 20% year-over-year hike in his 2020 total compensation package as the company delivered a solid performance during the year, driven by the capital market rally despite the coronavirus-induced economic crisis.

The company recorded annual distributable earnings per share of $2.65, which was 14.7% higher than that in 2019. Also, 2020 total segment revenues of $6.51 billion were 16.7% higher than 2019.

A spokesman for Blackstone stated, “Executive compensation at Blackstone is directly tied to investor and shareholder performance.”

Notably, Schwarzman received total pay of $610.5 million. This comprised compensation worth $86.4 million and dividends of $524.1 million.

Schwarzman has a 19.3% stake in the company’s shares. Hence, the majority of this bonanza resulted from his share in the company.

Notably, Schwarzman’s compensation is probably the maximum that any private equity firm’s executive received last year.

Blackstone’s president, Jonathan Gray received a total pay package of $216.1 million. This consisted of $123.2 million in compensation and $92.8 million in dividends.

Our Take

Blackstone has a strong presence across the globe along with broad diversification and organic growth prospects. Its revenue mix and superior position in the alternative investments space will likely continue to support revenue and asset growth.

Over the past six months, shares of the company have gained 31.4% compared with 25.1% growth recorded by the industry.

Currently, Blackstone carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Compensation Packages for U.S. Banking Giants in 2020

Wells Fargo WFC reduced CEO Charles Scharf’s pay package by 11.7% from the prior-year level, after the bank reported an 83% fall in net income.

Citigroup’s C CEO Michael L. Corbat received a 20.7% cut in his total compensation package for 2020. The decision was taken based on the negative impact of the pandemic on global economic conditions and the company’s involvement in certain legal matters during the year. Also, Bank of America BAC decided to cut CEO Brian Moynihan's pay by 7.5% to $24.5 million due to the impacts of the pandemic.

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