Just came across this article on NYT which gives a snapshot of the compensation received by executives at PE firms. The CEO of Blackstone took a compensation of $ 800 million in 2015. In comparison, Blankfein from GS made $ 23 million for the same year. The real estate chief at Blackstone makes 10 times of it. It is fair to say that the difference is stark.
For all the populist outrage that banks have faced over compensation, their executives make just a fraction of what private equity chiefs do. Median pay among the top-ranking private equity executives in the joint study was $138 million in 2015; for bankers, that number was $23 million.
Wanted to know the opinion of the WSO community on this. Considering all the noise and hate towards Wall Street bankers during the election, do you think the PE guys are given a lot of leeway in terms of compensation, general perception etc.?
Founder vs employee. The vast majority of those quoted numbers come from dividends on the private equity executives equity stakes, not from salary / bonus
Agreed. Schwarzman built Blackstone, his income is from dividends. Jonathan Gray has been with BX and built up it's highly successful REPE business. You're comparing apples to oranges
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