Excerpts on KKR Compensation

Not much is laid out in the KKR filing so far, but we WILL stay on top of it. In the meantime, here are a few excerpts.
400+ employees; 153 investment professionals (~125 equity-focused; ~25 debt-focused), 100 in accounting, finance, IT, HR; 186 admin/support staff.

“Unlike our other personnel, our senior principals historically have not been paid any cash salaries or bonuses for their services to us. Instead, these individuals have relied on cash distributions that they have received on their equity interests in our business. Because those cash distributions have been paid to senior principals in their capacities as owners of our business, the distributions have been accounted for as distributions of partners’ capital rather than employee compensation and benefits expense and, accordingly, we have not reflected those amounts as employee compensation and benefits expense in our statements of income.”

“For the year ended December 31, 2006 and the six months ended June 30, 2007, we made cash and in-kind distributions of $1.1 billion and $414.2 million, respectively, to our existing owners.”

“At the time of this offering, we intend to grant to our employees who are not principals an aggregate of _______ restricted common units under our 2007 Equity Incentive Plan, which restricted common units will be allocated based on each employee’s seniority. We will settle the restricted common units granted to these employees in the form of unrestricted common units or in cash. Holders of restricted common units will not be entitled to any voting rights or distributions with respect to their restricted common units. See “Management—IPO Date Equity Awards.”

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