Apollo Global Management has clarified its plan to pay top partners and executives some of their bonuses in stock instead of cash, a policy that has led to grumbling among those affected, as well as a number of departures.
The private-equity giant said in a Thursday regulatory filing that partners and other top managers would receive at least some of their share of the profits, rather than cash. The shares would vest over three years.
The new compensation rules cover 27 partners and some other executives working on Apollo’s latest fund, the largest private-equity fund ever raised at $18.3 billion. Firm founders Leon Black, Joshua Harris and Marc Rowan are not affected, having surrendered their rights to a share of the profits in exchange for stock at Apollo’s initial public offering in 2011.
Apollo did not specify what percentage of carried-interest would be paid out in shares.
The new policy has proven unpopular at Apollo, with three partners resigning rather than joining the new fund’s management team, which would have required them to accept the new compensation rules.