- The Washington Times - Thursday, March 13, 2008

NEW YORK — Stephen Schwarzman, the chairman and chief executive of Blackstone Group LP, received $350.7 million in compensation last year, putting him among the highest paid executives on Wall Street.

That comes on top of the $4.77 billion the company co-founder received when his stake in the company was converted into stock as part of the private equity giant’s splashy initial public offering. Details of his compensation package were disclosed in a filing yesterday with the Securities and Exchange Commission.

Mr. Schwarzman — who earlier this week announced a $100 million personal donation to the New York Public Library — made $350,000 in salary but took no bonus in 2007, according to the filing. The Blackstone chairman and chief executive received $179,482 in other compensation, which includes the use of a car and driver.

Mr. Schwarzman also received $309.6 million in cash distributions — compensation given to partners for the performance of their fund — last year, for the period from Jan. 1 to the company’s initial public offering (IPO) on June 21. He then received another $40.6 million in cash distributions from investment funds for the balance of the year.

Blackstone officials previously said Mr. Schwarzman received $4.77 billion worth of stock, representing his share of the company, through the June’s IPO of Blackstone’s management division. Twenty-five percent of those shares immediately vested.

His stock holdings have declined in value since the IPO, when shares were priced at $31 apiece. Today, the shares are trading at about $16 each.

The figures included are drawn from Blackstone’s annual report filed yesterday. The company has not filed its annual proxy statement, which could provide additional details about Mr. Schwarzman’s compensation.

The Associated Press’ total pay calculations include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

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