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Top Earner:
Harvey Schwartz
could become one of the highest-paid executives on Wall Street if he significantly increases Carlyle's stock price
Photo: Andrew Harrer/Bloomberg via Getty Images
The new boss of private equity giant Carlyle,
Harvey Schwartz
(59), could become one of the highest-paid managers on Wall Street in the coming years.
The US financial investor plans to grant the newly appointed CEO a five-year share package worth 180 million dollars (168 million euros) - provided that he boosts the company's falling share price.
This was reported by the Bloomberg agency and the Financial Times on Tuesday.
The $180 million package consists of about $108 million of performance stock awards and $72 million of restricted stock awards that expire between 2024 and 2027, according to a filing filed Monday.
The larger part is to be transferred in five equal tranches, each linked to an increase in the share price in a range of 25 to 110 percent.
It is also a requirement that Carlyle achieve total shareholder returns each year that exceeds 60 percent of the companies in the S&P 500 index.
Initially, Schwartz earns a $1 million base salary and a bonus of up to $6 million.
If he gets the full amount, he could make at least $40 million a year on average, significantly more than many other Wall Street executives, including
David Solomon
, 61, current Goldman Sachs boss. Former Carlyle boss
Kewsong Lee
, 57, had sought a $300 million deal last year, but negotiations fell through and Lee abruptly left the company.
The package highlights the pressure the financial investor and its new CEO are under to convince shareholders of imminent growth and higher returns.
Carlyle stock has plummeted 46 percent in 2022, lagging behind its peers Blackstone, Apollo Global Management and KKR in key growth over the past few years.
On Monday, Carlyle had appointed Schwartz as its new CEO.
The 59-year-old top executive left Goldman Sachs in 2018 after a 20-year career after losing the race to become Goldman's CEO to Salomon.
Schwartz had been chief financial officer at Goldman, among other things.
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