Summary
This amended 8-K filing from KKR & Co. Inc. (KKR) provides crucial details regarding the compensation awarded to newly appointed Co-Presidents and Co-Chief Operating Officers, Joseph Bae and Scott Nuttall. The amendments clarify the compensation structure following their appointments and addition to the Board of Directors of the Managing Partner on July 19, 2017. The new compensation arrangements are designed to incentivize long-term performance and retention. Investors should note the significant grant of restricted equity units and KKR Holdings units to Messrs. Bae and Nuttall. A substantial portion of these grants is tied to vesting conditions, including time-based tranches and a significant market price hurdle of $40.00 per common unit. This structure aligns executive compensation with KKR's stock performance and long-term value creation for shareholders.
Key Highlights
- 1KKR has amended its prior 8-K filing to disclose new compensation arrangements for Joseph Bae and Scott Nuttall.
- 2Messrs. Bae and Nuttall have been granted 4 million restricted equity units each, subject to time-based and market price-based vesting conditions.
- 3A key market price vesting condition requires KKR's common unit price to reach and maintain $40.00 for 10 consecutive trading days by December 31, 2022.
- 4Additionally, each executive has been allocated 4,850,000 KKR Holdings units, with time-based vesting over five years (2018-2022).
- 5The KKR Holdings units are exchangeable for KKR common units on a one-for-one basis.
- 6The awarded KKR Holdings units are from previously unallocated units, meaning they will not increase the total number of outstanding units on a fully-diluted basis upon vesting.
- 7Vesting for both types of awards is contingent on continued service, with provisions for death and disability.