Henry Kravis and George Roberts, co- founders and co-chief executive officers of KKR & Co., received $94 million each in pay and cash dividends in 2011, about 30 percent more than the year before.
Kravis and Roberts, who are cousins and both 68 years old, earned about $29.9 million in compensation and $64.2 million each in cash dividends from their ownership of KKR stock. They both received a $300,000 salary and $29.3 million in carried interest, or their share of profits, New York-based KKR said today in a filing with the U.S. Securities and Exchange Commission. Neither received a bonus.
The income of private equity executives and its taxation has come under public scrutiny this year as U.S. lawmakers are considering proposals to eliminate tax breaks that benefit some of the richest Americans. Mitt Romney, the former Bain Capital LLC CEO endorsed by Blackstone Group CEO Stephen Schwarzman, said last month his effective tax rate is close to 15 percent, less than half the top rate on ordinary income.
The income for KKR’s co-CEOs compares with $72.1 million last year, which included $20.1 million in compensation and $52 million in dividends. The two own about 86 million shares each.
Carlyle Group, the Washington-based private equity firm seeking to go public, said in a filing last month that its three founders received a combined $413 million last year. William Conway, Daniel D’Aniello and David Rubenstein each earned a $275,000 salary, a $3.55 million bonus and $134 million in distributions.
KKR said this month that fee-related earnings rose as the firm deployed more capital from its private equity funds, investors added new money and transaction fees climbed at the capital markets unit. Profit in 2011 fell 65 percent to $750.9 million as investment income declined.
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