Monday, 24 October 2016
Last updated 2 days ago
Apr 29 2014 | 12:45pm ET
Apollo Global Management is set to become the first private-equity firm to pay out partner profits in the form of shares.
Apollo, one of just a few publicly-listed p.e. firms, plans to introduce the new scheme on its flagship fund. Partners working on the vehicle will receive some of their share of profits in Apollo stock, rather than entirely in cash, as is the firm’s practice now.
The stock awards will not vest until three years after Apollo exits the investment that earned the partner his or her commission, the New York Post reports. And if an employee is fired, even without cause, the profit share will not automatically vest.
The new rule will not cover Apollo’s three top partners, Leon Black, Joshua Harris or Marc Rowan, because each already owns a substantial stake in the New York-based firm.