Why is Steve Schwarzman still CEO

Guy is 77 years old and has been clipping $100M / yr at BX now for at least 7 years past his prime. Compensated as one of top 5 ceos this past year and for what? We all know other people are running the show for him. Why do shareholders allow this. How does society tolerate this.Jfc

 

Because he's the founder, built the entire platform, and he wants to be. Not much more to it. This isn't like sports, guys older than Steve are still leading their firms in various capacities and still crushing it.

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

who're you referring to?

Buffet's in his 90s and still one of the sharpest investors alive. There's also a small roster of other very senior founders/early employees at MF/UMM/MM funds who are worth 9-10 figs who are in similar positions after they built firms/investing arms of those funds for 30+ years. 

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

I’m saying more along the lines of it is a philosophical indictment of a sick society that a $100M teet exists.

Lol it's a multi-billion dollar teet that he built, so, no. What is this commi philosophical bs you're referencing? Sounds like something a humanities professor would cry about while grading papers. 

And indicative of a personality flaw of Steve’s that he can’t give up the reigns.

He built it. He earned it. Everyone who works in this industry dreams of achieving a fraction of the same in the best possible world. No one on the planet would give up those reigns if they don't have to, no matter how much self-aggrandizing BS they post on social media about how unfair and unequal the world is. That's reality. 

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

I’m saying more along the lines of it is a philosophical indictment of a sick society that a $100M teet exists. And indicative of a personality flaw of Steve’s that he can’t give up the reigns.

lol. I couldn’t get passed this comment. 
 

You might be looking for a different forum. 
 

 

So when will Baratta get the CEO position? Gray’s real estate business has run into several issues.

And BX is known as gold for PE. Yes, RE too but PE is top

 

Tough fundraising environment.

Also, why wouldn’t you appoint the head of PE to CEO instead of head of real estate? Especially considering it’s BX

 

It’s reasonable to assume that Gray has a greater chance given he is COO.

It’s also reasonable to see the job going to the head of PE at the greatest PE firm in the world.

With both having senior titles and being top of their game, I think it comes down to where the firm is headed and where there’s more opportunity/what is more profitable. At the moment and in the future, PE seems hotter than RE. It’s less of a Gray vs. Baratta talent war and more of an RE vs. PE business.

The RE business faces structural industry challenges whereas the PE business has lots of room for growth.

Also, despite the AUM numbers - BX gets its prestige from its PE powerhouse and the caliber of its people. That is irrefutable. Their best people come from the PE business hands down.

 

Counter to this is I think the puck for BX is heading toward being an administrator of assets vs a dynamic carry generating organization. They’re at $1T… Gray invented the BREIT retail investor piggy bank. Every fund can’t stop going on about next frontier of bringing in retail money into PE (including PC and REPE). Gray is the man for that job. Also Gray is in his own right a legend….LBOs of Hilton, and EOP, basically inventing the institutional single family rental business and IPOing that company, being early on logistics, $100b fee machine of BREIT. can’t discount this stuff just because he wasn’t buying a predatory healthcare late bill company or something…

 

1. Like I said, it is reasonable to assume that Gray could be the next CEO. Gray is talented and is already in the C suite. He has lots of facetime representing BX and a solid track record. But just because he is COO doesn’t necessarily mean that he is the successor. Heads of divisions (Baratta) that are the main focus of a firm get promoted to CEO all the time.

2. Similarly, it is also reasonable to assume that Baratta could be the next CEO. He is head of the main focus of the firm. The PE business is much more successful, has way more clout than RE, and it has much more opportunity for growth. And Gray’s RE business is struggling and faces structural issues.

3. The PE business is 1000x better/more respected than RE. This is a 100% fact.

3. Baratta does just a “decent job at PE?” You are clearly retarded and that is one of the most idiotic things I have ever heard on this site. Baratta is head of the best PE firm in the world. That doesn’t happen from just being decent. You are clearly too retarded to make a coherent argument. It is laughable that you claim to be a Principal in LBOs given you clearly lack capacity to make a solid argument. It is obvious that you are not in PE and all/many of the above accounts fall under one group/pathetic person.

 
Most Helpful

Lol, you know nothing.

Blackstone isn’t the best PE firm to anyone other than rising juniors at Stern. Thoma Bravo, Veritas, EQT, H&F, GTCR … long list of PE firms definitively better than Blackstone at PE.

I’d encourage you to open up a dictionary or maybe read investopedia. BXRE has seen some headwinds due to the interest rate environment, which is cyclical not structural. Even with those issues, the RE business generates 2x the earnings of the PE business. The portfolio is dramatically underweight office CRE and is massively exposed to logistics infrastructure. The PE business is fine. No better/worse than KKR/CD&R etc. It’s a serviceable large cap PE offering.

What Blackstone is the best at is being an alternative asset supermarket and having the best brand for institutional investors. That has less to do with PE and more to do with the fact that they’re the only large PE firm that has been able to build as big or bigger businesses outside of PE.

Im going to discontinue this debate after these (very obvious) points, because it’s a bit of a waste of time arguing with a college kiddo on WSO.

 
[Comment removed by mod team]
 

Sed perspiciatis quaerat quis aliquam vitae quis. Consequatur cum sed maxime molestiae ad distinctio. Quisquam natus a suscipit ipsam suscipit. Aut voluptatibus quos culpa voluptatem a tempora est.

Deserunt id velit dolores eum voluptas mollitia voluptas. Qui autem repellendus nesciunt consequatur quia corporis. Aliquid non iure dolor. Quo earum ut aut id itaque ea laborum molestiae. Et magnam iusto nihil dolores id a voluptas. Vel cupiditate iste voluptates et.

 

Autem qui rem assumenda possimus. Est eos rerum minus. Incidunt placeat quis ut iste totam est accusamus et.

Omnis earum id praesentium velit. Et ipsam sed laborum dolores. Similique qui molestias assumenda natus eveniet. Hic est alias consequatur eum amet nobis molestias. Dolores animi quidem aut occaecati temporibus veritatis. Non nam ducimus eaque temporibus. Praesentium et doloribus quis rem rem quaerat harum esse.

Omnis et nisi sapiente consequatur. Et perferendis doloribus nam atque. Eos facilis cupiditate debitis. Quae minima eligendi non quasi.

Career Advancement Opportunities

June 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Warburg Pincus 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

June 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

June 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

June 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $268
  • 1st Year Associate (389) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (316) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”