Yahoo Finance Boss of Southend Airport private equity owner handed $187m pay package
The boss of the private equity giant behind London Southend Airport has been handed a $187m pay packet in his first year in the job.
Harvey Schwartz, who has served as chief executive of Carlyle Group since February last year, was paid a base salary of $838,462.
However, his total pay soared after receiving long-term share awards of almost $180m, which will vest over the coming years and are subject to performance.
Mr Schwartz was also handed a bonus of $6m, which was twice the target level and the maximum possible award.
Directors on Carlyle’s board, which includes founder David Rubenstein, Bill Conway and Daniel D’Aniello, tied Mr Schwartz’s bonus to his overperformance in cost-cutting, shaking up the compensation strategy and growing revenue.
Mr Schwartz, former co-chief operating officer of Goldman Sachs, has been tasked with pushing through cost savings at Carlyle amid a tough period for the private equity group.
Carlyle, which took control of London Southend Airport earlier this month and is also a lender to the Barclay family’s Very Group, is attempting to return to growth after struggling to raise funds.
The group raised around $15bn for its latest US buyout fund, less than half the $27bn target set by former boss Kewsong Lee.
Bosses are also hoping to rekindle the group’s share price, which has lagged behind listed rivals including Blackstone, Apollo and KKR. Carlyle has increased the amount of its own shares it can buy back from $400m to $1.4bn.
Since joining the firm, Mr Schwartz has overhauled executive pay to link compensation more closely to investor returns.
He has also begun cutting costs as part of a broader plan to find $40m of savings across the business in 2024.
Carlyle has reportedly begun cutting jobs in its US buyout investment team, including its fundraising unit.
In a statement ahead of Carlyle’s annual general meeting next month, Mr Schwartz said: “Growth remains our key priority, while also executing our strategy in a disciplined manner to continue optimising our operational and capital efficiency.
“We entered 2024 with significant momentum and strong operating leverage and we are well-positioned to deliver value for all our stakeholders.”
