Founding KKR duo rake in over $137m each



Henry Kravis and George Roberts, the co-founders and co-chief executive officers of KKR & Co, received more than US$137 million (Dh503.2m) each in pay and cash dividends last year as their payouts rose from $94m apiece a year earlier.

Mr Kravis and Mr Roberts, both 69 years old, earned $35m in compensation, consisting of $300,000 salaries and $34.7m each primarily in carried interest, or their share of deal profits. Mr Kravis got $102m in cash dividends from his ownership of KKR stock, bringing his total to $137.2m, New York-based KKR said on Friday in a filing with the US Securities and Exchange Commission. Mr Roberts got $106m in stock dividends, bringing his total to $140.8m.

The private-equity firm is not required by the New York Stock Exchange, where its shares are listed, to have a compensation committee because the firm is considered a limited partnership. As a result, executive compensation decisions are left to Mr Kravis and Mr Roberts, who are cousins and serve as co-chairmen of the company's board of directors.

KKR's economic net income after taxes, a measure of profit excluding some costs, more than quadrupled to $2 billion last year from the previous year, the firm said earlier this month.

The increase was driven by KKR's more than 20 so-called liquidity events during the year, selling assets and stakes in holdings, and a 24 per cent gain in the value of its private-equity holdings, outpacing the 13 per cent gain in the MSCI All-Country World Index.

"Our portfolio is performing, our cash distributions are starting to flow and our balance sheet is generating attractive returns," Scott Nuttall, KKR's global head of capital and asset management, said in a conference call earlier this month while discussing the year's earnings. Mr Nuttall said KKR returned more than $9bn to its investors, a record for the firm, founded in 1976.

The company's stock outpaced the broader markets, gaining 19 per cent last year, compared with the 13 per cent increase in the Standard & Poor's 500 index of large US stocks. Shares of competitor Blackstone Group LP rose 11 per cent, and Apollo Global Management LLC surged 40 per cent.

Blackstone, the largest private-equity firm by assets, said it will disclose its executives' compensation in a filing with the SEC at the end of the month.

Stephen Schwarzman, the company's 66-year-old chief executive officer and co-founder, took home $213.5m in 2011.

* Bloomberg News

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The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

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