8-KLeadership Changes

Apollo Global Management, Inc. 8-K Report, Executive Changes (Dec 13, 2024)

Filed December 13, 2024For Securities:APOAPOSAPO-PA

Summary

Apollo Global Management, Inc. (AGM) has announced a significant equity award to its Chief Financial Officer, Martin Kelly. On December 9, 2024, the Compensation Committee approved the grant of Restricted Stock Units (RSUs) valued at $10 million. This award is intended to recognize Mr. Kelly's performance, ensure his retention, and better align his compensation with industry peers. The RSUs are scheduled to be granted on December 20, 2024, and are structured to provide an intended value of approximately $3.3 million annually over the next three years. However, the vesting and delivery of the underlying shares are contingent upon AGM meeting specific performance fee income requirements, with delivery not expected until 2028. The award includes provisions for retention, with share delivery delayed if Mr. Kelly resigns voluntarily before the end of 2027, and forfeiture under circumstances such as termination for cause or breach of restrictive covenants. Dividend equivalents will be paid on the RSUs.

Key Highlights

  • 1AGM's CFO, Martin Kelly, to receive $10 million in Restricted Stock Units (RSUs).
  • 2The RSU grant is intended to reward performance, enhance retention, and align compensation with peers.
  • 3The award is structured to provide an intended value of $3.3 million per year for the next three years.
  • 4Delivery of underlying shares is subject to AGM achieving performance fee income requirements.
  • 5Underlying shares are not expected to be delivered until 2028.
  • 6Voluntary resignation before December 31, 2027, will delay share delivery by two years.
  • 7Forfeiture of RSUs is possible if Mr. Kelly breaches restrictive covenants or is terminated for cause.

Frequently Asked Questions

The RSU grant to CFO Martin Kelly serves multiple purposes: to recognize his performance, to incentivize his continued employment and retention with Apollo Global Management, and to align his compensation more closely with that of his peers in the industry.

The delivery of shares is contingent on Apollo Global Management meeting a performance fee income requirement. The shares are not expected to be delivered until 2028, assuming these performance conditions are met and Mr. Kelly remains with the company.

If Mr. Kelly voluntarily resigns before December 31, 2027, the delivery of the vested shares will be delayed by two years, until 2030. Furthermore, if he breaches certain restrictive covenants (like non-competition or non-solicitation) or is terminated for cause, no shares will be delivered.

The $10 million RSU award is intended to provide Mr. Kelly with an approximate value of $3.3 million per year over the next three years. However, the actual value realized and the delivery of shares are subject to performance conditions and retention requirements, with the shares not being delivered until 2028 at the earliest.