Summary
Ares Management Corp. (ARES) filed an 8-K on March 18, 2015, primarily announcing a significant change in its Chief Financial Officer role. Michael R. McFerran was appointed as the new Executive Vice President, Chief Financial Officer, and Treasurer of the general partner, effective March 23, 2015. This appointment marks a transition for the firm, bringing in experienced leadership from Kohlberg Kravis Roberts & Co. (KKR). Investors should note the compensation package for Mr. McFerran, which includes a substantial base salary, a target annual bonus of 50-100% of base salary, relocation reimbursement, and significant equity-based incentives. These incentives include restricted units and options to purchase common units, designed to align his interests with the company's long-term performance, with vesting over several years. The filing also details the transition of the outgoing CFO, Daniel F. Nguyen, who will assume a new role focused on specific credit groups within the firm.
Key Highlights
- 1Appointment of Michael R. McFerran as the new Executive Vice President, Chief Financial Officer, and Treasurer, effective March 23, 2015.
- 2Mr. McFerran's extensive prior experience includes roles as CFO of KKR's credit business and COO/CFO of KKR Financial Holdings LLC.
- 3Mr. McFerran's compensation includes an annual base salary of $1,000,000.
- 4Eligibility for an annual discretionary bonus between 50% and 100% of his base salary for 2015.
- 5Significant equity awards for Mr. McFerran, including $500,000 in restricted units and $5,000,000 in options to purchase common units, subject to board approval and vesting over time.
- 6Daniel F. Nguyen will transition from his CFO role to Executive Vice President, Chief Financial Officer and Treasurer of the Private Equity and Tradable Credit Groups.
- 7The filing incorporates a press release (Exhibit 99.1) announcing these changes.