Bumper payout for Blackstone chief executive

Michael Bow
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BLACKSTONE, the US giant that co-owns the City’s Broadgate Estate, doubled the bonus of its chief executive last year after the firm roared to bumper profits for 2012, regulatory filings show.

Stephen Schwarzman, who co-founded the company in 1985 before turning it into one of the world’s best known private equity companies, boosted his performance-fee related bonus to $8.1m (£5.4m) in 2012, up from $4.6m the year previously, documents show.

Schwarzman, who owns around 21 per cent of the firm, also took home $204m in dividend payments. Including a $350,000 base salary, Schwarzman received a total pay package of $213.3m, in line with his payout last year of $213.5m.

Blackstone said 2012 was its best year yet as a listed company, with economic net income – a common measure of profitability for alternative asset managers – up 43 per cent to $670m.

Schwarzman’s pay award outpaces other executive compensation in the sector, with KKR last week reporting that it had paid its co-founders around $137m in total compensation, including a lower $300,000 base salary.