(Bloomberg) — KKR & Co. gave Co-Chief Executive Officers Joseph Bae and Scott Nuttall incentive packages that could leave them each holding more than $1 billion in stock if they meet all targets in coming years.
The firm granted both of its new leaders 7.5 million in equity-linked units that would vest in five installments if the stock price reaches certain levels and they stay for at least five years, according to a regulatory filing Friday.
The value of the package today is $565 million based on Friday’s closing price — though they aren’t eligible for a payout at that level. If they reach their highest target — a roughly 80% increase in the stock’s price — the 49-year-old executives could be left holding just over $1 billion each.
“These awards are intended to incentivize the co-chief executive officers to help drive stock price performance in a manner that is aligned with stockholder interests,” the company said in the filing. “KKR currently intends that no additional equity incentive awards will be granted to Messrs. Bae and Nuttall during the next five years.”
The package underscores the riches that can be reaped at private equity and alternative investment firms. Earlier this month, Apollo Global Management Inc. granted co-Presidents Jim Zelter and Scott Kleinman a shot at more than $860 million in stock payouts as it retooled its pay practices.
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