Blackstone Group LP, the world’s largest private-equity firm, was asked by the Securities and Exchange Commission for more detail about how its top executives are paid, as buyout firms continue to confront the scrutiny that comes with public listings.
The SEC, in a letter dated April 25, asked Blackstone for further information about compensation for the firm’s named executive officers. The letter, along with the company’s May 9 response, was disclosed in filings today by Blackstone.
The correspondence underscores the additional information required when private partnerships become publicly traded companies. Carlyle Group, the world’s second-largest private-equity company, has selected bankers to lead its own IPO, after competitors such as KKR & Co. and Apollo Global Management LP gained public listings in the past year.
Blackstone chairman Stephen Schwarzman has “sole discretion” to adjust executives’ compensation and their portion of profits tied to the firm’s funds, a measure known as carried interest, according to the letter. The SEC pressed Blackstone to spell out in future filings how Schwarzman made those determinations.
The letter also asked Blackstone for more information about pending litigation.
