KKR co-directors could make $1 billion each as part of stock incentive scheme

Joseph Bae and Scott Nuttall, recently appointed co-CEOs of KKR, has been awarded incentive stock awards that could be worth more than $1 billion each if the private equity group’s shares continue to soar in the coming years.

Bae and Nuttall were granted 7.5 million shares of stock as part of KKR’s equity performance-based incentive. They will start at $95.80 a share, or 27% up from Friday’s close of $75.34.

The prizes, which require Bae and Nuttall to be used by KKR through the end of 2026, will split into five increments between $95.80 and $135.80. They will be canceled by either executive if they are terminated for cause, or if KKR shares fail to meet competitive prices by the end of 2028.

Assuming KKR stock reaches a final price of $135.80 and trades for 20 days above that, the overall reward could be worth more than $1 billion per share for Bae and Nuttall.

“These awards are intended to incentivize co-CEOs to help drive share price performance in a way that is in the best interests of shareholders,” KKR said Friday evening. submit conducted with the Securities and Exchange Commission.

“KKR now intends that no additional equity incentive awards will be granted to Messrs Bae and Nuttall for the next five years,” the group added.

KKR shares have skyrocketed in recent years as assets pour in private equity industry and vibrant markets helped drive record profits. Its shares are up 88% this year and have more than tripled since the start of 2019.

In October, KKR co-founders Henry Kravis and George Roberts named Bae and Nuttall as co-CEOs. Leading the day-to-day operations of the private equity group.

In recent years, Bae, 49, has overseen much of KKR’s global investment platform, including private equity operations in the US and Asia-Pacific.

Nuttall, 49, has spearheaded many of KKR’s major strategic initiatives, such as listing in 2010 on the New York Stock Exchange, transforming from a partnership into a company in 2018, and building built a balance sheet of more than $25 billion, which now represents a significant portion of a market value of more than $65 billion.

According to the filing, they made more than $35 million last year, and each owns more than $1 billion in KKR holdings from previous stock awards that have increased in value along with the group’s skyrocketing share price.

Bae holds a net worth of $1.2 billion, according to the Forbes rich list, while Nuttall’s net worth is $1.4 billion.