« Quote of the Day (March 13, 2008) | Main | CGI University on the Web »

Annals of Wealth (part 4)

March 13, 2008

Money_treeThe big philanthropy news on Tuesday, as reported in the New York Times and elsewhere, was that Wall Street financier Stephen A. Schwarzman, CEO of the Blackstone Group, one of the world's largest private equity firms, had agreed "to jump-start a $1 billion expansion of the [New York public] library system with a guaranteed $100 million of his own" -- the largest gift in the library's  history.

Yesterday, the Associated Press and Wall Street Journal (but not the Times, which waited until today) reported that Mr. Schwarzman received $350.7 million in compensation in 2007, making him one of the highest-paid executives on Wall Street. That was in addition to the $4.77 billion in stock Schwarzman received in June through the initial public offering of Blackstone's management division. According to the Times, 25 percent of those shares vested immediately, generating a tidy return of about $1.2 billion, while the remaining shares will vest in equal installments over four years.

Since the IPO -- which happened just weeks before the onset of the credit crunch in U.S. debt markets -- shares of Blackstone have fallen from the initial offering price of $31 to about $16.

As they say in that television commercial, you can't make this stuff up.

-- Mitch Nauffts

« Previous post    Next post »


Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Quote of the Week

  • "[L]et me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance...."

    — Franklin D. Roosevelt, 32nd president of the United States

Subscribe to PhilanTopic


Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Filter posts