Bloomberg News

Apollo Chief Black Got $125 Million as Payout Increased

March 01, 2013

Leon Black, co-founder and chief executive officer of Apollo Global Management LLC (APO:US), received $125.5 million in compensation and cash dividends last year as his payout climbed from $77.3 million a year earlier.

Black, 61, was paid a $100,000 salary and $187,368 in other compensation, including reimbursement for the cost of Black’s car, driver and tickets to sporting events, the New York-based company said today in a filing (APO:US) with the U.S. Securities and Exchange Commission. He received $125.2 million in cash dividends from his ownership of Apollo stock.

The private-equity firm isn’t required by the New York Stock Exchange, where its shares are listed, to have a compensation committee because Apollo is considered a limited partnership. As a result, executive compensation decisions are left to Black, who is chairman of the company’s board of directors, and co-founders Joshua Harris and Marc Rowan.

Apollo’s economic net income after taxes, a measure of profit excluding some costs tied to its 2011 initial public offering, was $1.5 billion in 2012, compared with a loss of $322 million the previous year, the company said last month. The increase was driven by the sale of Apollo-owned assets and strong performance by several of the firm’s largest holdings, including LyondellBasell Industries NV (LYB:US) and Metals USA Holdings Corp. (MUSA:US)

‘Good Time’

“Given the nature of our portfolio, when it was invested and how these companies are doing, we believe that we were ripe for monetizations,” Marc Spilker, Apollo’s president, said last month on a conference call discussing the firm’s earnings. “As long as the window stays open, it feels like a good time for us to monetize.”

Apollo’s private-equity funds have made money for investors, generating a 25 percent net internal rate of return across pools as of Dec. 31, according to Apollo’s most recent earnings report. Its latest flagship buyout fund, which started investing in 2008 with $14.7 billion, was producing a 26 percent net IRR, with its value standing at $23.1 billion.

Henry Kravis and George Roberts, KKR & Co.’s co-founders and co-CEOs, took home more than $137 million each in 2012, their firm said last week in a regulatory filing, as its profit last year more than quadrupled to $2 billion from 2011. Roberts got $140.8 million and Kravis received $137.2 million, each including about $35 million of carried interest.

Stephen Schwarzman, chairman and CEO of Blackstone Group LP (BX:US), earned $213.3 million in pay and cash dividends last year, almost matching his payout of $213.5 million the previous year, Blackstone said today. Schwarzman, 66, received the bulk of his payout in the form of stock dividends, which netted the Blackstone co-founder $204 million.

Black is worth an estimated $6.9 billion, according to the Bloomberg Billionaires Index. Schwarzman has a net worth of $7 billion, and Kravis and Roberts are worth $4.6 billion and $4.5 billion, respectively, according to the index.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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Companies Mentioned

  • APO
    (Apollo Global Management LLC)
    • $23.87 USD
    • -0.13
    • -0.54%
  • LYB
    (LyondellBasell Industries NV)
    • $113.3 USD
    • 0.05
    • 0.04%
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