Summary
Ares Management Corporation (ARES) announced a significant compensation restructuring for key executives and senior professionals within its Credit Group, including CEO Michael J. Arougheti and Kipp deVeer. Effective January 31, 2024, these individuals have agreed to reduce their 2024 incentive fee allocations in exchange for restricted stock units (RSUs). This move is designed to align executive compensation more closely with long-term shareholder value and potentially reduce immediate cash payouts for the company. The company granted an aggregate of 1.6 million RSUs, with 400,000 RSUs each for Messrs. Arougheti and deVeer. These RSUs vest over four years, commencing in June 2026 and concluding in June 2029, contingent upon continued service. Furthermore, the company retains the option to grant additional RSUs in 2025 and 2026 in exchange for further reductions in incentive fee allocations for those years, demonstrating a commitment to sustained executive engagement and performance.
Key Highlights
- 1Ares Management Corporation has restructured incentive compensation for key executives and senior Credit Group professionals through the grant of Restricted Stock Units (RSUs).
- 2An aggregate of 1.6 million RSUs were granted, with CEO Michael J. Arougheti and Kipp deVeer each receiving 400,000 RSUs.
- 3The RSUs were granted in exchange for a reduction in the recipients' 2024 incentive fee allocations.
- 4The RSUs are generally subject to continued employment and vest in four equal installments on June 30 of 2026, 2027, 2028, and 2029.
- 5Ares Management has the option to grant up to an additional 1 million RSUs in 2025 and 800,000 RSUs in 2026 for further reductions in incentive fees for those years.
- 6The agreements include standard restrictive covenants such as non-compete and non-solicitation clauses.
- 7Shares issued upon vesting prior to June 30, 2029, will be subject to a lock-up restriction.