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KKR’s Kravis, Roberts Each Earned $94M

KKR & Co. co-chief executives Henry Kravis and George Roberts each received roughly $94 million in executive compensation and cash dividends, Reuters reported, citing a filing with the U.S. Securities and Exchange Commission. The co-founders of the private equity firm received $64.2 million each in cash from dividend payments. KKR paid a dividend of $0.74 a share for 2011. Kravis and Roberts also received roughly $30 million each, mostly in cash payments from carried interest, Reuters wrote.

(Reuters) – KKR & Co co-chief executive officers Henry Kravis and George Roberts each received roughly $94 million in executive compensation and cash dividends from the private equity firm they helped found.

 

According to a filing with the U.S. Securities and Exchange Commission, Kravis and Roberts received $64.2 million each in cash from dividend payments. KKR paid a dividend of $0.74 a share for 2011.

 

Kravis and Roberts also received roughly $30 million each, mostly in cash payments from carried interest, according to the filing.

 

Carried interest reflects KKR’s share of the investment profits of its funds. KKR’s investments range from retailer Toys R Us Inc to Internet domain registration firm Go Daddy Group Inc and hospital operator HCA Holdings Inc.

 

Some 46 percent of the $64.2 million in distributions for the cofounders, who together own 25 percent of the firm, comes from fee-related income, showing how these private equity managers are deriving an increasing share of their payout from management fees as against carried interest.

 

At Blackstone Group LP, cofounder Stephen Schwarzman is expected to receive at least $120.6 million for 2011 from his 21 percent ownership of the firm. Fees for managing assets and advisory services accounted for 82 percent of Blackstone’s dividend payouts in 2011.

 

Kravis’ payout included $300,000 in salary, fees for serving as a director on certain portfolio companies, the use of a car and driver, and personal assistant services, the filing said.

 

Roberts’ compensation also included $300,000 in salary, a car and driver, and personal assistant services.

 

KKR does not disclose income from co-investments.

 

The private equity firm recently posted a sharp decline in fourth-quarter earnings as a drop in carried interest, driven by mark-to-market valuations of its assets, offset revenue from higher fees.