8-KLeadership ChangesExhibits & Filings

Blackstone Inc. 8-K Report, Executive Changes (Jun 12, 2008)

Filed June 12, 2008For Securities:BX

Summary

This 8-K filing from Blackstone Inc. (BX) on June 12, 2008, primarily announces a significant executive change: the appointment of Laurence A. Tosi as the new Chief Financial Officer (CFO) of its general partner, Blackstone Group Management L.L.C., effective as soon as contractually possible, expected by September 2008. The outgoing CFO, Michael A. Puglisi, will continue as a Senior Managing Director and member of senior management. Mr. Tosi brings substantial experience from Merrill Lynch, where he held senior finance and operational roles. The filing details his compensation package, which includes a base salary, guaranteed minimum cash compensation for 2008, potential long-term incentives tied to management fees and carried interest, and significant equity-based awards in the form of Blackstone Holdings partnership units (Deferred Units). These equity awards are structured with varying vesting schedules and conditions, including sign-on, make-whole, and performance-based grants, reflecting Blackstone's strategy to align executive interests with long-term firm performance. The appointment signifies a key leadership transition as Blackstone continues to grow and manage its diverse investment strategies.

Key Highlights

  • 1Laurence A. Tosi appointed as new Chief Financial Officer (CFO) of Blackstone Group Management L.L.C.
  • 2Michael A. Puglisi will transition from CFO to Senior Managing Director and senior management.
  • 3Mr. Tosi joins Blackstone from Merrill Lynch, where he held senior finance and operational leadership positions.
  • 4Compensation package for Mr. Tosi includes base salary, guaranteed minimum cash compensation for 2008, and potential long-term incentives tied to management fees and carried interest.
  • 5Significant equity awards granted to Mr. Tosi in the form of Blackstone Holdings partnership units (Deferred Units) with multi-year vesting schedules.
  • 6Equity grants include a sign-on award, a make-whole grant for forfeited Merrill Lynch compensation, and a 2008 equity bonus grant.
  • 7Mr. Tosi will be subject to standard non-competition and non-solicitation agreements for Senior Managing Directors.

Frequently Asked Questions

Laurence A. Tosi has been appointed as the new Chief Financial Officer of Blackstone Group Management L.L.C. His transition from his previous role is expected to be completed by September 2008.

Michael A. Puglisi will remain with Blackstone as a Senior Managing Director and a member of senior management, transitioning from his CFO role.

Mr. Tosi's compensation includes a base salary comparable to other Senior Managing Directors, guaranteed minimum cash compensation for 2008 (if certain conditions are met), long-term incentives based on management fees and carried interest, and substantial equity awards in Blackstone Holdings partnership units with multi-year vesting.

Mr. Tosi will receive a sign-on grant of Blackstone Holdings partnership units, a make-whole grant to compensate for forfeited Merrill Lynch compensation, and a 2008 equity bonus grant. These awards are structured as Deferred Units and have varying vesting periods, typically vesting over five years for the sign-on and bonus grants, and four years for the make-whole grant.